Iowa Workforce Development

08/14/2025 | Press release | Distributed by Public on 08/14/2025 08:14

Iowa’s Unemployment Rate Holds at 3.7 Percent in July

Iowa's Unemployment Rate Holds at 3.7 Percent in July

  • Thursday, August 14, 2025
  • Press Release

Iowa Workforce Development Communications
For Immediate Release
Date: August 14, 2025
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: [email protected]

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Iowa's Unemployment Rate Holds at 3.7 Percent in July

DES MOINES, IOWA - Iowa's seasonally adjusted unemployment rate held steady at 3.7 percent in July. Iowa's jobless rate was 3.1 percent one year ago. The U.S. unemployment rate increased to 4.2 percent in July.

The total number of unemployed Iowans increased to 64,900 in July from 63,700 in June.

The total number of working Iowans increased to 1,672,600 in July. This figure is 600 higher than June and 11,000 higher than one year ago. Meanwhile, Iowa's labor force participation rate held steady at 67.4 percent.

"Iowa's economy in July saw the unemployment rate hold steady. 600 more Iowans were employed than the previous month and businesses added several hundred jobs," said Beth Townsend, Executive Director of Iowa Workforce Development. "The fact that 11,000 more Iowans are working than the same time a year ago is a good sign given the job losses we've seen in manufacturing. There remain over 50,000 open jobs on IowaWORKS.gov, which means significant opportunities exist for Iowans who are looking for a new or next great job."

Seasonally Adjusted Nonfarm Employment

Iowa's business establishments added 300 jobs in July, elevating total nonfarm employment to 1,591,500. This minor increase comes in the wake of losses totaling 7,300 over the prior two months. Private industry was responsible for the gains this month as government (-900) decreased largely at the local level. Following this slight monthly increase, total nonfarm employment is down 3,600 jobs over the past 12 months. Private service industries continue to fuel this loss.

Education services led all sectors in jobs added in July (+2,600). This sector pared 3,300 jobs over the prior two months and has shown little trend annually. Education is down slightly versus last July (-400). Leisure and hospitality added 1,400 jobs. Gains were nearly even between arts, entertainment, and recreation (+600) and accommodations and food services (+800). The gains could be attributed in part to shifting seasonality following weak seasonal hiring in June. Manufacturing increased in both durable and non-durable goods in July, adding a total of 600 jobs. This is the first monthly increase for manufacturing since a gain of 300 jobs in March.

On the other hand, trade industries - retail and wholesale - collectively lost 1,900 jobs since June. Wholesale trade has fared worse with losses outpacing retail by a 2:1 margin in July. This sector has lost 3,800 jobs since February. Professional and business services shed 1,000 jobs. Most of these losses were from administrative support and waste management service industries.

Annually, total nonfarm employment is down 3,600 jobs. Manufacturing leads all sectors in jobs shed (-5,400). Durable goods factories are responsible for virtually all jobs shed. Non-durable goods factory payrolls are little changed since last July. Professional and business services is down 4,900 jobs and leisure and hospitality is down 4,400 jobs despite an increase this month. Health care and social assistance leads all sectors in jobs added (+6,400). Prior to this month, this sector last shed jobs in September. Construction is up 4,700 jobs versus last July. This sector showed little change since June; however, this sector is up 6,500 jobs since January.

Employment and Unemployment in Iowa, Seasonally Adjusted Data
Change from
July June July June July
2025 2025 2024 2025 2024
Civilian labor force 1,737,500 1,735,700 1,715,400 1,800 22,100
Unemployment 64,900 63,700 53,900 1,200 11,000
Unemployment rate 3.7% 3.7% 3.1% 0.0 0.6
Employment 1,672,600 1,672,000 1,661,600 600 11,000
Labor Force Participation Rate 67.4% 67.4% 67.0% 0.0 0.4
U.S. unemployment rate 4.2% 4.1% 4.2% 0.1 0.0
Nonfarm Employment in Iowa, Seasonally Adjusted Data
Total Nonfarm Employment 1,591,500 1,591,200 1,595,100 300 -3,600
Mining 2,100 2,100 2,300 0 -200
Construction 89,100 89,100 84,400 0 4,700
Manufacturing 216,300 215,700 221,700 600 -5,400
Trade, transportation and utilities 309,100 310,300 312,500 -1,200 -3,400
Information 18,000 18,100 17,900 -100 100
Financial activities 103,800 104,600 106,000 -800 -2,200
Professional and business services 140,800 141,800 145,700 -1,000 -4,900
Education and health services (private) 246,400 244,300 240,400 2,100 6,000
Leisure and hospitality 139,500 138,100 143,900 1,400 -4,400
Other services 57,100 56,900 55,600 200 1,500
Government* 269,300 270,200 264,700 -900 4,600
* includes education and health services (public)
Data Subject to Revision
Unemployment Insurance Claims for Iowa
% Change from
July June July June July
2025 2025 2024 2025 2024
Initial claims 9,494 10,350 11,523 -8.3% -17.6%
Continued claims
Benefit recipients 13,830 11,328 16,430 22.1% -15.8%
Weeks paid 39,670 34,115 46,487 16.3% -14.7%
Amount paid $20,011,773 $17,333,493 $22,972,554 15.5% -12.9%

MEDIA ALERT: Local data for July 2025 will be posted to the IWD website on Tuesday, August 19, 2025. Statewide data for August 2025 will be released on Thursday, September 18, 2025.

Visit Iowa Labor Market Informationfor more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.

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Related files

  • Unemployment Rate Release - DRAFT - July 2025_081225.pdf

Iowa Workforce Development published this content on August 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 14, 2025 at 14:14 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]