Iowa unemployment rate levels off in December, latest jobs report shows

After four straight months of increases from the July low of 2.5%, Iowa's unemployment rate leveled off in December, staying unchanged from the previous month's 3.1%, Iowa Workforce Development reported Friday.

That's despite an almost 90% jump in initial unemployment claims from November, to 20,138. Claims usually rise sharply in December as construction work slows.

State adds 3,400 jobs for the year

The report said Iowa employers reported adding 2,400 jobs in December for a year-over-year increase of 34,200 jobs in the state, and that in 2022, the state added jobs in all but two months. Iowa added 43,000 jobs in 2021.

Iowa's labor force participation rate ― the proportion of people holding or actively seeking jobs ― continued to lag pre-pandemic levels. It fell 0.1% from November to 67.6% in December and remained below the 10-year high of 70.6% recorded in the summer and early fall of 2019.

Previously:Iowa's unemployment rate rose for fourth consecutive month in November

Iowa job picture brighter than nation's

Both Iowa's unemployment and labor participation rates compared favorably to those of the nation overall, which were 3.5% and 62.3%, respectively, for December.

“Iowa ended 2022 in a much stronger position than where we were a year ago,” Iowa Workforce Development Director Beth Townsend said in a news release. “Individual industries certainly continue to feel shocks from high inflation and the ripples of a difficult business cycle. But overall, Iowa is now much stronger heading into 2023."

Previously:Iowa job growth continues in October despite recession fears

Education and health sector leads job gains; construction leads losses

The education and health services sector added the most jobs in Iowa in December, at 1,600. Professional and business services was next on the list, at 1,100 jobs added. The biggest loss, at 700 jobs, was in construction, which typically sees higher unemployment in the winter months. The next-largest losses were in government, at 600 jobs, and leisure and hospitality, at 400 jobs.

But for all of 2022, leisure and hospitality was the biggest gainer of jobs, at 13,000, followed by manufacturing, at 7,600. The only loser for the year was the information sector, which shed 500 jobs. The mining and construction sectors saw no change.

This article originally appeared on Des Moines Register: Recent uptick in Iowa unemployment pauses in December, report says

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