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Iowa Unemployment Rate Remains at 6.8 Percent

“The June nonfarm employment figure is higher than one year ago, indicating that some progress has been made toward a recovery,” said Elisabeth Buck, director of Iowa Workforce Development. “Iowa is headed in the right direction, but hiring will need to gain strength to substantially lower the state’s unemployment rate.”

The state’s pool of unemployed workers decreased slightly to 113,600 in June from 114,800 in May. The number of unemployed was reported at 99,500 in June 2009.

The total number of working Iowans dropped to 1,567,100 in June from 1,571,600 in May. This was the lowest level reported for the year. One year ago, total employment stood at 1,572,400.

Iowa’s total nonfarm employment dropped to 1,475,700 in June from 1,479,300 in May. This month’s drop of 3,600 is the first decline in 2010, and only the second loss since September 2009. A large share of the monthly drop was caused by a reduction in temporary census employment. The June nonfarm employment figure marks the first time since October 2008 that payroll jobs have been positive year-over-year. Nonfarm employment was at 1,473,500 in June 2009.

Trade and transportation posted the largest loss in June, down 4,200 jobs. Within this sector, retail trade accounted for 2,400 of the loss. Elsewhere, construction continued to reflect weakness with a decline of 1,900. Other sectors reporting substantial drops were education and health and government, both down 1,800. On the other hand, a few sectors showed signs of recovery in June. Professional and business services, which is considered to be a leading indicator, added 2,400 jobs. Manufacturing added 2,000 jobs, all of which were contained in the hard-hit durable goods segment. Financial activities, which reflected a moderate decline in May, increased by 800 jobs in June.

Most of the state’s super sectors have displayed at least moderate improvement since June 2009. Trade and transportation is trailing the most from last June’s employment level, down 9,400 jobs. Construction is a distant second, down 2,700 jobs. Professional and business services has rebounded significantly since the start of the recession, and is leading all sectors in year-over-year improvement, up 8,300 jobs.

MEDIA ALERT: An audio cut of comments about Iowa’s labor market situation is available by calling (515) 281-6057. Statewide data for July will be released on Friday, August 20, 2010. Local data for July will be posted to the Web on Tuesday, August 24.

Employment and Unemployment In Iowa, Seasonally Adjusted Data                     Change from   June  2010 May 2010 June  2009 May  2010 June  2009 Civilian labor force 1,680,700 1, 686,400 1,671,900 -5,700 8,800 Unemployment 113,600 114,800 99,500 -1,200 14,100 Unemployment rate 6.8% 6.8% 6.0% 0.0 0.8 Employment 1,567,100 1,571,600 1,572,400 -4,500 -5,300                 U.S. unemployment rate 9.5% 9.7% 9.5% -0.2 0.0             Nonfarm Employment In Iowa, Seasonally Adjusted Data             Total nonfarm employment 1,475,700 1,479,300 1,474,500 -3,600 2,200 Mining 2,400 2,400 2,200 0 200 Construction 61,800 63,700 64,500 -1,900 -2,700 Manufacturing 204,600 202,600 200,700 2,000 3,900 Trade, transportation and utilities 293,300 297,500 302,700 -4,200 -9,400 Information 29,000 29,400 30,400 -400 -1,400 Financial activities 100,600 99,800 101,800 800 -1,200 Professional and business services 124,800 122,400 116,500 2,400 8,300 Education and health services 211,900 213,700 210,300 -1,800 1,600 Leisure and hospitality 132,800 130,600 132,600 2,200 200 Other services 59,000 59,900 57,500 -900 1,500 Government 255,500 257,300 254,300 -1,800 1,200

Visit www.iowaworkforce.org/lmi/laborforce/locallaborforce.html for county unemployment rates,
www.iowaworkforce.org/lmi/laborforce/index.html for current and historical labor force data and
www.iowaworkforce.org/lmi/empstat/msanonag.htm for detailed information on nonfarm employment.

Visit www.iowaworkforce.org/trends/wages.html for information on hours and earnings and
www.iowaworkforce.org/trends/uiclaimscomo.html to obtain a breakout of jobless benefits by county.

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