Iowa job recovery stuck in May at 5.1 percent

The number of unemployed Iowans rose ever so slightly in May, as the state's jobless rate remained stuck at 5.1 percent.

About 200 more Iowans were looking for work at the end of May than at the end of June, and the number of working Iowans declined by 15,200.

Iowa's total nonfarm employment shed 3,300 jobs in May, lowering the monthly estimate to 1.5 million. This month's decline was spread across several sectors and could be a symptom of the economic turmoil in Europe, coupled with decreased spending from consumers, state officials said.

Iowa's jobless rate had been ticking downward by about 0.1 percent each month recently. But Iowa Workforce Development officials did not see any cause for concern in the lack of improvement over the one-month period, pointing to favorable comparisons with May 2011 figures.

It was the second decline in the unemployment rate this year.

“The Iowa economy remains on track for modest growth in the coming months,” said Teresa Wahlert, director of Iowa Workforce Development. “Continued improvement, particularly in housing, will strengthen job growth in a broad range of industries.”

Wahlert pointed out that May unemployment numbers were improved from a year ago, with 85,200 Iowans counted as unemployed in May compared to 99,100 a year ago. The number of working Iowans, at 1,577,700, was 14,700 higher than one year ago.

This month's decline was spread across several sectors and could be a symptom of the economic turmoil in Europe coupled with decreased spending from consumers. The job loss in May is the second for the current year, and the magnitudes of the declines in 2012 have been smaller than the gains.

Professional and business services decreased by 1,900 jobs in May, the most of any sector. The loss was heaviest in administrative and support services (-1,700), although professional, technical and scientific services also lost jobs during the month.

Trade and transportation pared 1,800 jobs with losses occurring in retail, wholesale, and transportation. Smaller losses occurred in construction, manufacturing and finance.

Leisure and hospitality gained 1,200 jobs, the most of any sector.