Iowa Workforce Development

09/18/2025 | Press release | Distributed by Public on 09/18/2025 08:33

Labor Force Participation Rate Climbs to 67.5 Percent in August With 1,900 New Workers

Labor Force Participation Rate Climbs to 67.5 Percent in August With 1,900 New Workers

  • Thursday, September 18, 2025
  • Press Release

Iowa Workforce Development Communications
For Immediate Release
Date: September 18, 2025
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: [email protected]

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Labor Force Participation Rate Climbs to 67.5 Percent in August With 1,900 New Workers

Unemployment rate increases slightly to 3.8 percent while employers add 3,600 jobs.

DES MOINES, IOWA - Iowa added 1,900 people to the labor force in August, led primarily by adults ages 20 to 24, increasing the state's labor force participation rate to 67.5 percent (up from 67.4 percent in July). At the same time, Iowa's seasonally adjusted unemployment rate rose slightly to 3.8 percent (up from 3.7 percent in July), and the U.S. unemployment rate increased to 4.3 percent (up from 4.2 percent in July).

The total number of unemployed Iowans increased to 65,800 in August from 64,900 in July.

The total number of working Iowans increased to 1,673,500 in August. This figure is 1,100 higher than in July and 13,200 higher than one year ago.

"August saw growth in both the number of Iowans in the labor force and the total number of working Iowans," said Beth Townsend, Executive Director of Iowa Workforce Development. "Likewise, we've also seen a more than 10 percent reduction in the number of unemployment claims from the same time last year. Our investments in helping people find new jobs or the next job are paying off, and if you find yourself in that category, we can help. Visit IowaWORKS.govor come and see us at one of our 15 American Job Centers located around the state."

Seasonally Adjusted Nonfarm Employment

Iowa establishments gained 3,600 jobs in August, lifting total nonfarm employment to 1,594,600. This gain is the first since April and was mostly the result of private service industry hiring; goods-producing industries decreased slightly. Hiring within the state and local schools and colleges led to a gain of 700 jobs within government. Despite the monthly increase, total nonfarm employment continues to trail last year's level by 2,300 jobs.

Professional and business services gained 1,800 jobs in August, leading all super sectors. This monthly gain was largely due to hiring within professional services, which include legal, accounting, and computer programming industries. Leisure and hospitality added a combined 1,200 jobs. Accommodations and food services gained 700 jobs and arts, entertainment, and recreational industries added 500 jobs. This is the second consecutive gain for this super sector which has added 2,700 jobs over the last two months. Trade industries added 1,000 jobs. Retail trade added slightly more jobs than wholesale in August (+600). Conversely, job losses in August were sparse and led by health care and social assistance (-800). Firms involved in social assistance have fueled job losses over the past two months. Establishments involved in ambulatory care and doctor offices and hospitals helped offset this loss. Construction shed 700 jobs in August following a loss of 400 in July.

The health care and social assistance sector (which includes child care businesses) has added the most jobs (+4,600) over the past 12 months. This sector has continued to trend upward despite recent weakness in social assistance services. Construction is also markedly up versus last August (+3,800). This sector gained 6,500 jobs from January to June ahead of job losses over the prior two months. Alternatively, manufacturing continues to lead all sectors in annual job losses (-5,300). Durable goods factories are responsible for this loss as non-durable goods shops have gained 200 jobs. Administrative support and waste management industries are down 4,400 jobs. This industry continues to trend down despite the August jobs gain.

Employment and Unemployment in Iowa, Seasonally Adjusted Data
Change from
August July August July August
2025 2025 2024 2025 2024
Civilian labor force 1,739,300 1,737,400 1,715,800 1,900 23,500
Unemployment 65,800 64,900 55,500 900 10,300
Unemployment rate 3.8% 3.7% 3.2% 0.1 0.6
Employment 1,673,500 1,672,400 1,660,300 1,100 13,200
Labor Force Participation Rate 67.5% 67.4% 67.0% 0.1 0.5
U.S. unemployment rate 4.3% 4.2% 4.2% 0.1 0.1
Nonfarm Employment in Iowa, Seasonally Adjusted Data
Total Nonfarm Employment 1,594,600 1,591,000 1,596,900 3,600 -2,300
Mining 2,100 2,100 2,300 0 -200
Construction 88,000 88,700 84,200 -700 3,800
Manufacturing 216,000 216,100 221,300 -100 -5,300
Trade, transportation and utilities 310,900 310,000 312,900 900 -2,000
Information 17,800 17,900 18,000 -100 -200
Financial activities 103,900 103,800 105,700 100 -1,800
Professional and business services 142,400 140,600 145,500 1,800 -3,100
Education and health services (private) 245,400 245,600 241,000 -200 4,400
Leisure and hospitality 140,800 139,600 143,800 1,200 -3,000
Other services 57,300 57,300 55,600 0 1,700
Government* 270,000 269,300 266,600 700 3,400
*Includes publicly owned education and health services
Data Subject to Revision
Unemployment Insurance Claims for Iowa
% Change from
August July August July August
2025 2025 2024 2025 2024
Initial claims 7,440 9,494 8,442 -21.6% -11.9%
Continued claims
Benefit recipients 13,783 13,830 14,638 -0.3% -5.8%
Weeks paid 36,471 39,670 37,871 -8.1% -3.7%
Amount paid $18,791,952 $20,011,763 $19,382,627 -6.1% -3.0%

MEDIA ALERT: Local data for August 2025 will be posted to the IWD website on Tuesday, September 23, 2025. Statewide data for September 2025 will be released on Thursday, October 16, 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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Iowa Workforce Development published this content on September 18, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 18, 2025 at 14:33 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]