tamatoledonews.com DES MOINES (SPECIAL) owa’s seasonally adjusted unemployment rate climbed to 6.5 percent in July from 6.2 percent in June, as employers continued to reduce payrolls in response to current economic conditions. One year ago, the statewide jobless rate stood at 4.1 percent. Meanwhile, the U.S. unemployment rate eased slightly to 9.4 percent in July from 9.5 percent in June, primarily due to the nation’s labor force shrinking by 422,000 in July. The U.S. jobless rate was 5.8 percent one year ago.

“Recent signs at the national level indicate that the recession may soon be over,” said Elisabeth Buck, director of Iowa Workforce Development. “Even though the Iowa economy will continue to shed jobs for some time, the pace of layoffs is expected to moderate during third quarter.”

The statewide estimate of unemployed persons increased to 109,100 in July from 103,500 in June, and from 69,300 in July 2008. Over the past year, Iowa’s pool of unemployed has increased by 57 percent.

The total number of working Iowans edged down to 1,569,600 in July from 1,578,800 in June. Compared to July 2008, total employment is down 37,200.

Seasonally Adjusted Nonfarm Employment

Total nonfarm employment trended downward to 1,478,000 in July from 1,480,400 in June representing the sixth consecutive month of job losses for the state. Compared to July 2008, nonfarm employment is currently down 47,100. The majority of the job losses this month were concentrated in manufacturing, particularly in plants that manufacture durable goods products. The sector lost another 4,800 jobs in July due to ongoing recession-related job cuts and inventory shutdowns that typically occur in July. Trade and transportation and education and health posted smaller losses of 600 each. The largest gains for the month were reflected in leisure and hospitality and professional and business services, which advanced by 1,100 and 1,000, respectively.

Compared to last year, manufacturing has experienced the largest job cuts, down 30,900. Professional and business services has reduced payrolls by 11,000, and construction has shed 8,400. Conversely, education and health services and trade and transportation have each contributed 2,400, followed by smaller gains of 700 in government and 200 in finance.