Iowa’s seasonally adjusted unemployment rate stayed at 3.2% in September, the fifth month in a row at that level, and slightly above the 3.1% rate recorded a year earlier. The state continues to outperform the nation, where the jobless rate rose to 4.2%, according to figures released Thursday by Iowa Workforce Development.

The report showed a shrinking pool of workers. The number of unemployed Iowans rose by about 1,000 to 55,700, while employment fell to 1,665,500, a drop of 4,100 from August and 19,800 from a year ago. Labor force participation slipped to 66.9%, down from 67.8% a year earlier, which the agency attributed to retirements and people going back to school.

Iowa businesses added 1,800 jobs in September, bringing nonfarm employment to 1,587,400 and marking a second straight monthly gain. Government led the way with 1,400 new jobs, driven by heavier-than-expected hiring at K-12 schools, while accommodation and food services also added 1,400. Retail trade lost 600 jobs and manufacturing shed 400.

Check out the full report here.