DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate dropped to 2.5 percent in July, down from 2.6 percent in June and 4.4 percent one year ago. The U.S. unemployment rate decreased to 3.5 percent in July.

The number of unemployed Iowans decreased to 43,300 in July from 43,900 in June. The total number of working Iowans increased to 1,667,200 in July. This figure is 1,800 higher than June and 58,600 higher than one year ago.

Overall, the state’s labor force participation rate remained at 67.8 percent in July, despite 1,400 Iowans rejoining the labor force. Iowa added a total of 3,800 jobs.

“July’s good news shows that, despite current national economic challenges, Iowa’s economy continues its positive direction,” said Beth Townsend, Director of Iowa Workforce Development. “We are helping workers find new career pathways, and we remain laser focused on reemployment so we can help every Iowan find the right job and every employer find a qualified workforce.”

Seasonally Adjusted Nonfarm Employment

Iowa total nonfarm payroll employment advanced by 3,800 jobs in July. This monthly gain was the fourth consecutive increase and was largely due to service industries bolstering payrolls, particularly within professional and business services and health care. While private services again took a step forward this month (+3,100), government also added jobs primarily at the local level and related to temporary summer programs (+700). Following the gain, government now stands 6,100 above last year’s mark while the state is up 33,900 jobs.

Health care and social assistance added the most jobs of any sector in July, gaining 1,300 jobs from June. This sector has been slow to recover since the pandemic began, but growth has been evident in 2022 with 2,300 jobs gained this year. Administrative support, waste management, and remediation industries added 1,000 jobs in July. Much of this increase was fueled by hiring of seasonal staff to help with services to buildings and dwellings, specifically landscaping. Manufacturing added jobs this month (+800) with gains in both durable and nondurable goods factories. This sector continues to trend upward and has added 6,700 jobs in 2022 thus far. Conversely, job losses were most evident in retail trade in July (-800), particularly for miscellaneous store retailers. This decline now marks the fifth straight loss with 3,900 jobs pared during that span. All other losses were sparse in July with small drops in construction (-300), financial activities (-200), and leisure and hospitality (-200).

Over the past 12 months, Iowa firms have added 33,900 jobs. Despite little movement this month, leisure and hospitality has gained the most jobs (+10,100). Accommodations and food services alone are up 8,800 jobs. Manufacturing is now up 7,700 with hiring being slightly greater in nondurable goods factories (+4,600). Food manufacturing, particularly slaughtering and meat packing, has been especially robust. Trade, transportation, and utilities are up 5,000 with hiring being particularly strong in transportation and warehousing.

By Radio Iowa Contributor

While parts of Iowa saw up to two inches of rain on Monday, it may be too little, too late for many of the crops that have been critically damaged by the long string of hot, dry days.

Meteorologist Dennis Todey, director of the U.S.D.A.’s Midwest Climate Hub in Ames, says there are big differences in corn crop conditions across the region, especially compared to areas in northwest Iowa that are in extreme drought. “We really have done the damage already and things are looking pretty bleak in some places,” Todey says. “We have some places that we could maybe still help limp through a little bit, but it’s interesting because, in contrast, you go up to northeast South Dakota or eastern Iowa, parts of Minnesota, conditions are pretty good.”

While any more rain that falls on Iowa this week may green up our lawns a bit, Todey says precipitation at this stage on the calendar will be of limited help to farmers. “There are still some chances for some rainfall, some hit-and-miss rainfalls, that could help some soybeans still, but we’re late enough now, the chances of being able to help much are not great,” Todey says. “Then the overall outlooks, they’re not terribly optimistic for great improvement.”

The latest map from the U.S. Drought Monitor shows moderate drought now stretches all the way from Iowa’s eastern border to the western border and that about 64 of the state’s 99 counties are in some form of drought.  “The other thing we’re concerned about now is starting to look towards fall soil moisture recharge,” Todey says. “We’re going to need some rainfalls in the fall to get some moisture back in the soils.”

The climate outlooks show above-normal temperatures and below-normal rain for most of the region through much of September.