DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate dropped to 3.2 percent in May, down from 3.3 percent in April and 3.6 percent one year ago. Meanwhile, the U.S. unemployment rate remained at 4.3 percent in May.
The total number of unemployed Iowans decreased to 56,100 in May from 57,200 in April.
The total number of working Iowans decreased to 1,676,100 in May. This figure is 1,800 lower than April and 1,600 higher than one year ago. Iowa’s labor force participation rate fell to 67.4 percent in May from 67.5 percent in April.
“With five months of 2026 data now available, the emerging trend is one of slow-but-steady growth in Iowa hiring,” said Beth Townsend, Executive Director of Iowa Workforce Development. “Employers across most Iowa industries are adding jobs on a regular basis even as unemployment insurance claims hover at near-record lows and the state’s Unemployment Insurance Trust Fund has a balance of more than $2.1 billion. At the same time, more than 57,000 unfilled jobs are posted on IowaWORKS.gov, so opportunity remains for anyone who’s looking to find a better position or embrace a new career.”
Seasonally Adjusted Nonfarm Employment
Businesses in Iowa added 3,400 jobs in May, lifting total nonfarm employment to 1,584,500 jobs. This is the third consecutive gain as the state has added 8,200 jobs since February. The primary driver of these job gains is private service industries. Goods-producing firms, primarily construction and manufacturing, have lost 400 jobs during that same time frame. Government has gained 800 jobs at the local level but is down 1,600 jobs compared to last year, while private industries trail by 10,000 jobs.
Retail trade added the most jobs in May (+1,700). This is the first sizable gain of the year for this sector and the result of hiring in several industries including outdoor power equipment dealers, supermarkets, hardware stores, and car dealers, among others. Professional, scientific, and technical firms gained 900 jobs. This is the first increase since June of last year for this sector. Durable goods manufacturing increased by 600 jobs. Foundries and metal product production helped fuel this growth. This gain, however, was offset partially by a loss of 400 jobs in nondurable goods factories. Firms involved in food production drove this loss. Nondurable goods shops have pared 1,500 jobs since January. Other services shed 500 jobs. This sector has not shown any marked trend over the past 12 months. Health care and social assistance decreased by 500 since April. Losses for this sector are unusual given the steady demand for services within health care industries. The only other losses were small in magnitude and were construction (-400) and administrative support and waste management (-400).
Annually, the state has shed 11,600 jobs since last May. Trade and transportation industries are down 6,100 jobs. Trade industries are responsible for 4,000 jobs shed, and transportation, warehousing, and utilities have lost 2,100 jobs. Manufacturing is down 3,800 jobs over the past 12 months. Factories involved with nondurable goods production have shed most of the jobs lost (-2,200). Conversely, health care and social assistance has added the most jobs annually despite minor losses over the past couple months (+3,200). Construction also experienced a small loss in May yet remains up 1,700 jobs. This sector had previously shown an upward trend since October of last year.
