Iowa’s Labor Force Participation Holds Steady as 1,700 Iowans Enter the Workforce

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

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DES MOINES, IOWA – Iowa’s labor force participation rate held steady at 67.0 percent in March as 1,700 Iowans entered the labor force. The state’s seasonally adjusted unemployment rate was 3.4 percent in March, up slightly from 3.3 percent in February. Meanwhile, the U.S. unemployment rate increased to 4.2 percent in March.

The total number of working Iowans increased to 1,664,000 in March, up 400 from February and 2,400 higher than one year ago. The total number of unemployed Iowans increased to 58,600 in March from 57,300 in February.

“March’s report shows increased hiring in key industries such as construction, transportation, and healthcare, while other areas with more temporary workers pulled back,” said Beth Townsend, Executive Director of Iowa Workforce Development. “There remains over 50,000 open jobs in Iowa, and the IowaWORKS career planners and Reemployment Case Management team can help Iowans who are looking for work find available jobs and learn how to best position themselves in a competitive job market.”

Seasonally Adjusted Nonfarm Employment

Job growth from Iowa firms in March was led primarily from the sectors of construction, education and health services, and trade, transportation and utilities, which collectively added 1,500 jobs. Overall, goods-producing industries increased slightly (+200), while government employment was little changed since February. Overall, Iowa firms shed 1,500 jobs in March, lowering total nonfarm employment to 1,592,300. This loss was largely attributed to private service industries lowering staffing levels. In the wake of the March report, Iowa firms have now shed 11,800 jobs over the past 12 months.

Jobs gains in March were led by construction (+500). This increase follows another small gain in February. Health care and social assistance was also up in March (+500) and was fueled by services for the elderly and disabled. This sector continues the trend upward and has gained jobs in six consecutive months, adding 3,900 jobs over that span. Transportation, warehousing, and utilities gained 400 jobs. Trucking and delivery industries were responsible for most of these jobs added. Administrative support and waste management pared 1,200 jobs in March to lead all private sectors, which fueled a combined loss of 2,000 jobs in professional and business services. Professional, scientific, and technical firms also shed 600 jobs. Leisure and hospitality lost 900 jobs. These losses were evenly split between recreational industries and accommodation and food services.

While trailing last year’s mark by 4,200, construction has added jobs in three of the last four months, gaining 1,300 jobs over that span. Health care and social assistance employers are up 5,900 jobs annually, and have continued to expand compared to last year’s mark. Manufacturing has shed the most jobs (-8,000) over the past 12 months, most of which stem from durable goods factories (-5,900). Professional and business services are also down since last year (-5,000), fueled by losses in administrative support and waste management. 

Employment and Unemployment in Iowa, Seasonally Adjusted Data
				Change from
	March	February	March	February	March
	2025	2025	2024	2025	2024
Civilian labor force	1,722,600	1,720,900	1,708,500	1,700	14,100
Unemployment	58,600	57,300	46,900	1,300	11,700
Unemployment rate	3.4%	3.3%	2.7%	0.1	0.7
Employment	1,664,000	1,663,600	1,661,600	400	2,400
Labor Force Participation Rate	67.0%	67.0%	67.0%	0.0	0.0
U.S. unemployment rate	4.2%	4.1%	3.9%	0.1	0.3
Nonfarm Employment in Iowa, Seasonally Adjusted Data
Total Nonfarm Employment	1,592,300	1,593,800	1,604,100	-1,500	-11,800
Mining	2,200	2,200	2,300	0	-100
Construction	83,400	82,900	87,600	500	-4,200
Manufacturing	217,200	217,500	225,200	-300	-8,000
Trade, transportation and utilities	313,000	312,300	312,500	700	500
Information	17,800	17,700	18,100	100	-300
Financial activities	105,100	105,200	106,500	-100	-1,400
Professional and business services	141,500	143,500	146,500	-2,000	-5,000
Education and health services	244,500	244,200	239,600	300	4,900
Leisure and hospitality	142,000	142,900	143,500	-900	-1,500
Other services	56,500	56,300	55,500	200	1,000
Government	269,100	269,100	266,800	0	2,300
Data Subject to Revision

Unemployment Insurance Claims for Iowa
				% Change from
	March	February	March	February	March
	2025	2025	2024	2025	2024
Initial claims	8,502	9,255	8,726	-8.1%	-2.6%
Continued claims
Benefit recipients	27,209	28,012	21,295	-2.9%	27.8%
Weeks paid	79,773	91,781	62,946	-13.1%	26.7%
Amount paid	$43,186,419	$50,245,746	$32,901,693	-14.0%	31.3%

MEDIA ALERT: Local data for March 2025 will be posted to the IWD website on Tuesday, April 22, 2025. Statewide data for April 2025 will be released on Thursday, May 15, 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.