Iowa’s Labor Force Participation Rate Increases to 67.2 Percent as Businesses Add 5,000 Jobs
Iowa Workforce Development Communications
For Immediate Release
Date: May 15, 2025
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov
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DES MOINES, IOWA – Iowa’s labor force participation rate rose to 67.2 percent in April as 5,000 Iowans joined the workforce. Meanwhile, the state’s seasonally adjusted unemployment rate rose to 3.5 percent in April, up slightly from 3.4 percent in March. Iowa’s jobless rate was 2.8 percent one year ago. The U.S. unemployment rate remained at 4.2 percent in April.
The total number of unemployed Iowans increased to 60,600 in April from 58,600 in March.
The total number of working Iowans increased to 1,667,100 in April. This figure is 3,000 higher than in March and 4,500 higher than one year ago. The labor force participation rate increased to 67.2 percent from 67.0 percent in March.
“April’s report showed significant job growth, as well as more Iowans returning to the workforce,” said Beth Townsend, Executive Director of Iowa Workforce Development. “We saw new workers from all age groups coming back into the workforce to take jobs in construction, health care, leisure and hospitality, as well as accounting and tax services. The good news for Iowans coming back into the workforce is that there are still more than 50,000 jobs available at IowaWorks.gov.”
Seasonally Adjusted Nonfarm Employment
Iowa businesses added 5,200 jobs in April, elevating total nonfarm employment to 1,599,200. Private service industries fueled most of the gains with 4,100 jobs added since March, although goods-producing sectors advanced by 800 jobs. Overall, private industry has reduced staffing levels since last April, shedding 6,100 jobs, while total nonfarm employment is down 3,100 jobs for the year.
Professional and business services have gained the most jobs since March (+1,400). This increase is the first since October and was due mostly to professional, scientific, and technical services hiring (+1,100) although administrative support and waste management services also advanced in April (+500). Construction gained 1,300 jobs. This was the third consecutive increase for the sector equating to 2,800 jobs added since January. Leisure and hospitality gained 900 jobs. This increase was due entirely to hiring within arts, entertainment, and recreational industries. Accommodation and food services establishments continued to reduce staffing levels in April and has not added jobs since October. Job losses by sector were light compared to the gains and were limited to trade, transportation, and utilities (-500) and manufacturing (-500). Durable goods losses were responsible for most of those jobs shed within Iowa’s factories.
Annually, job gains have been highest in health care and social assistance (+5,200). Other services are up 2,000 jobs and have steadily trended up over the last 12 months. Government (a sector that includes federal, state, and local political subdivisions, as well as schools, universities, and public hospitals) is up 3,000 jobs annually, with a majority of that increase stemming from hiring within local government entities. Since last April, manufacturing industries have shed the most jobs (-7,400). Durable goods factories have been responsible for most of the jobs pared (-5,400). Professional and business services follows with 3,300 jobs shed annually. These losses are split between both administrative and support services along with professional, scientific, and technical services.
| Employment and Unemployment in Iowa, Seasonally Adjusted Data | |||||
|---|---|---|---|---|---|
| Change from | |||||
| April | March | April | March | April | |
| 2025 | 2025 | 2024 | 2025 | 2024 | |
| Civilian labor force | 1,727,700 | 1,722,700 | 1,710,800 | 5,000 | 16,900 |
| Unemployment | 60,600 | 58,600 | 48,100 | 2,000 | 12,500 |
| Unemployment rate | 3.5% | 3.4% | 2.8% | 0.1 | 0.7 |
| Employment | 1,667,100 | 1,664,100 | 1,662,600 | 3,000 | 4,500 |
| Labor Force Participation Rate | 67.2% | 67.0% | 67.0% | 0.2 | 0.2 |
| U.S. unemployment rate | 4.2% | 4.2% | 3.9% | 0.0 | 0.3 |
| Nonfarm Employment in Iowa, Seasonally Adjusted Data | |||||
| Total Nonfarm Employment | 1,599,200 | 1,594,000 | 1,602,300 | 5,200 | -3,100 |
| Mining | 2,200 | 2,200 | 2,300 | 0 | -100 |
| Construction | 85,400 | 84,100 | 86,300 | 1,300 | -900 |
| Manufacturing | 217,300 | 217,800 | 224,700 | -500 | -7,400 |
| Trade, transportation and utilities | 312,700 | 313,200 | 312,400 | -500 | 300 |
| Information | 18,000 | 17,800 | 18,200 | 200 | -200 |
| Financial activities | 106,000 | 105,300 | 106,500 | 700 | -500 |
| Professional and business services | 143,200 | 141,800 | 146,500 | 1,400 | -3,300 |
| Education and health services | 244,900 | 244,200 | 239,500 | 700 | 5,400 |
| Leisure and hospitality | 142,700 | 141,800 | 144,100 | 900 | -1,400 |
| Other services | 57,500 | 56,800 | 55,500 | 700 | 2,000 |
| Government | 269,300 | 269,000 | 266,300 | 300 | 3,000 |
| Data Subject To Revision | |||||
| Unemployment Insurance Claims for Iowa | |||||
|---|---|---|---|---|---|
| % Change from | |||||
| April | March | April | March | April | |
| 2025 | 2025 | 2024 | 2025 | 2024 | |
| Initial claims | 7,963 | 8,502 | 8,189 | -6.3% | -2.8% |
| Continued claims | |||||
| Benefit recipients | 20,248 | 27,209 | 16,133 | -25.6% | 25.5% |
| Weeks paid | 52,563 | 79,773 | 38,933 | -34.1% | 35.0% |
| Amount paid | $27,862,791 | $43,186,419 | $20,042,169 | -35.5% | 39.0% |
MEDIA ALERT: Local data for April 2025 will be posted to the IWD website on Tuesday, May 20, 2025. Statewide data for May 2025 will be released on Thursday, June 19, 2025.
Visit Iowa Labor Market Information for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.
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