Iowa Job Losses: Manufacturing & Business Services Impact
Iowa’s job market faced challenges in May, with nonfarm employment decreasing by 8,200 jobs, painting a concerning picture for the state’s economy. Manufacturing and professional and business services felt the brunt of the losses. while these sectors contracted, education, health services, and government roles showed positive gains. The report from News Directory 3 reveals the state’s total nonfarm employment was 1,593,300 in May. The state’s labor force participation rate also increased. State officials are now assessing strategies to support impacted industries and foster job growth. Discover what’s next for Iowa’s workforce.
Iowa Job Market Sees Losses in Manufacturing, Business Services
Updated June 20, 2025
Iowa’s labor market experienced a downturn in May, with nonfarm businesses employing 8,200 fewer workers compared to the previous year. The Iowa Workforce Advancement data indicates that the manufacturing role and the professional and business services role were notably affected.
The state’s nonfarm employment totaled 1,593,300 in May,a decrease from 1,601,500 in May 2024. Manufacturing saw a loss of 8,400 jobs, while the professional and business services sector experienced a reduction of 4,600 positions.
Not all sectors experienced losses. Education and health services added 4,100 jobs, and government employment increased by 3,000.
The state’s monthly jobs and employment report did reveal some positive trends. The number of employed Iowans reached 1,669,100 in May, an increase of 2,100 from April and 5,700 from May 2024. The labor force participation rate also rose to 67.3%, up from 67.2% in April.
“Iowans continued to rejoin the labor force in May, with nearly 4,000 people who were previously on the sidelines coming back to launch their search for a new career,” Beth Townsend, executive director of the state agency, said.
Iowa’s unemployment rate in May was 3.6%, a slight increase from 3.5% in April. The national unemployment rate for May stood at 4.2%.
What’s next
State officials are expected to analyze the latest data to determine strategies for supporting affected industries and promoting job growth in key sectors. The state’s role in workforce development will be crucial in addressing these challenges.