Iowa jobs, unemployment rate steady in July

DES MOINES, Iowa – Iowa payroll jobs held relatively steady in July, along with the 3.7% unemployment rate.

Preliminary July job data for the state released Thursday by Iowa Workforce Development showed little major change, as nonfarm, or payroll, jobs rose by 300 – about 3,600 below the July 2024 levels. The unemployment rate stayed at 3.7% compared with a 3.1% rate in July 2024.

The July job data released Thursday by Iowa Workforce Development offered few bright spots. Nonfarm jobs stood at 1,591,500 compared to a slightly revised estimate of 1,591,200 for June (up 500 from the preliminary estimate released last month).

IWD Director Beth Townsend in the department news release noted the over-the-year payroll decline in manufacturing jobs, which are down 5,400 from July 2024, or 2.4%.

Four of the 11 major job categories rose in July – manufacturing at 600, education and health services at 2,100, leisure and hospitality at 1,400, and “other” services at 200. Five categories showed slight declines – trade and transportation at 1,200, information at 100, financial activities at 800, professional and business services at 1,000, and government at 900.

“Long-term comparisons from these monthly job reports usually are the most helpful in understanding trends in the Iowa economy,” said Mike Owen, deputy director Common Good Iowa. “In general, those trends show Iowa job numbers have largely recovered from the COVID-19 recession of February-April 2020, when jobs dropped by 176,500.”

Iowa passed the pre-recession jobs peak of 1,590,300 (December 2019) in April 2023 and has been at or above that level for all but one month since. Over that time, the most significant change among the four largest job sectors is a 3% drop in manufacturing jobs. But construction jobs are up over 10,000 jobs, a 13% increase, in continuing recovery from the pandemic.

The July numbers are preliminary and adjustments may be reflected in next month’s report.

For the IWD release, click here: https://workforce.iowa.gov/press-release/2025-08-14/iowas-unemployment-rate-holds-37-percent-july

For seasonally adjusted nonfarm data by industry, find the Current Employment Statistics link on this page: https://workforce.iowa.gov/labor-market-information/indicators/ces

Common Good Iowa is a nonpartisan policy and analysis organization that uses reliable, transparent data sources to provide competent analysis and craft people-centered policy solutions for Iowans. CGI is based in Des Moines, with information available on its website, www.commongoodiowa.org.

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