Summary
Iowa lost 4,400 nonfarm jobs in February, with government employment falling by 1,100 and private-sector employment declining by 3,300. The BLS also revised January 2026 nonfarm employment downward by 3,600 jobs. Taken together, Iowa's cumulative job growth so far in 2026 marks the weakest February print of the post-pandemic period. Over the past year, Iowa has shed 17,700 jobs (-1.3%), ranking 45th nationally in job growth rate—well below the national average of +0.2%. The state's unemployment rate held steady at 3.4% (10th-lowest nationally), while labor force participation slipped to 67.8% (4th-highest).
Key Findings
- Iowa's job growth rate ranks poorly over the last year. Iowa's -1.3% nonfarm growth rate ranks 45th among all states over the last 12 months. The national average was 0.2%.
- Job growth was weak in February. Iowa lost 4,400 total nonfarm jobs, led by private education & health services, trade, transportation & utilities, and government.
- Iowa has lost 1,600 jobs in the first two months of 2026, marking the weakest January–February performance of the post-pandemic period and a reversal from the 900-job gain over the same stretch in 2025.
- Only 3 of Iowa's 11 job sectors grew over the last year. Education & health services, mining & logging, and construction grew, while all other sectors saw declines.
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