Iowa Adds 5,600 Jobs in June, Unemployment Rate Remains at 2.4 Percent

Iowa Workforce Development Communications
For Immediate Release
Date: July 19, 2019
Contact: Molly Elder
Telephone: 515-725-4116
Email:  communications@iwd.iowa.gov

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Iowa Adds 5,600 Jobs in June, Unemployment Rate Remains at 2.4 percent

Iowa’s seasonally adjusted unemployment rate remained at 2.4 percent in June. The state’s jobless rate was 2.5 percent one year ago. The U.S. unemployment rate increased slightly to 3.7 percent in June.

“Iowa continues to have one of the lowest unemployment rates in the country as a result of lower taxes, less regulations, and a strong emphasis on pro-growth policies,” said Governor Kim Reynolds. “Our strong labor market has allowed us to partner with our employers to train, skill, and re-skill our state’s workforce in order to expand opportunities for Iowans.”

The number of unemployed Iowans increased to 41,400 in June from 40,700 in May. The current estimate is 800 lower than the year ago level of 42,200. The total number of working Iowans increased to 1,676,700 in June. This figure was 3,400 higher than May and 33,400 higher than one year ago.

“June marks a milestone for Iowa’s historically low unemployment rate, making this the twelfth consecutive month of 2.4 percent unemployment. Additionally, Iowa experienced positive growth with 5,600 new jobs,” said Director Beth Townsend, Iowa Workforce Development. “Iowans can now take advantage of the Future Ready Iowa Last-Dollar Scholarship or Grant to increase their skill level and earning potential. Given our sustained low unemployment, it's important we attract skilled workers to our state through programs like Home Base Iowa and This is Iowa and ensure all Iowans have equal access to all of the opportunity in our state."

Seasonally Adjusted Nonfarm Employment
   
Iowa establishments expanded their payrolls for the third consecutive month in June, adding 5,600 jobs. Despite a weak first quarter which saw jobs shed from the state’s payrolls, firms have shown an increasing willingness to hire and prepare for increased commerce over the past three months. Goods-producing sectors have once again outpaced the growth of service industries and are up 6,200 jobs in the second quarter. Overall, private industries gained 3,800 jobs this month. Government added 1,800 jobs due to larger-than-expected seasonal hiring for summer programs and now rests 1,500 jobs higher than last year’s level.

Manufacturing led all sectors in growth in June with 2,000 jobs added. The manufacturing sector has now expanded in three consecutive months. Job gains have been heaviest in durable goods factories which have increased by 1,900 jobs since March. Nondurable goods factories added 500 jobs in June. The other services sector advanced by 1,600 jobs following little movement last month. Construction ended the second quarter with a gain of 900 jobs and in total grew by 3,500 jobs over the past three months. This is a solid improvement following losses over the past two quarters for this sector. On the other hand, professional and business services led all sectors with 1,300 jobs shed in June. A majority of these losses were in administrative support and waste management services (-700). This sector has shown unusual weakness in 2019 with jobs being added in only one month thus far (April) and is little changed versus one year ago (+200). Financial activities shed jobs for the third time in four months (-500) and is now down versus last year’s level (-600).

Annually, businesses have added 10,400 jobs over the past twelve months. Manufacturing continues to fuel job growth (+8,100) with hiring being strong in both durable and nondurable goods shops. The next closest sector for job growth is other services (+2,000), followed by education and health services (+1,200). Losses are limited to just three sectors and are highest in information services (-1,300). Trade, transportation, and utilities trails last year’s mark due to cutbacks in retail and is down 1,200 jobs overall. Financial services has trended down recently and is 600 jobs below last June.

MEDIA ALERT:  Local data for June will be posted to the IWD website on Tuesday, July 23, 2019. Statewide data for July 2019 will be released on Friday, August 16, 2019.

Employment and Unemployment in Iowa, Seasonally Adjusted Data
           
        Change from
  June May June May June
  2019 2019 2018 2019 2018
           
Civilian labor force 1,718,100 1,714,000 1,685,500 4,100 32,600
Unemployment 41,400 40,700 42,200 700 -800
Unemployment rate 2.4% 2.4% 2.5% 0.0 -0.1
Employment 1,676,700 1,673,300 1,643,300 3,400 33,400
           
U.S. unemployment rate 3.7% 3.6% 4.0% 0.1 -0.3
           
Nonfarm Employment in Iowa, Seasonally Adjusted Data
           
Total Nonfarm Employment 1,594,900 1,589,300 1,584,500 5,600 10,400
Mining 2,500 2,600 2,500 -100 0
Construction 78,300 77,400 77,900 900 400
Manufacturing 230,500 228,500 222,400 2,000 8,100
Trade, transportation and utilities 311,600 310,800 312,800 800 -1,200
Information 20,800 21,000 22,100 -200 -1,300
Financial activities 108,500 109,000 109,100 -500 -600
Professional and business services 140,500 141,800 140,300 -1,300 200
Education and health services 236,200 236,100 235,000 100 1,200
Leisure and hospitality 143,700 143,200 143,600 500 100
Other services 59,700 58,100 57,700 1,600 2,000
Government 262,600 260,800 261,100 1,800 1,500
 (above data subject to revision)          

 

Unemployment Insurance Claims for Iowa
           
        % Change from
  June May June May June
  2019 2019 2018 2019 2018
           
Initial claims 8,759 10,304 9,259 -15.0% -5.4%
Continued claims          
     Number of claimants 17,647 20,268 17,161 -12.9% 2.8%
     Weeks paid 54,285 67,527 54,168 -19.6% 0.2%
     Amount paid $20,421,079 $26,196,736 $19,799,009 -22.0% 3.1%

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