Iowa’s unemployment rate unchanged in May

Although fewer Iowans were working in May, the unemployment rate was unchanged from April at 3.9 percent, according to Iowa Workforce Development.

The number of unemployed Iowans rose to 66,500 in May from 66,200 in April. The estimate is 4,500 higher than the year ago level of 62,000.

The total number of working Iowans declined to 1,644,800 in May, 2,600 lower than April and 8,200 higher than a year ago.

'Consistent with the anemic job report posted nationally, Iowa did not see a decrease in the unemployment rate in May,” Iowa Workforce Development Director Beth Townsend said in a news release. 'Although Iowa's unemployment rate remained at 3.9 percent, Iowa saw a decline in its labor force. The drop may be attributed to a number of factors.

'On the positive side, construction, health services and education continue to lead all job sectors in growth for the year.”

Manufacturing experienced a sharp decline this month in durable goods factories with 2,700 jobs eliminated overall. The sector has been steadily trending down and dealing with reduced demand forecasts for machinery and transportation products.

Construction also experienced a reduction in May of 1,400 jobs. The drop followed very large gains in March and April that saw a combined 6,900 jobs added.

Private industry shed a combined 3,700 jobs and government was reduced by 500. The loss in government was due to drops in local and state government, partially offset by a gain of 200 at the federal level.

Compared with last year, government remains 2,100 jobs ahead.

Other sectors losing jobs last month included professional and business services with a decline of 600 jobs and financial activities with a drop of 500 positions.

Employment gains were sporadic in May, led by 700 jobs in education and health services. Trade and transportation increased with the hiring of 300 people in wholesale and retail trade.