3,900 New Workers in June Boosts Iowa’s Labor Force Participation Rate to 67.4 Percent

Iowa Workforce Development Communications
For Immediate Release
Date: July 17, 2025
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov

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Unemployment Rate Rises Slightly to 3.7 Percent

DES MOINES, IOWA – In June, for the second consecutive month, 3,900 Iowans entered the labor force in June. The increase in workers brought Iowa’s labor force participation rate to 67.4 percent, up from 67.3 percent in May. At the same time, Iowa’s seasonally adjusted unemployment rate rose slightly in June to 3.7 percent (up from 3.6 percent in May), and the U.S. unemployment rate decreased to 4.1 percent.

The total number of working Iowans increased to 1,671,800 in June. This figure is 2,700 higher than May and 8,800 higher than one year ago. 

The total number of unemployed Iowans increased to 63,700 in June from 62,400 in May.

“More Iowans joined the workforce in June, increasing the state's labor force by 3,900, with significant participation increases among women 45 and older,” said Beth Townsend, Executive Director of Iowa Workforce Development. “Healthcare and construction accounted for more than 3,700 of the new jobs following a trend for both industries in 2025.  With over 51,000 jobs posted on IowaWORKS.gov, anyone looking for a new or better job remains in a good position to find one.”

Seasonally Adjusted Nonfarm Employment

Iowa businesses shed 2,700 jobs in June, lowering total nonfarm employment to 1,590,700. Private service industries were responsible for all the movement as both goods-producing industries and government entities changed little since May. June’s loss follows a drop of 5,100 jobs in May with the largest declines being in leisure and hospitality, administrative support and waste management, and manufacturing. However, these losses were partially offset by gains in health care and construction. Following this June report, total nonfarm employment trails last June’s mark by 6,800 jobs. Private industry has fueled these annual losses.

Leisure and hospitality shed the most jobs in June (-5,200). Arts, entertainment, and recreation shed 2,800 jobs, and accommodations and food services lost 2,400 jobs. This super sector has pared jobs in three of the last four months and may be evidence of consumers reigning in discretionary spending. Administrative support and waste management shed 900 jobs following a loss of 1,500 in May. This sector has shed 2,800 jobs since February. Manufacturing continued to decline in June, dropping by 800 jobs. These losses were evenly split between durable and non-durable goods factories. On the other hand, job gains were highest in health care and social assistance (+2,800). This sector continues to expand, and the gains were highest in ambulatory health care services – chiefly offices of physicians, dentists, and other health practitioners. Construction continues to expand and gained 1,000 jobs since May. This sector has now added 6,100 jobs since January. Smaller gains in June included retail trade (+500) and transportation, warehousing, and utilities (+400).

Over the past 12 months, health care and social assistance has gained the most jobs (+7,500). Gains were highest in nursing and residential facilities along with social assistance. Construction is up 3,700 jobs following the June gain. This sector has trended up since January, gaining 6,100 jobs during that span. Alternatively, job losses continue to be highest in manufacturing (-9,100). Those subsectors most affected are machinery manufacturing, fabricated metal production, and food production. Leisure and hospitality trails last year’s level by 6,700 jobs. Losses in arts, entertainment and recreational industries were responsible for a majority of the jobs shed (-3,500).

Employment and Unemployment in Iowa, Seasonally Adjusted Data
				Change from
	June	May	June	May	June
	2025	2025	2024	2025	2024
Civilian labor force	1,735,500	1,731,600	1,714,800	3,900	20,700
Unemployment	63,700	62,400	51,800	1,300	11,900
Unemployment rate	3.7%	3.6%	3.0%	0.1	0.7
Employment	1,671,800	1,669,100	1,663,000	2,700	8,800
Labor Force Participation Rate	67.4%	67.3%	67.1%	0.1	0.3
U.S. unemployment rate	4.1%	4.2%	4.1%	-0.1	0.0
Nonfarm Employment in Iowa, Seasonally Adjusted Data
Total Nonfarm Employment	1,590,700	1,593,400	1,597,500	-2,700	-6,800
Mining	2,100	2,200	2,300	-100	-200
Construction	88,700	87,700	85,000	1,000	3,700
Manufacturing	215,600	216,400	224,700	-800	-9,100
Trade, transportation and utilities	310,600	310,200	312,800	400	-2,200
Information	18,100	18,100	18,000	0	100
Financial activities	104,800	105,000	106,200	-200	-1,400
Professional and business services	141,700	141,800	146,100	-100	-4,400
Education and health services	245,800	243,100	239,100	2,700	6,700
Leisure and hospitality	136,600	141,800	143,300	-5,200	-6,700
Other services	56,900	57,400	55,400	-500	1,500
Government	269,800	269,700	264,600	100	5,200
Date Subject to Revision

Unemployment Insurance Claims for Iowa
				% Change from
	June	May	June	May	June
	2025	2025	2024	2025	2024
Initial claims	10,350	7,456	9,334	38.8%	10.9%
Continued claims
Benefit recipients	11,328	16,723	11,687	-32.3%	-3.1%
Weeks paid	34,115	40,281	31,548	-15.3%	8.1%
Amount paid	$17,333,493	$21,363,238	$15,498,981	-18.9%	11.8%

MEDIA ALERT: Local data for June 2025 will be posted to the IWD website on Tuesday, July 22, 2025. Statewide data for July 2025 will be released on Thursday, August 14, 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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