Iowa's seasonally adjusted unemployment rate remained at 3.2 percent in September for the fifth consecutive month, Iowa Workforce Development said Thursday. That is up from 3.1 percent a year ago. The national rate rose to 4.2 percent in September.
The total number of unemployed Iowans rose to 55,700 in September, up from 54,700 in August. The number of working Iowans fell to 1,665,500, which is 4,100 lower than August and 19,800 lower than a year ago.
The state's labor force participation rate slipped to 66.9 percent in September, down from 67.0 percent in August and 67.8 percent a year ago. The agency attributed the decline to a mix of retirements and workers returning to education.
"September's report saw employment in healthcare and construction grow to the highest employment levels ever recorded," said Beth Townsend, executive director of Iowa Workforce Development. "Accommodations and food services also added 1,400 jobs in September. For individuals looking for their next job or their next great career opportunity, more than 60,000 jobs remain open on IowaWorks.gov, and employers are hiring. This is the perfect time to take advantage of opportunities in Iowa."
Nonfarm employment
Iowa establishments added 1,800 jobs in September, lifting total nonfarm employment to 1,587,400. It was the second straight monthly increase, following a gain of 2,200 jobs in August.
Government added 1,400 jobs as local K-12 schools increased staffing more than expected to begin the school year. Private industry rose by 400 jobs, with gains in the service industries. Goods-producing firms were largely unchanged, as a gain of 200 in construction was offset by a loss of 400 in non-durable goods manufacturing.
Accommodation and food services led all private sectors with 1,400 jobs added, driven by restaurants, bars and food service contractors. Professional and business services gained 500 jobs, its first increase since May, and finance and insurance added 500 jobs.
Losses were highest in retail trade, down 600 jobs, partly from food and beverage retailers such as grocery stores. Arts, entertainment and recreation shed 500 jobs, and manufacturing lost 400 jobs tied to reductions at food-producing firms.
Over the past year
Over the past 12 months, Iowa firms have gained 4,000 jobs. Health care and social assistance led all industries with 5,500 jobs added, followed by construction with 3,300 and finance and insurance with 1,800.
The largest annual losses came in transportation and warehousing, down 3,600 jobs over the year, including 1,900 in the last five months. Arts, entertainment and recreation lost 2,300 jobs, and professional and business services shed 2,000.
Unemployment insurance
Initial unemployment claims totaled 5,508 in September, up 1.7 percent from August but down 8.4 percent from a year ago. Benefit recipients numbered 9,479, and the amount paid was about $14.1 million, down 20.3 percent from August.
Upcoming data
Iowa Workforce Development said local data for September 2026 will be posted Tuesday, Oct. 20. Statewide data for October 2026 will be released Nov. 19. More information is available at iowalmi.gov. Iowans seeking help with unemployment insurance can call 1-866-239-0843 or email uiclaimshelp@iwd.iowa.gov.
Source: the original release