Iowa unemployment hits lowest rate since 2001

Boosts in Iowa's financial, trade and transportation, and business services industries have helped bring the state's unemployment rate to its lowest level in about 16 years.

Iowa's jobless rate fell to 3.2 percent in February, down from 3.8 percent the year before, new numbers from Iowa Workforce Development show. The drop brings Iowa's unemployment rate down to about where it was in the early 2000s.

'Iowa took another step toward full employment with the unemployment rate dropping to its lowest level since 2001,” Iowa Workforce Development Director Beth Townsend said in a statement.

Iowa Workforce Development considers a 3 percent unemployment rate to be full employment for the state, a department spokesman said.

'Full employment” does not mean the unemployment level is zero. Instead, Iowa State University economist Dave Swenson said, it is a measure of a lack of slack in the labor force and counts a natural churn in workers starting and leaving jobs.

Hiring among finance and business services companies helped drive the state's employment gains during the last 12 months.

The financial sector brought on 3,000 additional hires while professional and business services added 4,200 jobs. Education, leisure and hospitality, and the trade and transportation sectors also saw gains in the past year.

Iowa's manufacturing sector took a hit, however, dropping 4,000 jobs since February 2016.

The nation's unemployment rate fell to 4.7 percent in February from 4.9 percent a year ago.

The unemployment rate may not reflect every nonworking individual as it doesn't take into account those who have stopped actively seeking a job or cycled out, among reasons.

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