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Iowa Unemployment Holds at 3.2 Percent for Third Straight Month

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Iowa’s unemployment rate stayed at 3.2 percent in July, unchanged from May and June and down from 3.5 percent a year ago, Iowa Workforce Development reported Thursday.

The number of unemployed Iowans fell to 54,700, about 600 fewer than in June. The number of working Iowans also fell, to 1,672,200, which is 2,200 lower than June and 3,100 lower than a year earlier. Labor force participation slipped to 67.1 percent from 67.3 percent as roughly 2,800 people left the workforce, which the agency attributed mostly to retirements and to school-year layoffs landing later than usual.

Iowa businesses shed 3,100 jobs during the month, ending four consecutive months of growth. Local governments accounted for 1,700 of those losses, most tied to K-12 schools going on summer break. Private industry lost about 1,000, concentrated in service sectors. Retail trade gave back 1,300 jobs after adding 3,500 in May and June combined.

Construction was the month’s bright spot, adding 900 jobs, with much of the gain among specialty trade contractors. The sector has added 3,300 jobs over the past year.