(The Center Square) – Iowa’s unemployment rate went up last month despite more jobs and a growing workforce, Iowa Workforce Development reported Friday.
The state’s seasonally adjusted unemployment rate rose to 2.9% in August, up from 2.7% the previous month. The 2.9% rate matches Iowa’s same rate during August last year, workforce data shows.
However, 53% more Iowans filed for unemployment insurance last month than a year ago, according to the report.
In total, there were 50,200 unemployed Iowans in August, 2,500 more than in July, the report shows. Labor force participation simultaneously decreased slightly from 68.8% to 68.7%.
Even though more Iowans were experiencing unemployment in August, the state added 2,400 more jobs and saw its workforce grow by 500 people, according to the report.
Still, 2,000 fewer Iowans were working last month than the previous month.
“Iowa employers appear to have acted cautiously last month amid ongoing worry about the national economy and rising inflation,” said Beth Townsend, Executive Director of Iowa Workforce Development. “However, we saw Iowa’s pool of available workers increase, meaning that more and more Iowans continue to show a strong desire to find new careers across the state.”
The U.S. unemployment rate also increased from 3.5% to 3.8% in August.
In Iowa, some industries have been shedding jobs for months while others have steadily added more.
Professional and business services lost 1,100 jobs from July to August, the fifth month in a row that sector lost jobs in the state, according to workforce data. Since August last year, jobs in professional and business services have dwindled by 8,100 in Iowa.
Wholesale trade lost 1,600 jobs last month and retail also declined by 800 jobs, the report shows.
Sectors that have enjoyed growth in the last 12 months include education, health care, and social assistance, which have added at least 10,600 jobs combined. The leisure and hospitality sector added the most jobs in August at 2,600, according to Iowa Workforce Development.
Other industries that added more jobs last month include manufacturing, with an increase of 600, and information services, which added 400 jobs, the report said.
