Iowa Workforce Development Communications
For Immediate Release
Date: September 18, 2025
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov
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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.gov or 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 Information for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.
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