Iowa unemployment rate edges lower

Iowa's seasonally adjusted unemployment rate dropped to 4.2 percent in January from 4.3 percent in December as nonfarm employment continued to rise.

The state's jobless rate was 4.4 percent in January 2013. The national unemployment rate was 5.7 percent in January.

Iowa's nonfarm employment added 3,100 jobs in January, according to Iowa Workforce Development, raising the total to 1,562,200. The increase marks the state's fourth-consecutive advance and was fueled primarily by the service sector.

Government employment increased in January due to larger-than-expected hiring in education industries. The sector has gained 4,900 jobs since January 2014.

Trade and transportation increased by 2,200 jobs in January, fueled by growth in wholesale and retail sectors. The increase follows an unexpected drop in December due to weaker-than-expected retail hiring.

Professional and business services also fared well in January, adding 1,800 positions with hiring in professional, scientific and technical services.

Administrative and support services has contracted in four of the last five months and could be evidence of firms hiring permanent staff to replace temporary or contract employees.

Leisure and hospitality hiring added 800 jobs in January, fueled by advances in accommodations and food services. Losses in January were heaviest in education and health services, down 1,300 jobs due to a decrease in employment within private education.

Construction leads all sectors in job gains over the last year, up 6,500 despite a decline of 900 in January. Trade and transportation is up 5,600 jobs and professional and business services are up 4,200 positions.

Local unemployment rates will be released Friday by Iowa Workforce Development.