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Iowa Unemployment Rate at 5.2 Percent

DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate increased slightly in June to 5.2. The current rate compares with 5.1 percent in May, and 6.0 percent in June 2011. Meanwhile, the U.S. unemployment rate for June remained at 8.2 percent.

“Despite the large seasonal drop in local education employment, the private sector created 3,100 jobs in June,” said Teresa Wahlert, director of Iowa Workforce Development. “Professional and business services led the month’s job growth with a gain of 3,000 jobs.”

The number of unemployed Iowans rose slightly to 85,600 in June from 85,000 in May. The current estimate of unemployed is 14,700 below the year ago level of 100,300.

Total employment decreased to 1,573,400 in June from 1,578,000 in May, but is 12,900 higher than the year ago figure of 1,560,500.


Seasonally Adjusted Nonfarm Employment
Iowa’s total nonfarm employment shed 2,400 jobs in June, bringing the monthly total to 1,491,400. Although the private sector continued to add jobs in June, these gains were offset by a large drop in local government employment. Local government decreased by 5,300 in June as workers in education began their summer breaks.

After losing jobs in May, professional and business services added more jobs in June than any other sector, up 3,000. This gain was largely due to an increase in administrative and support and waste services (2,500), which includes temporary help and landscaping services. Manufacturing also rebounded this month, and posted a gain of 1,500 in durable goods. Other job gains were reflected in wholesale trade (1,100), leisure and hospitality (1,000) and financial activities (600). Construction lost the most jobs in the private sector, down 2,300. The sector lost momentum over the past couple of months after reaching a current-year employment peak of 69,100 in April. Retail trade dropped by 1,600 in June, and education and health services declined by 700.

Compared to June of last year, Iowa has added 20,600 jobs. Manufacturing led the annual job growth, up 11,900, and construction ranked second with a gain of 4,400 jobs. Combined, the two goods-producing sectors accounted for approximately four out of every five jobs added since last June. Other large gains occurred in leisure and hospitality (2,300), finance (2,200) and other services (2,200). Government pared more jobs than any other sector, down 2,600 over the year. Trade and transportation incurred the largest loss in the private sector, down 2,400. Most of the loss in the sector was centered in retail trade.


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