Iowa City unemployment drops to 2.2 percent

The unemployment picture in the Cedar Rapids-Iowa City Corridor was mixed last month, according to Iowa Workforce Development.

Cedar Rapids' jobless rate was unchanged in November at 3.3 percent, while Iowa City's unemployment rate dipped to 2.2 percent from 2.4 percent in October.

The Cedar Rapids metropolitan statistical area (MSA) added 600 nonfarm jobs from October, bringing employment to 144,300.

Trade, transportation and warehousing led all sectors, adding 400 jobs from October. The bulk of the gain was 300 positions in retail trade as the holiday shopping season began. Professional and business services gained 300 jobs. Smaller gains were recorded in financial activities and government.

Employment losses of 100 jobs occurred in natural resources and construction, manufacturing, and leisure and hospitality partially offset the total nonfarm employment gain.

Nonfarm employment in the Iowa City MSA is 400 above October due to a gain of 300 jobs in government and 300 positions in private service. Trade, transportation and warehousing added 200 jobs, but remain 100 below a year ago.

Goods-producing industries remain 100 positions above November 2014.

Iowa's jobless rate edged down to 3.4 percent last month from 3.5 percent in October as payrolls grew by 8,400 jobs.

Mike Owen, executive director of the Iowa Policy Project in Iowa City, said November was a very strong month, particularly with big gains in construction. But Owen cautioned that long-term signals are mixed.

'On the one hand, the gap is narrowing between jobs we have and what we need to keep up with population since the recession years,” Owen said. 'On the other hand, that gap remains at about 28,000 jobs and the long-term pace remains slow - and the current 12-month pace of 2,300 new jobs each month won't close that jobs deficit anytime soon.”