Iowa Workforce Development director Beth Townsend says the December unemployment number held steady while the number of people looking for work increased.
“Our unemployment rate is 3.5%, and our labor force participation rate continues to increase, which is really good news, and we’re up to 67.7% in December,” she says. The total number of unemployed Iowans decreased by 400 compared to November. The total number of working Iowans was up 5,000 in December, and is 27,300 higher than one year ago.
Townsend says they’d love to get back to the pre-pandemic 69% workforce participation rate, and the state is trending in the right direction. “It’s a good sign that the unemployment rate is going down at the same time, because that means we are getting more people into the workforce and they’re actually employed. So, they’re not just looking for work, they’re actually finding work,” Townsend says.
The numbers show the retail sector lost 1,500 jobs in December manufacturing lost a combined 1,300 jobs.
Townsend says manufacturing lost the most jobs in 2025, but she says those workers have many options. “Iowans who have manufacturing skills are always at a premium because manufacturing, advanced manufacturing is one of the two largest industries in Iowa,” Townsend says. “So if you’ve worked in manufacturing and you get laid off, there are plenty of employers who are looking to hire you. Because you have the skills that they need.” Townsend says the demand for manufacturing workers is similar to some other areas. “Nursing, truck driving, where they are in such demand that they are rarely unemployed for any period of time,” she says.
The U.S. unemployment rate decreased to 4.4% in December.