Job growth higher than expected in Iowa

Iowa added 8,100 non-jobs in October, its highest monthly gain in more than 10 years, work force officials said today.

“After two quarters of weak job growth, Iowa's companies hired workers at a particularly strong pace in October,” said Elisabeth Buck, the director of Iowa Workforce Development.

The state's jobless rate was 6.7 percent in October, while the September rate was revised downward to 6.5 percent. The number of unemployed was 112,400 in October, down from 112,800 the month before. And the number of unemployed is still higher than the 108,300 who were without jobs a year ago.

The October job growth, all in the private sector, was larger than anticipated, and it was especially strong with staffing agencies, with 3,000 jobs added there. That may be a good sign overall. As an economy improves, businesses often hire temporary workers first. The health services sector also had a strong month, adding 2,400 positions.

Kerry Koonce, a Workforce Development spokesperson, said the last time that monthly job gains topped 8,000 was in July 2000.

The left-leaning Iowa Policy Project called the growth welcome news Tuesday, saying it has put the state on a pace for “stable and better job growth” than in any year over the past decade. It warned, however, there shouldn't be too much celebrating yet.

“We caution against making too much of a one-month change and will want to see how it fits in longer-term trends,” said Noga O'Connor, a research associate.

The new report comes as Congress is facing a decision whether to extend emergency unemployment benefits. About 40,000 Iowans stand to lose unemployment payments by next April if Congress does not act. Some will begin running out as early as the first week of December. Supporters of extending jobless benefits say the number of Americans out of work is far higher than normal, and millions of people still are struggling to find decent-paying work.

Last week, the House rejected a bid to extend the benefits, with Republicans and nearly a dozen Democrats voting against it. The GOP proposed using economic stimulus funds to pay for the extension, but Democrats objected, saying that money is helping to support the economy.