The state unemployment rate in Iowa increased slightly by one-tenth in April, reaching 3.5%. According to Beth Townsend, director of Iowa Workforce Development, the rise is due in part to a larger number of people returning to the workforce. We had 5,000 Iowans come back into the workforce, that’s a really good sign, Townsend stated.

On the downside, Iowa’s manufacturing sector continues to experience job losses, accounting for a reduction of 7,400 jobs over the past year due to ongoing economic challenges faced in 2024. Townsend also highlighted that it’s too early to ascertain the effect of recently imposed tariffs on the job market.

On the brighter side, private service industries were the main contributors to job gains in April, creating approximately 41,000 new roles. “Professional and business services gained the most, said Townsend. Construction also added 13,000 jobs in April, marking the third consecutive month of increase.

Townsend emphasized that adding more individuals to the workforce is key for the economy’s continued growth. She hopes to see an additional 30,000 people join the workforce over the next six months, aiming to approach pre-pandemic figures.

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