Iowa's jobless rate showing little change

Iowa's unemployment situation showed little improvement in October, as the state's jobless rate returned to the 6.7 percent level it hit in August for the first time in 26 years.

“Significant economic obstacles lie ahead for the state, and the October jobs report offered further evidence the Iowa economy continues to be challenged," Iowa Workforce Development Director Elisabeth Buck said.

The 6.7 percent October unemployment rate was actually the same as the preliminary unemployment rate for September, which has since been revised downward to 6.6 percent.

The total number of working Iowans fell to 1,573,400 in October. That was 6,200 less than the prior month's level of 1,579,600, and 31,500 lower than the October 2008 level.

The service sector showed signs of life, adding 2,300 jobs. But a modest gain of 500 in manufacturing employment was offset by the loss of an equivalent number of jobs in construction.

With the approach of the crucial holiday shopping season, employment in the trade and transportation sector that includes retail workers is down 4,800 from October 2008.

Iowa's unemployment rate was eighth-lowest in the nation. It remained well below the national unemployment rate of 10.2 percent, which was above 10 percent for the first time in 26 years.

Education and health care were the strongest job-producing sectors of Iowa's economy in October. They added a total of 2,000 jobs. Most of the jobs - 1,300 - were in health care.