Iowa jobless rate rises in February

Iowa's seasonally adjusted unemployment rate rose to 3.7 percent in February, from 3.5 percent in January, as the number of unemployed Iowans increased, according to Iowa Workforce Development.

'This is the first increase in Iowa's unemployment rate since 2009, and I'm not surprised,” said Beth Townsend, director of Iowa Workforce Development in a news release. 'Given the number of layoff announcements over recent months, I'm pleased the increase isn't bigger.”

The number of unemployed Iowans rose to 63,000 in February from 60,200 in January. The estimate is 800 lower than the February 2015 level of 63,800.

The number of working Iowans increased to 1,651,100 in February, up 1,900 from January and 13,700 higher than a year ago.

Iowa employers shed 6,200 jobs in February, lowering total nonfarm employment 0.4 percent to 1,574,400 jobs. Virtually all segments of the state's economy scaled back last month, with the private sector losing 5,000 jobs.

Manufacturing employment has taken a major hit over the last year with 3,100 jobs lost due to layoffs at companies involved with agribusiness and energy. Deere has laid off more than 1,600 employees as farm commodity prices have not rebounded and construction machinery sales have lagged.

Jobless rates were unchanged last month in the Corridor, with Cedar Rapids at 4.6 percent and Iowa City at 3.1 percent.

The Cedar Rapids metropolitan statistical area (MSA) added 200 nonfarm jobs from January, bringing employment to 141,900 in February. Total nonfarm employment in the metro area is 600 above February 2015.

Educational and health services experienced a seasonal gain of 400 jobs, signaling the end of the holiday break. Trade, transportation and warehousing shed 400 jobs, all in retail trade.

Nonfarm employment in the Iowa City MSA is up 1,200 jobs from January, largely due to seasonal gains following the holiday break with government adding 600 jobs. Trade, transportation and warehousing and leisure and hospitality each added 100 jobs.