Iowa’s Unemployment Rate Decreases to 3.5 Percent in November
Iowa Workforce Development Communications
For Immediate Release
Date: January 7, 2026
Contact: Jesse Dougherty
Telephone: 515-725-5487
Email: communications@iwd.iowa.gov
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Labor Force Participation Rate Holds Steady at 67.5 Percent
DES MOINES, IOWA – Iowa’s seasonally adjusted unemployment rate was 3.5 percent in November – up from 3.3 percent one year ago but down from 3.7 percent in September. There is no October rate due to the government shutdown. The labor force participation rate was 67.5 percent in November, equaling the September rate and 0.6 percentage points higher than the November 2024 rate of 66.9 percent. The U.S. unemployment rate rose to 4.6 percent in November.
The total number of unemployed Iowans increased by 5,100 compared to November 2024.
The total number of working Iowans was 1,683,000 in November. This figure is 22,400 higher than one year ago. Iowa’s labor force saw an increase of 27,500 individuals compared to November 2024.
“November’s report is an indication that the increase we’ve seen over the last few months in labor force participation is translating to more people working,” said Beth Townsend, Executive Director of Iowa Workforce Development. “Led by gains in health services, wholesale trade, and construction, Iowa saw strong hiring nearly across the board in November and ended with 9,000 more jobs than the year before – a trend we hope continues in future reports.”
Seasonally Adjusted Nonfarm Employment
Iowa establishments added 4,600 jobs in November, raising total nonfarm employment to 1,599,800. This increase is significant, particularly when compared to the previous 10-year average October-to-November change of -130 jobs. Gains this month were fueled by multiple industries with educational and health services and trade, transportation and warehousing gaining a slight edge, adding 1,100 and 1,000 jobs, respectively. Additionally, construction fared well in November, gaining 900 jobs, partially attributable to the milder late fall weather.
Within private industries, employment gains in health services (+900), wholesale trade (+800) and the previously mentioned gains in construction represented the bulk of the statewide increase. Professional and business services added jobs as a result of gains in administrative and support services (+1,000) partially offset by a small loss in professional, scientific and technical services (-200). Government pared 200 jobs.
Over the past 12 months, total nonfarm employment is up 9,000 jobs. Private industry overall is up 7,400 jobs since last November. Construction (+8,100) and private education and health services (+5,800) experienced the greatest gains. The bulk of the change in private education and health services was attributable to increased employment in health care and social assistance (+4,300). Retail trade contributed to the gains with an additional 3,400 jobs. Professional and business services has trimmed jobs from one year ago (-3,400). Other industries paring jobs include: leisure and hospitality (-3,200), financial activities (-1,600) and manufacturing (-1,000). This loss is due to cutbacks at durable goods factories (-2,300).
| Employment and Unemployment in Iowa, Seasonally Adjusted Data | |||||
|---|---|---|---|---|---|
| Change from | |||||
| November | October | November | October | November | |
| 2025 | 2025 | 2024 | 2025 | 2024 | |
| Civilian labor force | 1,744,700 | - | 1,717,200 | - | 27,500 |
| Unemployment | 61,700 | - | 56,600 | - | 5,100 |
| Unemployment rate | 3.5% | - | 3.3% | - | 0.2 |
| Employment | 1,683,000 | - | 1,660,600 | - | 22,400 |
| Labor Force Participation Rate | 67.5% | - | 66.9% | - | 0.6 |
| - | |||||
| U.S. unemployment rate | 4.6% | - | 4.2% | - | 0.4 |
| Nonfarm Employment in Iowa, Seasonally Adjusted Data | |||||
| Total Nonfarm Employment | 1,599,800 | 1,595,200 | 1,590,800 | 4,600 | 9,000 |
| Mining | 2,100 | 2,100 | 2,200 | 0 | -100 |
| Construction | 90,200 | 89,300 | 82,100 | 900 | 8,100 |
| Manufacturing | 217,600 | 217,200 | 218,600 | 400 | -1,000 |
| Trade, transportation and utilities | 312,000 | 311,000 | 310,600 | 1,000 | 1,400 |
| Information | 18,100 | 17,900 | 17,800 | 200 | 300 |
| Financial activities | 104,000 | 103,900 | 105,600 | 100 | -1,600 |
| Professional and business services | 141,600 | 140,800 | 145,000 | 800 | -3,400 |
| Education and health services (private) | 247,500 | 246,400 | 241,700 | 1,100 | 5,800 |
| Leisure and hospitality | 140,000 | 139,600 | 143,200 | 400 | -3,200 |
| Other services | 57,000 | 57,100 | 55,900 | -100 | 1,100 |
| Government* | 269,700 | 269,900 | 268,100 | -200 | 1,600 |
| *Includes publicly owned education and health services | |||||
| Data Above Subject to Revision | |||||
| Unemployment Insurance Claims for Iowa | |||||
|---|---|---|---|---|---|
| % Change from | |||||
| November | October | November | October | November | |
| 2025 | 2025 | 2024 | 2025 | 2024 | |
| Initial claims | 9,148 | 7,435 | 11,841 | 23.0% | -22.7% |
| Continued claims | |||||
| Benefit recipients | 9,669 | 9,527 | 14,109 | 1.5% | -31.5% |
| Weeks paid | 26,002 | 27,593 | 35,763 | -5.8% | -27.3% |
| Amount paid | $13,804,346 | $14,800,212 | $19,211,660 | -6.7% | -28.1% |
MEDIA ALERT: Local data for November 2025 will be posted to the IWD website on Thursday, January 15, 2026.
Visit iowalmi.gov for more information about current and historical data, labor force data, nonfarm employment, hours and earnings, and jobless benefits by county.
*October 2025 labor force data is not available due to the absence of data collection due to the federal government shutdown.
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