Jobless rate continued to improve in Iowa during February

Iowa's unemployment rate continued to improve in February, providing additional evidence of economic recovery.

The jobless rate fell to 5.3 percent in February from January's 5.4 percent rate, according to Iowa Workforce Development.

Unemployment has been on a downward track since September 2011, although it remained stuck at 5.6 percent in November and December. It stood at 6 percent in February 2011.

Iowa Workforce Development said the number of unemployed Iowans fell by 1,600, from 90,100 to 88,500. The number of working Iowans fell by 400, from 1,576,300 to 1,575,900.

Iowa Workforce Development Director Teresa Wahlert pointed to the improvement of 8,700 in nonfarm employment, which is considered a better indicator of economic conditions. The gain reinforces the view that Iowa's economy is turning the corner, she said in prepared remarks.

“The strong job gains of 8,700 reported for February reinforced the view that Iowa's economy is turning the corner” said Teresa Wahlert, director of Iowa Workforce Development. “February's job gains were also broader in scope, occurring in most industry sectors.”

The estimate of unemployed Iowans fell to 88,500 in February from 90,100 in January, and was 11,200 lower than the February 2011 level of 99,700.

The total number of working Iowans dropped slightly to 1,575,900 in February from 1,576,300 in January. However, the current estimate of total employment is 7,500 higher than the year ago level of 1,568,400.

Education services accounted for 2,700 of the monthly gain, while health services advanced by 900.

Leisure and hospitality increased by 2,100, and construction gained 1,300 jobs.

The Cedar Rapids Metropolitan Statistical Area jobless rate improved to 6.2 percent from 6.3 percent, and added 500 jobs in February. Local government added the most jobs, 700, due to a seasonal return of education staff after the holiday break.

Employment in the Cedar Rapids MSA lags 2,400 jobs behind February 2011 levels, due mainly to a drop of 1,700 jobs in the service sector, including financial services, educational and health services and professional and business services.

The Iowa City MSA jobless rate improved to 4.2 percent from 4.4 percent. A total of 2,600 nonfarm jobs were added, and total nonfarm employment is up 600 jobs from one year ago despite a reduction of 900 government jobs.

Washington County's jobless rate was unchanged at 5.8 percent.

Visit www.iowaworkforce.org/lmi/laborforce/locallaborforce.html for county unemployment rates,

www.iowaworkforce.org/lmi/laborforce/index.html for current and historical labor force data and

www.iowawokforce.org/lmi/empstat/msanonag.htm for detailed information on nonfarm employment.

Visit www.iowaworkforce.org/trends/wages.html for information on hours and earnings and www.iowaworkforce.org/trends/uiclaimscomo.html to obtain a breakout of jobless benefits by county.

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