Iowa unemployment rate unchanged in May

CEDAR RAPIDS - Iowa's unemployment rate was 3.8 percent in May, unchanged from April, according to Iowa Workforce Development.

Total nonfarm employment rebounded last month by adding 2,200 jobs. Gains were led by hiring in the private services and goods-producing sectors.

Government shed 800 jobs in May due to larger-than-expected seasonal losses primarily in state government, but remains up 2,900 jobs since last year.

Jobs were added in durable goods (1,000) along with nondurable goods factories (700). The education and health services sector was bolstered by an increase in private education and added 1,300 jobs this month.

Health services experienced a decline of 200 jobs, the first drop since September. Financial services added 900 jobs following declines in March and April, and professional and business services advanced by 700 positions.

The number of unemployed Iowans decreased to 64,700 in May from 65,600 in April. The number of working Iowans slipped to 1,645,800 in May.

Mike Owen, executive director of the Iowa Policy Project in Iowa City, said the May increase of 2,200 jobs kept Iowa on a long-term slow pace in job growth.

'Despite monthly fluctuations, it's hard to miss the long-term trend of painfully slow job growth for Iowa, but at least it is on the positive side,” Owen said in a news release.

'Nonfarm jobs have risen by about 1,800 on average over the last six months, over the last 12 months - even over the last four years. Over the last 19 months, jobs showed net gains in 16 of them, and overall by that same 1,800 average.”

Owen noted that the May numbers leave Iowa 37,800 jobs short of what is needed, with population growth, to match payroll jobs at the start of the last recession.

'At our current pace, this jobs deficit shows Iowa still has a steep climb to full recovery,” Owen said.