Iowa’s civilian work force continued to shrink in August, falling to a nine-month low, data released today from Iowa Workforce Development shows.

In December, Iowa’s labor force totaled 1,707,000. Since then, 23,200 people have exited the workforce, leaving the state with 1,683,800 workers, the state report shows.

The workforce decline also means a drop in the state’s labor force participation rate, which in August was 66.3%. The participation rate is the lowest it’s been since November 2020, when it was 66.2%. Iowa’s labor force participation rate has fallen every month since December.
The report attributed the workforce decline to retirements.

Iowa’s unemployment rate in August was 2.9%. The rate had hovered at 2.8% for four months. The U.S. unemployment rate was 4.2%, a slight decline from July, when it was 4.3%.

“National headwinds continue to cause Iowa employers some collective concern about uncertainty in the U.S. economy,” Beth Townsend, executive director of the state agency, said in a prepared statement. “This might explain the sluggish hiring we are seeing now.”

Total nonfarm employment in Iowa decreased slightly in August, shedding 600 jobs and lowering the total to 1,609,400 jobs. Manufacturing lost 300 jobs in August and has shed 2,200 jobs since August 2023, data shows. The sector in August had 224,400 jobs. Also in August, the professional and business services sector had 145,600 jobs, 1,800 fewer than the 147,400 it had in July.

To read the entire report, click here.