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

The state's unemployment rate continued to creep up in November as more Iowa residents reported being out of work, according to new federal data released Thursday.

The U.S Bureau of Labor Statistics estimated in its latest monthly survey that about 2,700 more Iowans were out of work in November, sending the state's unemployment rate to 3.1% from 2.9% in October. The unemployment rate has increased in every monthly survey since July, when Iowa sported a 2.5% rate.

The retail trade and healthcare services sectors impacted Iowa's economy the most in November, shedding a combined 2,000 jobs.

Upon the data's release Thursday, Iowa Workforce Development Director Beth Townsend pointed out that the state typically loses many workers during the holiday season and the cold months. However, those losses are usually concentrated in jobs that require people to be outside. But the state's construction sector actually gained 1,000 jobs in November.

With a traditionally tight labor market, Iowa's unemployment rate was still lower than that of the country's overall; the national rate stood at 3.7% in November.

Teagan Hinrichs, a welder fabricator for Cemen Tech, does welding work on Thursday, Jan. 13, 2022, inside the concrete mixer manufacturing facility in Indianola.
Teagan Hinrichs, a welder fabricator for Cemen Tech, does welding work on Thursday, Jan. 13, 2022, inside the concrete mixer manufacturing facility in Indianola.

"On balance, Iowa employers kept hiring in November despite indications about the potential for future downturns,” Townsend said in a statement. "As companies continue to navigate the ripples from record inflation and supply chain issues, Iowa still has almost 79,000 open jobs. That far exceeds the number of unemployed in Iowa, and IWD will remain laser-focused on helping make connections between the unemployed and employers.”

A separate federal survey of employers indicated that Iowa companies continued to add workers in November, with payrolls increasing by 500. Among the sectors with the most growth:

  • Arts, entertainment and recreation: Added 1,000 jobs

  • Accommodation and food services: Added 1,000 jobs

  • Local and state governments: Added a combined 600 jobs

How does Iowa's economic recovery compare to the rest of the country's?

November was one of the state's slower months for economic recovery this year. The county overall added jobs at a rate about six times as fast as Iowa did.

Since the beginning of the pandemic recovery in May 2020, Iowa's job recovery has lagged that of the rest of the country. The state has recovered 98% of the jobs it lost from February 2020 to April 2020. The United States meanwhile, recovered all of its lost jobs by August.

What industries in Iowa still haven't recovered from the pandemic?

The healthcare and social assistance sector remains the greatest drag on Iowa's job recovery, with about 7,200 fewer workers in November than in February 2020, before the pandemic.

Durable goods manufacturers have about 2,900 fewer workers. Education services have about 1,800 fewer. Local governments have about 1,400 fewer.

What industries have added the most workers since the pandemic started?

The nondurable goods manufacturing sector has grown more in Iowa since February 2020 than any other industries, continuing a prepandemic trend. The sector has added 6,100 jobs since the start of the pandemic.

Retail trade has added 2,300 jobs. Arts, entertainment and recreation has added 2,200. Transportation has added 1,700.

Tyler Jett covers jobs and the economy for the Des Moines Register. Reach him at tjett@registermedia.com, 515-284-8215, or on Twitter at @LetsJett.

This article originally appeared on Des Moines Register: Iowa's unemployment rate rose for fourth consecutive month in November

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