Cedar Rapids unemployment rate jumps to 7.3%

Unemployment in the Cedar Rapids metro area leapt in January, as job cuts in retail, trade and transportation hit workers.

The January unemployment figure rose to 7.3 percent in the Cedar Rapids Metropolitan Statistical Area, from 6.5 percent in December.

Iowa City Metropolitan Statistical Area unemployment increased to 5.1 percent from 4.6 percent in December.

Unemployment barely rose statewide, edging to 6.6 percent from 6.5 percent in December. The release of the January numbers was delayed by an annual reconciliation of 2009 unemployment statistics.

The total number of unemployed workers statewide increased by 1,200 in January to 111,000, while the overall number of working Iowans increased by 2,600, to 1,570,200.

“Recent indicators show that confidence is beginning to rebuild among the state's employers, which will gradually lead to hiring activity,” Iowa Workforce Development Director Elisabeth Buck said.

Trade and transportation jobs increased 3,400 in January statewide. That wasn't the case in the Corridor, where many retail, trade and transportation jobs are concentrated.

Trade and transportation jobs slipped by 900 in the Cedar Rapids metro area from December to January, and by 700 jobs in the Iowa City metro area.