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Iowa’s unemployment rate remains at 2.8%, labor force participation falls in July

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The number of workers in Iowa’s labor force fell again in June, while the state’s unemployment rate remained unchanged at 2.8%, according to data released today by Iowa Workforce Development. The unemployment rate has not changed since April.

Since December, Iowa’s labor force participation rate has seen a drop each month. The rate was 66.4% in July, down from 66.5% in June. The state’s total workforce fell to 1,638,000 in July. The report said the majority of workers who left the workforce last month retired.

The total number of working Iowans dropped to 1,638,000 in July. That is 3,600 fewer than June and 21,200 fewer than one year ago, according to the report.

There were 47,600 unemployed Iowans in July, up from 46,600 in June. The number of job openings in the state was 56,000 at the time the report was released, the state agency said.

“July’s report provides evidence of a tightening national economy, consistent with what we are seeing across the country,” Beth Townsend, executive director of Iowa Workforce Development, said in a prepared statement. “Some industries, such as advanced manufacturing, have been under pressure for some time, and the impacts of that are beginning to appear in July’s data.”

The national unemployment rate increased to 4.3% in July, according to the Bureau of Labor Statistics’ report, released on Aug. 2. The U.S. added 114,000 nonfarm jobs in July.

In Iowa, professional and business services shed the most jobs (1,000) in July, the report said. Most of the jobs shed were within administrative support and waste management industries, but professional and scientific services also trended down.

The other losses were in manufacturing (800), trade, transportation and warehousing (500) and construction (400).

Education and health care added the most jobs this month (700), fueled by nursing and residential care facilities.