Introduction

In March, Iowa reported a net loss of 1,500 jobs. Most of the job loss was driven by 2,000 lost jobs in professional and business services employment. Alongside the revised February numbers, the March employment update brings Iowa’s cumulative nonfarm job growth for 2025 to -500. This marks the lowest cumulative job growth in March nonfarm employment among the five post-pandemic years.

Iowa’s labor market continues to demonstrate resilience in key areas. The unemployment rate grew 0.1% to 3.4%. Labor force participation rate (LFPR) held firm at 67%. Nationally, Iowa’s labor market metrics continue to stand out despite the slight uptick in unemployment. The state rank 15th for the lowest unemployment rate among all 50 states, down two spots, and holds the 9th-highest LFPR. These rankings underscore Iowa’s ability to maintain a competitive and robust labor market, even as month-to-month employment figures fluctuate. However, if the trend in month-to-month job losses continues, the labor market could show signs of weakness.

Key Findings—Iowa March 2025 Employment Data

• In March, Iowa lost 1,500 jobs. Only 4 of 11 major sectors contributed to this loss.
  • The professional and business services sector lost 2,000 jobs. The next largest loss was leisure and hospitality at 900 jobs lost.
  • Trade, transportation, and utilities saw the largest monthly increase, gaining 700 jobs.
• Revisions indicate February performed worse than initially expected.
  • State Revisions: The state reported 1,000 fewer jobs in February 2025 compared to pre-revised February 2025.
  • Industry Revisions: Leisure and hospitality (-400), professional and business services and education and health services (-300) contributed the most to the downward revision.
• Iowa has the 15th lowest unemployment rate in the nation, down two from last month.
  • Unemployment: Iowa’s unemployment was 3.4% in March, up 0.1% from last month.
• Iowa ranks 9th highest in labor force participation, unchanged from last month.
  • LFPR: Iowa’s LFPR was 67.0% in March, unchanged from last month.
• So far, from December ‘24 to March ‘25, the private sector has gained 100 jobs. 
  • Total nonfarm employment has lost 500 jobs in this period. This marked the lowest cumulative job growth in March nonfarm employment among the five post-pandemic years.

Establishment vs. Household Survey 

• According to both the employment figures from the BLS survey of establishments (CES) and the number of people employed from the BLS survey of households (LAUS), Iowa has yet to recover to a pre-pandemic employment-to-population ratio.
• Based on the establishment survey, employment fell by 1,500 or -0.09%.
• Based on the household survey, employment grew by 401 jobs or 0.02%.

Revisions 

• United States – In March, the BLS revised February 2025 seasonally adjusted total nonfarm employment nationally upward by 16,200 (-0.01%).
• Iowa – In March, the BLS revised February 2025 seasonally adjusted total nonfarm employment in Iowa downward by 1,000 (-0.06%).
• Iowa by Sector – In March, revised February 2025 seasonally adjusted total nonfarm employment for the following major sectors:
  • Construction upward by 300 jobs.
  • Other services upward by 100 jobs.
  • Manufacturing and government both downward by 100 jobs.
  • Trade, transportation, and utilities downward by 200 jobs.
  • Professional and business services, and education and health services both downward by 300 jobs.
  • Leisure and hospitality downward by 400 jobs

A Deeper Dive into Iowa Industries (BLS CES Survey) 

• Based on the establishment survey, the net decline of 1,500 jobs in March was driven by net job losses in only 4 of 11 major sectors.
  • Professional and business services lost 2,000 jobs (-1.39%).
  • Leisure and hospitality lost 900 jobs (-0.63%).
  • Manufacturing lost 300 jobs (-0.14%).
  • Financial activities lost 100 jobs (-0.10%)
• Five  sectors saw a net gain in jobs from February to March.
  • Trade, transportation, and utilities gained 700 jobs (0.22%)
  • Construction gained 500 jobs (0.60%).
  • Education and health services gained 300 jobs (0.12%).
  • Other services gained 200 jobs (0.36%).
  • Information gained 100 jobs (0.56%).
  • Mining and logging and total government remained unchanged.
• So far, from December ‘24 to March ‘25, the private sector has gained 100 jobs.
  • Total nonfarm employment, which includes government employment, has lost 500 jobs in this same period. This is the lowest cumulative growth in March nonfarm employment among the five post-pandemic years.  

Iowa Labor Force Update 

• In March, Iowa’s LFPR remained unchanged at 67.0%, 2.5% below the pre-pandemic LFPR of 69.5% in January 2020.
• Iowa’s unemployment rate in March grew by 0.1% to 3.4%.
• Iowa ranked 15th lowest in unemployment rate among all 50 states, down two spots from last month.

Data Sources

The data in this report are compiled from monthly and annual data released by the U.S. Bureau of Labor Statistics (BLS), including data from the Current Employment Statistics (CES) survey and the Local Area Unemployment Statistics (LAUS) Survey. Some data are sourced directly from BLS and others are retrieved from FRED.