The state unemployment rate went up a smidge to 3.5% in April. Beth Townsend, the Iowa Workforce Development director, explained that this uptick is due to more folks hopping back into the job market. She noted, “We had 5,000 Iowans jump back into the workforce, and that’s pretty neat. I mean, sure, the unemployment rate crept up by a tenth of a point, but I’d gladly take that if it means we get 5,000 more peeps joining the workforce every month.”
Manufacturing is still taking a hit, with a loss of 7,400 jobs over the past year. Townsend mentioned, “Throughout all of 2024, we’ve been seeing a decline in manufacturing jobs in Iowa because of the not-so-great state of the economy in 2024. So, it’s gonna be a bit before we bounce back from that.” As for the impact of tariffs on the job market, Townsend admitted, “It’s a bit early to tell. The tariffs only kicked in towards the end of April, so we can’t really say if it’s gonna be a good or bad thing just yet.”
In terms of job gains, private service industries led the way in April, adding around 41,000 new jobs. Townsend pointed out, “We saw some growth in good producing sectors, with an extra 800 jobs. The professional and business services sector saw the most gains, especially in professional, scientific, and technical services, which includes admin support and waste management. Construction also saw a boost, adding 13,000 jobs last month. It’s the third consecutive month of growth, with a total of 2,800 jobs added since the start of the year.” Townsend emphasized the importance of increasing the workforce to keep the economy on an upward trajectory, stating, “If we could bring in 5,000 new Iowans to the workforce every month, that’s 30,000 peeps in six months. That would help us get closer to our pre-pandemic numbers.” The U.S. unemployment rate held steady at 4.2% in April.
