Iowa’s unemployment rate held steady at 3.4% in February, unchanged from January and slightly lower than a year ago, even as signs of strain appeared in parts of the state’s economy. The number of unemployed Iowans dipped to 58,700, while the total workforce declined modestly and labor force participation edged down to 67.8%.
Despite stability in the headline rate, employers cut 4,400 jobs during the month, marking the second decline in three months. Losses were concentrated in private service industries, including education, professional services, and trade. Government employment also fell.
Some sectors provided encouraging signs. Accommodation and food services led job gains, and construction continued a strong run, adding positions for the fourth consecutive month. Health care and social assistance also remained a bright spot, posting solid annual growth.
Overall, Iowa has lost 19,200 jobs over the past year, reflecting ongoing challenges even as pockets of growth persist.
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