Iowa Labor Force Grows to 67.9%, Unemployment Steady at 3.4%

Iowa’s Labor Force Participation Grows to 67.9 Percent; Unemployment Steady at 3.4 Percent

• Wednesday, April 8, 2026

• Press Release

Iowa Workforce Development Communications
For Immediate Release
Date: April 8, 2026
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov

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Iowa’s Labor Force Participation Grows to 67.9 Percent; Unemployment Steady at 3.4 Percent

DES MOINES, IOWA - Iowa added 6,400 jobs and increased its Labor Force Participation Rate to 67.9 percent in January. December’s Labor Force Participation Rate, previously reported at 67.7 percent, was also revised upward to 67.9 percent amid an annual revision of labor statistics. Meanwhile, the state’s seasonally adjusted unemployment rate, which had been revised downward to 3.4 percent for December, held steady at that level in January. The U.S. unemployment rate decreased to 4.3 percent in January.

The total number of unemployed Iowans decreased to 59,100 in January from 59,900 in December. The total number of Iowans with jobs rose to 1,684,700 in January. This figure is 800 higher than December and 17,000 higher than one year ago.

“The good news from the January report is the continued increase in the number of Iowans participating in the workforce, the total number of Iowans working and the increase in jobs added within the state," said Beth Townsend, Executive Director of Iowa Workforce Development. “Construction added 1,300 jobs, manufacturing added 1,000 jobs and education and health services added 1,100 jobs. Iowa employers continue to hire, and there are over 52,000 new opportunities posted on IowaWORKS.gov for Iowans looking for a job or a new career.”

The last five years of monthly labor force data (2021-2025) recently were revised as required by the U.S. Department of Labor, Bureau of Labor Statistics. This “benchmarking” is the periodic process of re-estimating statistics as more complete data becomes available, such as updated data from the U.S. Census Bureau. Prior-year estimates for the Current Employment Statistics (CES) and Local Area Unemployment Statistics (LAUS) programs – key statistical measures of employment – are benchmarked annually. Revised data are incorporated in January employment statistics with this release.

Seasonally Adjusted Nonfarm Employment

Iowa establishments gained 6,400 jobs in January, raising total nonfarm employment to 1,584,400 jobs. The monthly gain was predominantly in private industry (+5,000), although government added 1,400 jobs, primarily in the form of student employment at state colleges. Both service and goods-producing industries advanced in January, gaining 4,000 jobs and 2,400 jobs, respectively. Despite the gains, annual employment is down compared to last year (-15,300). Private industry has pared 13,500 jobs, while government has shed 1,800.

Professional and business services added the most jobs in January (+1,800). Most of those jobs gained stemmed from administrative support and waste management industries (+1,600). This includes temporary help, landscaping, and building maintenance. Construction also added jobs to begin the year (+1,300). This sector gained 2,100 jobs during the fourth quarter of last year following little movement during the first three quarters. Manufacturing added 1,000 jobs with most being in nondurable goods factories (+700). Most sectors added jobs to begin the year; however, losses were evident in other services (-500) and leisure and hospitality (-200).

Compared to last January, trade, transportation, and utilities have shed a combined 6,900 jobs to lead all super sectors. All segments of this super sector have lost jobs with retail losing the most (-2,800). This sector steadily trended down throughout last year. Wholesale trade has a similar story, losing 2,000 jobs since last January. Leisure and hospitality industries are down 6,100 jobs. Accommodations and food services are responsible for much of this decline (-4,000). Manufacturing has shed 4,200 jobs over the past 12 months. Most of the loss was within durable goods factories (-3,400). Alternatively, health care and social assistance has been a bright spot within the state’s economy, gaining 3,100 jobs over the past 12 months. Administrative support and waste management has also fared well annually (+2,300), so has educational services (+1,700).

| Employment and Unemployment in Iowa, Seasonally Adjusted Data | | | | | |
| --- | | | | | |
| | | | | | |
| | | | | Change from | |
| | January | December | January | December | January |
| | 2026 | 2025 | 2025 | 2025 | 2025 |
| | | | | | |
| Civilian labor force | 1,743,800 | 1,743,800 | 1,728,800 | 0 | 15,000 |
| Unemployment | 59,100 | 59,900 | 61,000 | -800 | -1,900 |
| Unemployment rate | 3.4% | 3.4% | 3.5% | 0.0 | -0.1 |
| Employment | 1,684,700 | 1,683,900 | 1,667,700 | 800 | 17,000 |
| Labor Force Participation Rate | 67.9% | 67.9% | 67.6% | 0.0 | 0.3 |
| | | | | | |
| U.S. unemployment rate | 4.3% | 4.4% | 4.0% | -0.1 | 0.3 |
| | | | | | |
| Nonfarm Employment in Iowa, Seasonally Adjusted Data | | | | | |
| | | | | | |
| Total Nonfarm Employment | 1,584,400 | 1,578,000 | 1,599,700 | 6,400 | -15,300 |
| Mining | 2,300 | 2,200 | 2,200 | 100 | 100 |
| Construction | 85,000 | 83,700 | 84,200 | 1,300 | 800 |
| Manufacturing | 215,100 | 214,100 | 219,300 | 1,000 | -4,200 |
| Trade, transportation and utilities | 305,000 | 304,700 | 311,900 | 300 | -6,900 |
| Information | 17,400 | 17,300 | 18,200 | 100 | -800 |
| Financial activities | 104,400 | 104,400 | 105,700 | 0 | -1,300 |
| Professional and business services | 144,600 | 142,800 | 143,900 | 1,800 | 700 |
| Education and health services (private) | 248,200 | 247,100 | 243,400 | 1,100 | 4,800 |
| Leisure and hospitality | 138,300 | 138,500 | 144,400 | -200 | -6,100 |
| Other services | 54,700 | 55,200 | 55,300 | -500 | -600 |
| Government* | 269,400 | 268,000 | 271,200 | 1,400 | -1,800 |
| ** Includes publicly owned education and health services* | | | | | |
| Data Above Subject to Revision | | | | | |

| Unemployment Insurance Claims for Iowa | | | | | |
| --- | | | | | |
| | | | | | |
| | | | | % Change from | |
| | January | December | January | December | January |
| | 2026 | 2025 | 2025 | 2025 | 2025 |
| | | | | | |
| Initial claims | 13,195 | 23,026 | 15,581 | -42.7% | -15.3% |
| Continued claims | | | | | |
| Benefit recipients | 27,653 | 20,535 | 35,588 | 34.7% | -22.3% |
| Weeks paid | 82,990 | 63,143 | 114,389 | 31.4% | -27.4% |
| Amount paid | $44,935,629 | $33,679,491 | $61,284,671 | 33.4% | -26.7% |
MEDIA ALERT: Local data for January 2026 is available on the IWD website. Statewide data for February 2026 will be released on April 22, 2026.

Visit iowalmi.gov for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.