The number of Iowans working in the state increased to 1,664,100 in January, the highest it’s been since June 2023, new data from Iowa Workforce Development shows.

In December, 1,661,400 Iowans were employed, and in January 2024, 1,659,700 were. The last time there were more than 1,664,000 people employed in Iowa was in June 2023. That month, 1,664,300 Iowans were employed.

The largest increases in the labor force in January were among women between 45 and 54 years old and between 20 and 24 years old, according to the state agency.

“January’s report showed a large number of people entering Iowa’s labor force and immediately finding work,” Beth Townsend, the agency’s executive director, said in a news release. “Despite recent layoffs in some industries, Iowa grew jobs in January. … Growing labor force participation is a welcome improvement to see early in 2025.”

In January, Iowa’s labor force participation rate was 67%, up from December’s revised rate of 66.9%. (The U.S. Department of Labor requires states to annually revise and update labor force data because of new data that is available, including updated information from the U.S. Census Bureau.)

Iowa establishments added 1,400 jobs in January, raising total nonfarm employment to 1,594,200. The government sector (which includes federal, state and local governments, schools, universities, and public hospitals) added 2,900 jobs in January. The growth came mostly from state universities that retained more jobs than seasonally expected, according to the agency.

January’s employment report includes an area of concern: Private industries shed 1,500 jobs between December and January, according to the agency.

Many private businesses are looking to pare back expenses, given the uncertain economic environment, according to Ben Ayers, a senior economist with Nationwide.

“Uncertainty caused by tariffs for manufacturing and agriculture will be an area to closely watch within Iowa over coming months,” Ayers said in a prepared statement. “For now, employment trends within the state show more cautious hiring activity as many businesses assess profitability and expansion plans in 2025.”

Iowa’s unemployment rate in January was 3.3%, the same as it was in December.

The U.S. unemployment rate in January was 4%, down slightly from December when it was 4.1%.

To read the entire report, click here.