tamatoledonews.com – DES MOINES (SPECIAL) – Iowa’s seasonally adjusted unemployment rate fell to 6.8 percent in May from 6.9 percent in April, but was one percentage point higher than last May’s rate of 5.8 percent. Meanwhile, the U.S. unemployment rate dropped to 9.7 percent in May from 9.9 percent in April.

“Iowa’s hiring pattern in May closely mirrored the U.S. employment situation, as the hiring of temporary census workers drove most of the gain in nonfarm employment,” said Elisabeth Buck, director of Iowa Workforce Development. “However, the recovery is expected to be broader in scope in the months ahead.”

The statewide estimate of unemployed workers dropped to 115,400 in May from 116,400 in April. The number of unemployed persons stood at 96,200 one year ago.

The total number of working Iowans edged down to 1,571,600 in May from 1,572,800 in April. One year ago, the total number of employed persons was reported at 1,575,000.

Seasonally Adjusted Nonfarm Employment

Iowa’s total nonfarm employment grew by a slight 300 jobs in May, bringing the May figure to 1,476,300. Losses this month in manufacturing, trade and transportation, and finance more than offset the Federal government’s hiring of temporary census workers. Despite the small improvement noted in the May payroll data, there are positive signs that jobs losses and furloughs have mostly subsided. Following an upward revision to the April nonfarm employment estimate, the state has now added jobs for every month in 2010.

Manufacturing experienced the heaviest loss in May, down 1,500 jobs. Much of the drop in the sector was caused by the closing of a major meatpacking plant in western Iowa. Elsewhere, trade and transportation shed 900 jobs, with losses concentrated in wholesale trade, and finance decreased by 800. State government pared 500 jobs, which partially offset the census-related hiring that was reflected in federal government. Other services advanced by 900, and professional and business services added 700 jobs.

Compared to last May, total nonfarm employment is down by only 3,700. Professional and business services has added the most jobs over the year, up 5,700. This can be read as an encouraging sign since this sector was one of the first to lose jobs at the start of the recession. Education and health added 3,000 jobs since last May, and other services increased by 1,600. Trade and transportation and leisure and hospitality lost the most jobs over the year, down 5,900 and 2,900, respectively. Both sectors suffered losses due to weak consumer spending