(Des Moines) Labor Force Participation Rate Increases to 67.3 Percent Amid 3,900 New Workers
(Des Moines) Iowa’s seasonally adjusted unemployment rate rose slightly to 3.6 percent in May, up from 3.5 percent in April, despite 3,900 Iowans joining the labor force. The labor force participation rate rose to 67.3 percent, up from 67.2 percent in April. Meanwhile, the U.S. unemployment rate remained at 4.2 percent.
The total number of unemployed Iowans increased to 62,400 in May from 60,700 in April.
The total number of working Iowans increased to 1,669,100 in May. This figure is 2,100 higher than April and 5,700 higher than one year ago.
“Iowans continued to rejoin the labor force in May, with nearly 4,000 people who were previously on the sidelines coming back to launch their search for a new career,” said Beth Townsend, Executive Director of Iowa Workforce Development. “IWD is well-positioned to help connect these people seeking employment with career planners who understand how to work one-on-one to help match those individuals who want to work with the employers who need their skillsets. Despite some pullback in May, Iowa employers currently have more than 50,000 open jobs posted on IowaWORKS.gov.”
In May, businesses in Iowa lost 5,200 jobs, resulting in a decrease in total nonfarm employment to 1,593,300. Private service industries were primarily responsible for the decline, although goods-producing firms also decreased slightly. Public education helped offset some of this loss, resulting in a gain of 1,000 jobs, primarily at the local level. This month’s loss erases two previous consecutive months of job gains in March and April.
The professional and business service industries have decreased by 1,200 jobs since April. This drop was fueled by losses in the administrative support and waste management industries, which led all others in terms of job losses. Financial activities also decreased by 1,200 jobs, lowering this sector to a level not seen since February 2015. This sector has produced minor gains over the last two months, resulting in a total of 800 new jobs. Private education services decreased by 1,000 jobs in May, which was the same for the combined trade and transportation super sector.
Iowa’s manufacturing sector continues to lead in annual jobs lost (-8,400). Durable goods-producing factories have been responsible for most of this decline (-5,900). The professional and business services sector is down 4,600 jobs over the past 12 months. Administrative support and waste management is responsible for a majority of the drop (-2,800). Conversely, healthcare and social assistance continue to trend upward, despite a slight decline this month. This sector has gained 4,600 jobs over the past 12 months. Other services are up 2,100 jobs. Industries in this sector include repair and maintenance, civic and social organizations, and other personal services.
