Iowa’s seasonally adjusted unemployment rate rose slightly to 6.7 percent in October from a revised September rate of 6.6 percent.  The statewide jobless rate was reported at 4.3 percent in October 2008.  Iowa’s unemployment rate continues to compare favorably with the U.S. rate, which climbed to 10.2 percent in October, surpassing 10.0 percent for the first time in 26 years.   

 

    “Significant economic challenges lie ahead for the state, the October jobs report offered further evidence that the Iowa economy continues to be challenged,” said Elisabeth Buck, director of Iowa Workforce Development.  

 

    The statewide estimate of unemployed workers increased to 112,700 in October from 112,300 in September.  One year ago, the state’s pool of unemployed workers was reported at 71,900. 

 

    The total number of working Iowans decreased to 1,573,400 in October; 6,200 less than the prior month’s level of 1,579,600.  One year ago, total employment stood at 1,604,900, which was 31,500 higher than the current figure.  

 

Seasonally Adjusted Nonfarm Employment

 

    Total nonfarm employment in Iowa increased by 2,300 in October, bringing the total to 1,479,200.  Several of the super sectors showed signs of improvement this month.  The service sectors in particular increased more than expected, adding 2,300.  The good-producing sectors were unchanged, as losses in construction exactly offset the gains in durable goods manufacturing.                                                                                   

 

    Education and health care added the most jobs in October, increasing by 2,000. Health care accounted for the majority of the gain, up 1,300 versus 700 for education.  Professional and business services advanced by 900 this month with the temporary, blue-collar fields representing the major share of the gains.  Other gains in October occurred in finance, up 700; government, up 700; leisure and hospitality, up 500; and manufacturing, up 500.  On the other hand, trade and transportation dropped by 3,000, primarily due to heavy losses in retail trade.

 

    Compared to October 2008, Iowa has lost 43,200 jobs, or 2.8 percent.  In recent months, total nonfarm employment has shown some preliminary signs of recovery.  Education and health continues to lead the over-the-year gains at 4,300.  Manufacturing has shed more jobs than any other sector since last October, down 22,800, but has shown some signs of recovery since the July low of 196,000.  Construction has shed 9,700 jobs, or 13.0 percent—the highest percentage of any sector.  Other losses are reflected in professional and business services, down 7,900; and trade and transportation, down 4,900 since October 2008.