Iowa’s Unemployment Rate Holds at 3.7 Percent in July

Iowa Workforce Development Communications
For Immediate Release
Date: August 14, 2025
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov

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DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate held steady at 3.7 percent in July. Iowa’s jobless rate was 3.1 percent one year ago. The U.S. unemployment rate increased to 4.2 percent in July.

The total number of unemployed Iowans increased to 64,900 in July from 63,700 in June.

The total number of working Iowans increased to 1,672,600 in July. This figure is 600 higher than June and 11,000 higher than one year ago. Meanwhile, Iowa’s labor force participation rate held steady at 67.4 percent.

“Iowa’s economy in July saw the unemployment rate hold steady. 600 more Iowans were employed than the previous month and businesses added several hundred jobs,” said Beth Townsend, Executive Director of Iowa Workforce Development. “The fact that 11,000 more Iowans are working than the same time a year ago is a good sign given the job losses we’ve seen in manufacturing. There remain over 50,000 open jobs on IowaWORKS.gov, which means significant opportunities exist for Iowans who are looking for a new or next great job.”

Seasonally Adjusted Nonfarm Employment

Iowa’s business establishments added 300 jobs in July, elevating total nonfarm employment to 1,591,500. This minor increase comes in the wake of losses totaling 7,300 over the prior two months. Private industry was responsible for the gains this month as government (-900) decreased largely at the local level. Following this slight monthly increase, total nonfarm employment is down 3,600 jobs over the past 12 months. Private service industries continue to fuel this loss.

Education services led all sectors in jobs added in July (+2,600). This sector pared 3,300 jobs over the prior two months and has shown little trend annually. Education is down slightly versus last July (-400). Leisure and hospitality added 1,400 jobs. Gains were nearly even between arts, entertainment, and recreation (+600) and accommodations and food services (+800). The gains could be attributed in part to shifting seasonality following weak seasonal hiring in June. Manufacturing increased in both durable and non-durable goods in July, adding a total of 600 jobs. This is the first monthly increase for manufacturing since a gain of 300 jobs in March.

On the other hand, trade industries – retail and wholesale – collectively lost 1,900 jobs since June. Wholesale trade has fared worse with losses outpacing retail by a 2:1 margin in July. This sector has lost 3,800 jobs since February. Professional and business services shed 1,000 jobs. Most of these losses were from administrative support and waste management service industries.

Annually, total nonfarm employment is down 3,600 jobs. Manufacturing leads all sectors in jobs shed (-5,400). Durable goods factories are responsible for virtually all jobs shed. Non-durable goods factory payrolls are little changed since last July. Professional and business services is down 4,900 jobs and leisure and hospitality is down 4,400 jobs despite an increase this month. Health care and social assistance leads all sectors in jobs added (+6,400). Prior to this month, this sector last shed jobs in September. Construction is up 4,700 jobs versus last July. This sector showed little change since June; however, this sector is up 6,500 jobs since January.

Employment and Unemployment in Iowa, Seasonally Adjusted Data

				Change from
	July	June	July	June	July
	2025	2025	2024	2025	2024

Civilian labor force	1,737,500	1,735,700	1,715,400	1,800	22,100
Unemployment	64,900	63,700	53,900	1,200	11,000
Unemployment rate	3.7%	3.7%	3.1%	0.0	0.6
Employment	1,672,600	1,672,000	1,661,600	600	11,000
Labor Force Participation Rate	67.4%	67.4%	67.0%	0.0	0.4

U.S. unemployment rate	4.2%	4.1%	4.2%	0.1	0.0

Nonfarm Employment in Iowa, Seasonally Adjusted Data

Total Nonfarm Employment	1,591,500	1,591,200	1,595,100	300	-3,600
Mining	2,100	2,100	2,300	0	-200
Construction	89,100	89,100	84,400	0	4,700
Manufacturing	216,300	215,700	221,700	600	-5,400
Trade, transportation and utilities	309,100	310,300	312,500	-1,200	-3,400
Information	18,000	18,100	17,900	-100	100
Financial activities	103,800	104,600	106,000	-800	-2,200
Professional and business services	140,800	141,800	145,700	-1,000	-4,900
Education and health services (private)	246,400	244,300	240,400	2,100	6,000
Leisure and hospitality	139,500	138,100	143,900	1,400	-4,400
Other services	57,100	56,900	55,600	200	1,500
Government*	269,300	270,200	264,700	-900	4,600
* includes education and health services (public)
Data Subject to Revision

Unemployment Insurance Claims for Iowa

				% Change from
	July	June	July	June	July
	2025	2025	2024	2025	2024

Initial claims	9,494	10,350	11,523	-8.3%	-17.6%
Continued claims
Benefit recipients	13,830	11,328	16,430	22.1%	-15.8%
Weeks paid	39,670	34,115	46,487	16.3%	-14.7%
Amount paid	$20,011,773	$17,333,493	$22,972,554	15.5%	-12.9%

MEDIA ALERT: Local data for July 2025 will be posted to the IWD website on Tuesday, August 19, 2025. Statewide data for August 2025 will be released on Thursday, September 18, 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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