Iowa Workforce Development

06/18/2026 | Press release | Distributed by Public on 06/18/2026 08:21

Iowa’s Unemployment Rate Drops to 3.2 Percent in May

Iowa's Unemployment Rate Drops to 3.2 Percent in May

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Iowa Workforce Development Communications
For Immediate Release
Date: June 18, 2026
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: [email protected]

Printer Friendly Version of May 2026 Release (157.54 KB) .pdf

Iowa's Unemployment Rate Drops to 3.2 Percent in May

Employers Expand Payrolls for Third Month in a Row

DES MOINES, IOWA - Iowa's seasonally adjusted unemployment rate dropped to 3.2 percent in May, down from 3.3 percent in April and 3.6 percent one year ago. Meanwhile, the U.S. unemployment rate remained at 4.3 percent in May.

The total number of unemployed Iowans decreased to 56,100 in May from 57,200 in April.

The total number of working Iowans decreased to 1,676,100 in May. This figure is 1,800 lower than April and 1,600 higher than one year ago. Iowa's labor force participation rate fell to 67.4 percent in May from 67.5 percent in April.

"With five months of 2026 data now available, the emerging trend is one of slow-but-steady growth in Iowa hiring," said Beth Townsend, Executive Director of Iowa Workforce Development. "Employers across most Iowa industries are adding jobs on a regular basis even as unemployment insurance claims hover at near-record lows and the state's Unemployment Insurance Trust Fund has a balance of more than $2.1 billion. At the same time, more than 57,000 unfilled jobs are posted on IowaWORKS.gov, so opportunity remains for anyone who's looking to find a better position or embrace a new career."

Seasonally Adjusted Nonfarm Employment

Businesses in Iowa added 3,400 jobs in May, lifting total nonfarm employment to 1,584,500 jobs. This is the third consecutive gain as the state has added 8,200 jobs since February. The primary driver of these job gains is private service industries. Goods-producing firms, primarily construction and manufacturing, have lost 400 jobs during that same time frame. Government has gained 800 jobs at the local level but is down 1,600 jobs compared to last year, while private industries trail by 10,000 jobs.

Retail trade added the most jobs in May (+1,700). This is the first sizable gain of the year for this sector and the result of hiring in several industries including outdoor power equipment dealers, supermarkets, hardware stores, and car dealers, among others. Professional, scientific, and technical firms gained 900 jobs. This is the first increase since June of last year for this sector. Durable goods manufacturing increased by 600 jobs. Foundries and metal product production helped fuel this growth. This gain, however, was offset partially by a loss of 400 jobs in nondurable goods factories. Firms involved in food production drove this loss. Nondurable goods shops have pared 1,500 jobs since January. Other services shed 500 jobs. This sector has not shown any marked trend over the past 12 months. Health care and social assistance decreased by 500 since April. Losses for this sector are unusual given the steady demand for services within health care industries. The only other losses were small in magnitude and were construction (-400) and administrative support and waste management (-400).

Annually, the state has shed 11,600 jobs since last May. Trade and transportation industries are down 6,100 jobs. Trade industries are responsible for 4,000 jobs shed, and transportation, warehousing, and utilities have lost 2,100 jobs. Manufacturing is down 3,800 jobs over the past 12 months. Factories involved with nondurable goods production have shed most of the jobs lost (-2,200). Conversely, health care and social assistance has added the most jobs annually despite minor losses over the past couple months (+3,200). Construction also experienced a small loss in May yet remains up 1,700 jobs. This sector had previously shown an upward trend since October of last year.

Employment and Unemployment in Iowa, Seasonally Adjusted Data
Change from
May April May April May
2026 2026 2025 2026 2025
Civilian labor force 1,732,200 1,735,100 1,736,300 -2,900 -4,100
Unemployment 56,100 57,200 61,800 -1,100 -5,700
Unemployment rate 3.2% 3.3% 3.6% -0.1 -0.4
Employment 1,676,100 1,677,900 1,674,500 -1,800 1,600
Labor Force Participation Rate 67.4% 67.5% 67.8% -0.1 -0.4
U.S. unemployment rate 4.3% 4.3% 4.3% 0.0 0.0
Nonfarm Employment in Iowa, Seasonally Adjusted Data
Total Nonfarm Employment 1,584,500 1,581,100 1,596,100 3,400 -11,600
Mining 2,300 2,300 2,200 0 100
Construction 85,800 86,200 84,100 -400 1,700
Manufacturing 214,100 213,900 217,900 200 -3,800
Trade, transportation and utilities 304,700 303,000 310,800 1,700 -6,100
Information 17,700 17,600 17,900 100 -200
Financial activities 105,400 104,800 105,400 600 0
Professional and business services 141,900 141,200 144,100 700 -2,200
Education (private) 43,300 43,100 42,100 200 1,200
Health care and social assistance 204,100 204,600 200,900 -500 3,200
Leisure and hospitality 142,100 141,600 145,400 500 -3,300
Other services 54,600 55,100 55,200 -500 -600
Government* 268,500 267,700 270,100 800 -1,600
* includes publicly owned education and health services
Data Above Subject to Change
Unemployment Insurance Claims for Iowa
% Change from
May April May April May
2026 2026 2025 2026 2025
Initial claims 7,232 5,572 7,456 29.8% -3.0%
Continued claims
Benefit recipients 10,132 12,396 16,723 -18.3% -39.4%
Weeks paid 27,590 33,327 40,281 -17.2% -31.5%
Amount paid $14,911,211 $17,934,788 $21,363,238 -16.9% -30.2%

Local Data and Next Data Release

Media Alert: Local data for April 2026 will be available on the IWD website on Wednesday, May 27. Statewide data for May 2026 will be released on June 18, 2026.

Visit iowalmi.gov for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.

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Iowa Workforce Development published this content on June 18, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 18, 2026 at 14:21 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]