Iowa Workforce Development

01/23/2026 | Press release | Distributed by Public on 01/23/2026 09:03

Iowa Ends 2025 with Higher Labor Force Participation, 32,400 More Workers

Iowa Ends 2025 with Higher Labor Force Participation, 32,400 More Workers

Iowa Workforce Development Communications
For Immediate Release
Date: January 23, 2026
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: [email protected]

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Iowa Ends 2025 with Higher Labor Force Participation, 32,400 More Workers

Unemployment Rate in December Holds Steady at 3.5 Percent

DES MOINES, IOWA - Iowa's seasonally adjusted unemployment rate was 3.5 percent in December, level with November and up slightly from 3.3 percent one year ago. The labor force participation rate increased to 67.7 percent in December, as Iowa gained 4,600 workers in comparison to the previous month. The participation rate was up from 67.6 percent in November and 66.9 percent one year ago. Meanwhile, the U.S. unemployment rate decreased to 4.4 percent.

The total number of unemployed Iowans decreased to 61,400 in December from 61,800 in November.

The total number of working Iowans rose to 1,688,700 in December. This figure is 5,000 higher than November and 27,300 higher than one year ago.

"December's report shows that Iowa ended 2025 with 32,400 more workers than we had at the end of 2024," said Beth Townsend, Executive Director of Iowa Workforce Development. "And the numbers show that 27,300 additional Iowans were able to successfully find jobs in 2025, which is consistent with the increases we've seen over the past two months in the labor force participation rate. With almost 50,000 open jobs on IowaWORKS.gov, there are still employers looking for their next great hire, and we can help you connect."

Seasonally Adjusted Nonfarm Employment

In December, Iowa businesses shed 3,300 jobs, lowering total nonfarm employment to 1,595,500. Private industry was responsible for this decline as losses were evident in both goods-producing industries (-1,500) and private services (-2,900). Hiring at the local government level drove a 1,100 increase in jobs in the government sector, which is now up 1,600 for the year. (State government is little changed over the last 12 months, while federal government is down due to budget cutbacks (-1,000).)

Retail trade led all sectors in losses in December (-1,500). This sector had shown signs of hiring in the third quarter, but this momentum waned in the fourth quarter with 1,900 jobs shed since September. Wholesale trade continued to trend down in December (-1,000). Non-durable goods sales are responsible for most of these losses. Accommodations and food services shed jobs for the second consecutive month (-1,800). Full-service restaurants fueled most of the monthly decline. Manufacturing shed a combined 1,300 jobs. Non-durable goods factories were down 800 jobs, and durable goods shops were down 500 jobs. On the other hand, job gains were smaller and led by finance and insurance (+300). This sector is down 500 jobs versus last December. Other gains included education and health services and other services, each gaining 200 jobs.

Annually, the state is up 2,700 jobs over the past 12 months. Construction has added the most jobs during that span (+7,100). This sector has generally trended up over the past 12 months. Education and health care gained 5,900 jobs. Health care and social assistance alone has gained 3,900 jobs. Conversely, leisure and hospitality (-3,800) has pared the most jobs since last December with losses concentrated in accommodations and food service industries. Professional and business services are down 3,400 jobs, and trade, transportation, and utilities have shed 2,300.

Employment and Unemployment in Iowa, Seasonally Adjusted Data
Change from
December November December November December
2025 2025 2024 2025 2024
Civilian labor force 1,750,100 1,745,500 1,717,700 4,600 32,400
Unemployment 61,400 61,800 56,300 -400 5,100
Unemployment rate 3.5% 3.5% 3.3% 0.0 0.2
Employment 1,688,700 1,683,700 1,661,400 5,000 27,300
Labor Force Participation Rate 67.7% 67.6% 66.9% 0.1 0.8
U.S. unemployment rate 4.4% 4.5% 4.1% -0.1 0.3
Nonfarm Employment in Iowa, Seasonally Adjusted Data
Total Nonfarm Employment 1,595,500 1,598,800 1,592,800 -3,300 2,700
Mining 2,000 2,100 2,300 -100 -300
Construction 89,900 90,000 82,800 -100 7,100
Manufacturing 215,700 217,000 217,800 -1,300 -2,100
Trade, transportation and utilities 308,700 311,400 311,000 -2,700 -2,300
Information 17,900 18,000 17,900 -100 0
Financial activities 104,400 104,100 105,600 300 -1,200
Professional and business services 141,600 141,500 145,000 100 -3,400
Education and health services (private) 247,900 247,700 242,000 200 5,900
Leisure and hospitality 138,900 139,800 142,700 -900 -3,800
Other services 57,200 57,000 56,000 200 1,200
Government* 271,300 270,200 269,700 1,100 1,600
* includes publicly owned education and health services
Data Above Subject to Revision
Unemployment Insurance Claims for Iowa
% Change from
December November December November December
2025 2025 2024 2025 2024
Initial claims 23,026 9,148 25,306 151.7% -9.0%
Continued claims
Benefit recipients 20,535 9,669 22,330 112.4% -8.0%
Weeks paid 63,143 26,002 58,404 142.8% 8.1%
Amount paid $33,679,491 $13,804,346 $30,816,566 144.0% 9.3%

MEDIA ALERT: Local data for December 2025 will be posted to the IWD website on Thursday, January 27, 2026.

Visit iowalmi.govfor 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 January 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on January 23, 2026 at 15:03 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]