Unemployment, Labor Force Participation Rates Unchanged in February
Iowa Workforce Development Communications
For Immediate Release
Date: March 27, 2025
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov
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Unemployment, Labor Force Participation Rates Unchanged in February
Benefits Remain at Historic Lows as a Percentage of Iowa Wages
DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment and labor force participation rates held steady in February amid modest job growth across many private industries. Meanwhile, the total amount of unemployment benefits Iowa paid remained near historic lows as a percentage of the wages covered by unemployment insurance.
Iowa’s seasonally adjusted unemployment rate was 3.3 percent in February, equal to January and up from 2.7 percent one year ago. The labor force participation rate was unchanged at 67.0 percent. Meanwhile, the U.S. unemployment rate increased to 4.1 percent in February.
The total number of unemployed Iowans increased to 57,300 in February from 56,600 in January. The total number of working Iowans fell by 600 to 1,663,600.
“February’s numbers remained steady, which indicated that we have sustained the large number of Iowans that returned to work in December and January,” said Beth Townsend, Executive Director of Iowa Workforce Development. “Overall, unemployment benefits still sit near a historic record low after adjusting for inflation. That means fewer Iowans need fewer weeks of benefits because of the steps we have taken to make our agency a reemployment agency. Having a robust reemployment program lessens the impact of layoffs on the individual, as well as our economy as a whole.”
Seasonally Adjusted Nonfarm Employment
Firms in Iowa shed 1,100 jobs in February, lowering total nonfarm employment to 1,594,800 jobs. This loss ends a streak of job gains starting in November. February’s loss was fueled in part by weak seasonal hiring (less hiring than expected based on previous seasonal fluctuations) at state government universities. Collectively, government (a sector that includes federal, state, and local political subdivisions, as well as schools, universities, and public hospitals) shed 3,400 jobs in February after a gain of 2,900 the previous month. Private industry added 2,300 jobs with most of these gains occurring within service industries. Following this month’s loss, total nonfarm employment trails last February’s mark by 7,400 jobs.
Health care and social assistance added 800 jobs in February to lead all sectors. This sector has also added jobs in five consecutive months with 3,700 jobs gained over that period. Private education increased by 700 jobs since January. This sector has added 1,100 jobs so far in 2025. Manufacturing added 500 jobs. These gains were primarily related to food production and animal processing. Private sector losses were much smaller in nature and were led by professional, scientific, and technical services (-800). This industry has shed jobs in three of the last four months, paring 2,200 jobs since October. Other losses were small and include information services (-300), financial activities (-200), and retail trade (-200).
Health care and social assistance has added the most jobs over the past 12 months (+5,800). Firms in this sector have shown a growing willingness to hire as the annual gain continues to expand. Wholesale trade has gained 1,100 jobs annually, and other services are up 500 jobs. Conversely, manufacturing has shed the most jobs over the last 12 months (-7,600). Most of these losses were in durable goods firms (-5,600). Construction is second in terms of annual loss (-3,400). This sector has shown little movement in staffing to begin the new year.
| Employment and Unemployment in Iowa, Seasonally Adjusted Data | |||||
|---|---|---|---|---|---|
| Change from | |||||
| February | January | February | January | February | |
| 2025 | 2025 | 2024 | 2025 | 2024 | |
| Civilian labor force | 1,720,800 | 1,720,800 | 1,707,200 | 0 | 13,600 |
| Unemployment | 57,300 | 56,600 | 46,500 | 700 | 10,800 |
| Unemployment rate | 3.3% | 3.3% | 2.7% | 0.0 | 0.6 |
| Employment | 1,663,600 | 1,664,200 | 1,660,600 | -600 | 3,000 |
| Labor Force Participation Rate | 67.0% | 67.0% | 67.0% | 0.0 | 0.0 |
| U.S. unemployment rate | 4.1% | 4.0% | 3.9% | 0.1 | 0.2 |
| Nonfarm Employment in Iowa, Seasonally Adjusted Data | |||||
| Total Nonfarm Employment | 1,594,800 | 1,595,900 | 1,602,200 | -1,100 | -7,400 |
| Mining | 2,200 | 2,200 | 2,300 | 0 | -100 |
| Construction | 82,600 | 82,600 | 86,000 | 0 | -3,400 |
| Manufacturing | 217,600 | 217,100 | 225,200 | 500 | -7,600 |
| Trade, transportation and utilities | 312,500 | 312,000 | 312,300 | 500 | 200 |
| Information | 17,700 | 18,000 | 18,100 | -300 | -400 |
| Financial activities | 105,200 | 105,400 | 106,700 | -200 | -1,500 |
| Professional and business services | 143,800 | 144,100 | 146,400 | -300 | -2,600 |
| Education and health services | 244,500 | 243,000 | 239,600 | 1,500 | 4,900 |
| Leisure and hospitality | 143,300 | 142,800 | 143,500 | 500 | -200 |
| Other services | 56,200 | 56,100 | 55,700 | 100 | 500 |
| Government | 269,200 | 272,600 | 266,400 | -3,400 | 2,800 |
| Data Above Subject to Revision | |||||
| Unemployment Insurance Claims for Iowa | |||||
|---|---|---|---|---|---|
| % Change from | |||||
| February | January | February | January | February | |
| 2025 | 2025 | 2024 | 2025 | 2024 | |
| Initial claims | 9,255 | 15,581 | 7,948 | -40.6% | 16.4% |
| Continued claims | |||||
| Benefit recipients | 28,012 | 35,588 | 25,110 | -21.3% | 11.6% |
| Weeks paid | 91,781 | 114,389 | 87,760 | -19.8% | 4.6% |
| Amount paid | $50,245,746 | $61,284,671 | $46,568,363 | -18.0% | 7.9% |
MEDIA ALERT: Local data for February 2025 will be posted to the IWD website on Tuesday, April 1, 2025. Statewide data for March 2025 will be released on Thursday, April 17, 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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