Iowa employers shed 3,300 jobs in December, primarily in the areas of trade, transportation, utilities, and manufacturing, according to newly released data. Iowa’s total nonfarm employment in December was 1,595,500, down from 1,598,800 in November. The trade, transportation, and utilities sector experienced the largest job losses, with 2,700 positions eliminated, while manufacturing lost 1,300 jobs. Iowa’s unemployment rate in December remained at 3.5%, the same as November, but up slightly from 3.3% a year ago. Iowa’s labor force participation rate in December was 67.7%, an increase from 66.9% a year prior. the U.S. unemployment rate in December was 4.4%.To read the entire report, click here.
Iowa Employment Report – December 2025
Table of Contents
Iowa’s employment landscape experienced a downturn in December, as employers across the state cut 3,300 jobs. The most significant declines occurred in trade, transportation, and utilities, and manufacturing, raising questions about the state’s economic momentum heading into the new year.The state’s total nonfarm employment stood at 1,595,500 in december, a decrease from the 1,598,800 recorded in November.
Sector-Specific losses
The trade, transportation, and utilities sector bore the brunt of the job losses, shedding 2,700 positions. Manufacturing also contributed to the decline, with 1,300 fewer jobs reported in December. these losses were partially offset by gains in other sectors, but the overall trend indicates a softening in the state’s job market.
Iowa’s unemployment rate remained unchanged at 3.5% in December, mirroring the November rate. However,this figure represents a slight increase compared to the 3.3% unemployment rate recorded a year earlier.
Labor Force Participation
Despite the job losses, Iowa’s labor force participation rate continued it’s upward trend, reaching 67.7% in December. This is an increase from the 66.9% recorded in December of the previous year, suggesting that more Iowans are actively seeking employment. For comparison, the U.S.unemployment rate in December was 4.4%.
A rising labor force participation rate can be a positive sign, indicating confidence in the job market, even amidst short-term employment fluctuations.
The data provides a snapshot of the state’s economic health at the close of 2025, and economists will be closely watching future reports to determine whether this trend continues.
