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 amount of unemployment benefits 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 between 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.
