Iowa unemployment picture dimmed in July

Iowa's unemployment rate increased in July after declining or holding steady each of the previous 10 months.

The seasonally adjusted unemployment rate rose to 5.3 percent in July, from a revised June rate of 5.1 percent. The number of Iowans counted as unemployed increased by 2,900 from June, to 88,200.

“The July jobs report demonstrates a slow and fragile economic recovery,” said Teresa Wahlert, director of Iowa Workforce Development, in prepared remarks.

Wahlert pointed to some bright spots, including a gain of 12,500 nonfarm jobs from one year ago despite the global economic slowdown of the past several months.

The total number of working Iowans decreased 9,900 from June's level, to 1,563,400, but remained about 4,000 higher than in June 2011.

The manufacturing sector lost 600 jobs in July, mainly in nondurable goods factories. Leisure and hospitality lost 500 jobs, and construction lost 1,200 jobs.

Another sector hit by job losses was professional and business services, which was down by 800.

The biggest job gain was in government, which added 5,200 jobs in July, due primarily to the shift in the summer break schedule for public school employees.

Year-over-year, government jobs were down by more than any other sector - a total of 2,700 jobs.