Iowa Unemployment Rate Increases to 3.7 Percent

Posted 18 July, 2025
In June, for the second consecutive month, 3,900 Iowans entered the labor force in June. The increase in workers brought Iowa’s labor force participation rate to 67.4 percent, up from 67.3 percent in May. At the same time, Iowa’s seasonally adjusted unemployment rate rose slightly in June to 3.7 percent (up from 3.6 percent in May), and the U.S. unemployment rate decreased to 4.1 percent.

The total number of working Iowans increased to 1,671,800 in June. This figure is 2,700 higher than May and 8,800 higher than one year ago.

The total number of unemployed Iowans increased to 63,700 in June from 62,400 in May.

“More Iowans joined the workforce in June, increasing the state's labor force by 3,900, with significant participation increases among women 45 and older,” said Beth Townsend, Executive Director of Iowa Workforce Development. “Healthcare and construction accounted for more than 3,700 of the new jobs following a trend for both industries in 2025. With over 51,000 jobs posted on IowaWORKS.gov, anyone looking for a new or better job remains in a good position to find one.”