Iowa unemployment rate dips in October

Unexpected decline in leisure, hospitality jobs

By George C. Ford, The Gazette

Iowa's unemployment rate edged lower in October despite a continued loss of jobs in manufacturing and an unexpected decline in leisure and hospitality staffing.

The state's seasonally adjusted jobless rate was 3.5 percent last month, down from 3.6 percent in September. Iowa's unemployment rate was 4.3 percent in October 2014.

'Iowa's economy continues to improve,” said Beth Townsend, director of Iowa Workforce Development, in a news release. 'Total nonfarm employment added jobs for the second consecutive month, and the number of unemployed Iowans continued to trend down.”

The number of unemployed Iowans declined to 60,300 in October from 61,400 in September. The current estimate is 13,500 lower than 73,800 in October 2014.

The total number of working Iowans rose to 1,644,500 in October, 4,000 higher than September and 5,000 higher than a year ago.

The gain in nonfarm employment to 1,577,300 jobs was primarily driven by private services and isolated to only two super sectors. Goods-producing industries pared a combined 1,600 jobs.

Government advanced in October due to larger-than-expected seasonal hiring in local government education and is little changed versus a year ago.

Professional and business services surged ahead in October, the third consecutive month of growth for the sector.

Employment losses in October were small, but evident in most sectors. The exceptions were leisure and hospitality, down 1,900 jobs, and manufacturing with 1,000 fewer positions.

Leisure and hospitality was hampered by a decrease in accommodations and food services staffing and was larger than seasonally expected. Manufacturing pared jobs evenly in durable and nondurable goods factories and shed employment for the consecutive month.

Smaller employment losses were recorded in education and health services (-700), construction (-500), and trade and transportation (-400).

l Comments: (319) 398-8366; george.ford@thegazette.com