NEWS RELEASE: 3,900 New Workers in June Boosts Iowa’s Labor Force Participation Rate to 67.4 Percent

3,900 New Workers in June Boosts Iowa’s Labor Force Participation Rate to 67.4 Percent

Unemployment Rate Rises Slightly to 3.7 Percent

DES MOINES, IOWA – In June, for the second consecutive month, 3,900 Iowans entered the labor force. The increase in workers brought Iowa’s labor force participation rate to 67.4 percent, up from 67.3 percent in May. At the same time, Iowa’s seasonally adjusted unemployment rate rose slightly in June to 3.7 percent (up from 3.6 percent in May), and the U.S. unemployment rate decreased to 4.1 percent.

The total number of working Iowans increased to 1,671,800 in June. This figure is 2,700 higher than May and 8,800 higher than one year ago.

The total number of unemployed Iowans increased to 63,700 in June from 62,400 in May.

“More Iowans joined the workforce in June, increasing the state's labor force by 3,900, with significant participation increases among women 45 and older,” said Beth Townsend, Executive Director of Iowa Workforce Development. “Healthcare and construction accounted for more than 3,700 of the new jobs following a trend for both industries in 2025.  With over 51,000 jobs posted on IowaWORKS.gov, anyone looking for a new or better job remains in a good position to find one.”

Seasonally Adjusted Nonfarm Employment

Iowa businesses shed 2,700 jobs in June, lowering total nonfarm employment to 1,590,700. Private service industries were responsible for all the movement as both goods-producing industries and government entities changed little since May. June’s loss follows a drop of 5,100 jobs in May with the largest declines being in leisure and hospitality, administrative support and waste management, and manufacturing. However, these losses were partially offset by gains in health care and construction. Following this June report, total nonfarm employment trails last June’s mark by 6,800 jobs. Private industry has fueled these annual losses.

Leisure and hospitality shed the most jobs in June (-5,200). Arts, entertainment, and recreation shed 2,800 jobs, and accommodations and food services lost 2,400 jobs. This super sector has pared jobs in three of the last four months and may be evidence of consumers reigning in discretionary spending. Administrative support and waste management shed 900 jobs following a loss of 1,500 in May. This sector has shed 2,800 jobs since February. Manufacturing continued to decline in June, dropping by 800 jobs. These losses were evenly split between durable and non-durable goods factories. On the other hand, job gains were highest in health care and social assistance (+2,800). This sector continues to expand, and the gains were highest in ambulatory health care services – chiefly offices of physicians, dentists, and other health practitioners. Construction continues to expand and gained 1,000 jobs since May. This sector has now added 6,100 jobs since January. Smaller gains in June included retail trade (+500) and transportation, warehousing, and utilities (+400).

Over the past 12 months, health care and social assistance has gained the most jobs (+7,500). Gains were highest in nursing and residential facilities along with social assistance. Construction is up 3,700 jobs following the June gain. This sector has trended up since January, gaining 6,100 jobs during that span. Alternatively, job losses continue to be highest in manufacturing (-9,100). Those subsectors most affected are machinery manufacturing, fabricated metal production, and food production. Leisure and hospitality trails last year’s level by 6,700 jobs. Losses in arts, entertainment and recreational industries were responsible for a majority of the jobs shed (-3,500).

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