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Iowa unemployment rate drops to 5.1 percent

DES MOINES (SPECIAL) – Iowa’s job losses eased in April, while the state’s seasonally adjusted unemployment rate dropped to 5.1 percent from 5.2 percent in March. One year ago, Iowa’s jobless rate was reported at 4.0 percent. he U.S. unemployment rate climbed to 8.9 percent in April from 8.5 percent in March, and compared with 5.0 percent for April of 2008.

“The pace of job losses slowed in April, suggesting that the Iowa economy may be in the early stages of a turn,” said Elisabeth Buck, director of Iowa Workforce Development. “However, the labor market is still very weak, and any recovery is expected to be modest and prolonged.”

The total number of working Iowans edged up to 1,590,000 in April from 1,587,300 in March, but was 18,500 below the year ago level of 1,608,500.

Iowa’s pool of unemployed workers trended downward to 85,400 in April from 87,500 in March. The statewide estimate of unemployed persons was reported at 66,900 in April 2008.

Seasonally Adjusted Nonfarm Employment

Statewide nonfarm employment dropped to 1,491,800 in April; 1,600 less than the prior month’s total of 1,493,400. The April figure was the lowest since December 2005, and continued a three-month decline. Nonetheless, the April loss of 1,600 jobs was substantially less than the previous two months’ average loss of 9,300. Five super sectors reported gains in April; six reported losses.

Trade and transportation added 2,000 jobs in April, fueled by a gain of 1,000 in retail trade and 800 in wholesale trade. Government increased by 1,700 in April, primarily due to local governments hiring staff for the summer months. Manufacturing posted a small gain of 100; this was the first increase for the sector since August of 2008. Leisure and hospitality shed 1,700 jobs, and finance reduced staff by 1,000.

Compared to last year, total nonfarm employment has contracted by 32,800. Manufacturing has dropped 20,900, accounting for over 60 percent of the annual loss. Professional and business services reflected the second-largest drop, down 10,200. Trade and transportation and education and health have expanded the most over the year, adding 4,900 and 4,400 respectively.