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Report: Iowa businesses cut 2,400 jobs in September

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Iowa businesses shed 2,400 jobs in September, the first decline in job numbers since March, Iowa Workforce Development reported today.

Areas with the largest declines in jobs were health care and social assistance (1,000 jobs shed); transportation, warehouse and utilities (800 jobs shed); and education and health services (700 jobs shed).

Overall, Iowa’s seasonally adjusted total nonfarm employment in September was 1,577,400, down from August when it was 1,579,800, according to the agency’s monthly report. In September 2021, Iowa’s total nonfarm employment was 1,539,900.

The decline in jobs “is likely a one-month blip rather than a sign that the labor market has weakened,” Ben Ayers, a senior economist at Nationwide Mutual Insurance Co., said in a prepared statement. “The trend in job gains in Iowa remains solid and was on the uptrend over the summer.”

However, even though some sectors eliminated jobs, demand for workers continues. In September, the state’s job website listed more than 82,000 job openings, considerably more than the 46,500 unemployed workers in the state.

“While the number of openings has dropped from pandemic highs, there remain plenty of job opportunities within the state,” Ayers said.

Iowa’s unemployment rate was 2.7% in September, up slightly from August when it was 2.6%, the state agency reported. The state’s labor force participation rate remained at 67.7%.

“September’s survey illustrates several areas that will require close observation in the months ahead as Iowa’s employers continue to battle record inflation and uncertainty in our economic environment,” Beth Townsend, the agency’s director, said in a prepared statement. “Industries like manufacturing remain healthy, and Iowans still want to work, but the tightening national economy makes it more important than ever that we maintain our urgency about reemployment.”

The U.S. unemployment rate in September was 3.5%; the labor force participation rate was 62.3%.