Iowa’s unemployment rises to 4 percent in June

Iowa’s unemployment rate increased for a third consecutive month to 4 percent as more workers rejoin the labor force, according to data released by the Iowa Workforce Development Friday.

The number of employed Iowans increased by 3,800 in June, but an influx of workers in the labor force caused the unemployment rate to also climb. The jobless rate only includes people actively seeking work and unemployment benefits.

Iowa’s labor force grew by 6,100 people in June, boosting the state’s labor force participation rate to 66.6 percent.

The rate is at its highest point since May 2020 although it remains below Iowa’s 70.1 percent labor force participation in June 2019.

“Despite an increase in the unemployment rate, the overall trends are positive,” IWD Director Beth Townsend said in a news release.

“With over 70,000 open jobs, we need everyone we can get to rejoin the workforce to continue our economic recovery.”

Government accounted for the largest increase in jobs among an industry sector, with 2,600, followed by leisure and hospitality with 1,100.

Education and health services lost 1,500 jobs, but no other sector lost more than 100 jobs.

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