Iowa unemployment rate dips to 4.9 percent in March

Iowa's seasonally adjusted unemployment rate for March dropped to 4.9 percent from 5.0 percent in February, according to Iowa Workforce Development.

March's jobless rate was significantly below the 5.4 percent recorded in March 2012.

Iowa Workforce Development said an estimated 80,700 people were unemployed last month, down from 82,300 in February.  The comparable figure for March 2012 was 88,500.

Total employment in Iowa has been gradually increasing over the past six months, reaching 1,562,200 in March.  The current figure is up from 1,555,100 in February and 1,561,200 in March 2012.

Total nonfarm employment decreased by 5,500 jobs in March, dropping the level to 1,517,200 from 1,522,700 in February. March's loss is the first since December and heavily influenced by weak hiring in seasonal industries, especially construction, professional and business services and leisure and hospitality.

Heather Gibney, research associate with the Iowa Policy Project in Iowa City, said Iowa's job picture weakened in March, despite a drop in the unemployment rate.

"A drop of 5,500 nonfarm jobs in one month is never good news, and it has the state off on a slow pace for job expansions in 2013," Gibney said. "Through the first three months, the state is averaging a net increase of only 500 jobs per month. That's far too slow a pace for meaningful growth toward job recovery and longer-term goals."

Despite the drop in March, nonfarm employment is 11,000, or 0.7 percent, higher than a year ago.

Education and health services added 800 jobs in March, leading all sectors in growth.  The gain was fueled entirely by hiring in the health care industry - some 900 positions - and more than offset last month's drop in health services, the first since June 2011.

Manufacturing added 500 jobs with this month's gain concentrated in nondurable goods factories.  The category has started 2013 on a positive note, increasing by 3,700 jobs this year.  Finance posted the only other gain for March - 300 jobs - and is currently 1,700 jobs higher than the same month one year ago.

On the other hand, leisure and hospitality reported the largest loss in March, down 2,000 jobs.  Hiring was slower than expected in arts and entertainment, although accommodations and food services also shed some 800 jobs.

Construction followed with a loss of 1,300 jobs, and professional and business services declined by 1,100.