(Des Moines) Iowa’s unemployment rate dropped to 3.2% in May, down from 3.3% in April and 3.6% a year ago, while the national rate remained at 4.3%.
The number of unemployed Iowans fell to 56,100, though the total workforce declined slightly. Iowa’s labor force participation rate decreased from 67.5% to 67.4%.
According to Iowa Workforce Development, hiring has shown slow but steady growth in 2026. More than 57,000 job openings remain listed on IowaWORKS.gov, and the state’s unemployment trust fund exceeds $2.1 billion.
Iowa employers added 3,400 jobs in May, marking the third straight month of job gains and bringing total nonfarm employment to 1.58 million.
Key gains included:
- Retail trade: +1,700 jobs
- Professional, scientific, and technical services: +900
- Durable goods manufacturing: +600
Job losses occurred in:
- Health care and social assistance: -500
- Other services: -500
- Construction: -400
- Administrative support and waste management: -400
Despite recent gains, Iowa has 11,600 fewer jobs than a year ago. The largest annual declines were in:
- Trade and transportation: -6,100
- Manufacturing: -3,800
Industries showing annual growth included:
- Health care and social assistance: +3,200
- Construction: +1,700
Overall, Iowa’s economy continues to add jobs gradually, with unemployment remaining low and thousands of positions still available statewide.
