Iowa Workforce Development Communications
For Immediate Release
Date: January 23, 2026
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov
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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.gov 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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