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“The state’s deep cuts in nonfarm employment in December sent a signal that the long-awaited economic recovery remains elusive,” said Elisabeth Buck, director of Iowa Workforce Development. “Companies are still reluctant to hire, making it increasingly difficult for unemployed workers to find jobs.”

The statewide estimate of unemployed workers edged down to 110,800 in December from 111,900 in November, but was 37,100 higher than the December 2008 level of 73,700.

The total number of working Iowans rose slightly to 1,573,000 in December from 1,570,300 in November. One year ago, total employment was 29,900 higher at 1,602,900.

Total nonfarm employment in Iowa decreased by 13,200 in December, bringing the total to 1,468,800. The drop was significantly more than expected, and followed two consecutive months of increases. The losses were attributable to the extremely harsh weather that occurred during December, coupled with the prolonged weakness in the Iowa economy. All major sectors contracted in December with the exception of finance, up 600; and government, which remained unchanged.

Trade and transportation declined the most in December, down 4,200 jobs. The majority of the losses were concentrated in retail trade, which reflected a weak hiring pattern for this year’s holiday season. Wholesale trade shed 1,100 jobs; many were related to farm supply and equipment merchants. Elsewhere, leisure and hospitality dropped 3,300 jobs. Restaurants accounted for the largest portion of the drop, down 2,000 jobs. Weather also curtailed many construction projects, causing a drop of 1,900 in the construction sector. Both durable and nondurable goods manufacturing experienced job cuts, resulting in a loss of 1,800 for overall manufacturing. Other services, health services and professional and business services posted drops of less than 1,000.

Compared to last December, the Iowa economy has lost 40,100 jobs. Manufacturing still leads all sectors in terms of losses, down 19,900 over the year. Trade and transportation and construction followed with losses of 7,900 and 7,700, respectively. Education and health services remained the most resilient sector, adding 2,600 jobs since December 2008.

MEDIA ALERT: An audio cut of comments about Iowa’s labor market situation is available by calling (515) 281-6057. Local data for December can be accessed from the Web on Tuesday, January 26, 2010. State and local data for January 2010 will be released on March 10, 2010.

Employment and Unemployment In Iowa, Seasonally Adjusted Data                     Change From   December 2009 November 2009 December 2008 November 2009 December 2008 Civilian Labor Force 1,683,800 1, 682,200 1,676,500 1,600 7,300 Unemployment 110,800 111,900 73,700 -1,100 37,100 Unemployment Rate 6.6% 6.7% 4.4% -0.1 2.2 Employment 1,573,000 1,570,300 1,602,900 2,700 -29,900                 U.S. Employment Rate 10.0% 10.0% 7.4% 0.0 2.6             Nonfarm Employment In Iowa, Seasonally Adjusted Data             Total Nonfarm Employment 1,468,800 1,482,000 1,508,900 -13,200 -40,100 Mining 2,000 2,100 2,100 -100 -100 Construction 62,800 64,700 70,500 -1,900 -7,700 Manufacturing 202,400 204,200 222,300 -1,800 -19,900 Trade, Transportation and Utilities 300,100 304,300 308,000 -4,200 -7,900 Information 32,100 32,300 33,000 -200 -900 Financial Activities 104,100 103,500 103,200 600 900 Professional and Business Services 114,700 115,400 113,500 -700 1,200 Education and Health Services 211,700 212,500 209,100 -800 2,600 Leisure and Hospitality 130,600 133,900 135,100 -3,300 -4,500 Other Services 55,700 56,500 57,800 -800 -2,100 Government 252,600 252,600 254,300 0 -1,700

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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