Iowa Jobs and Labor Force Update – March 2026

May 6, 2026

Summary

Iowa lost 500 nonfarm jobs in March, with government employment falling by 200 and private-sector employment declining by 300. The BLS also revised February 2026 nonfarm employment downward by 100 jobs. Taken together, Iowa’s cumulative job growth so far in 2026 marks the weakest March print of the post-pandemic period. Over the past year, Iowa has shed 20,700 jobs (-1.3%), ranking 46th nationally in job growth rate—well below the national average of +0.2%. Despite weak nominal growth, Iowa now has the 9th-lowest unemployment rate in the nation at 3.3% and the 3rd-highest labor force participation rate at 67.7%.

Key Findings

• Iowa’s job growth rate ranks poorly over the last year. Iowa’s -1.3% nonfarm growth rate ranks 46th among all states over the last 12 months. The national average was 0.2%
• Job growth was weak in March. Iowa lost 500 total nonfarm jobs, led by professional & business services, financial activities, and manufacturing.
• Iowa has lost 2,200 jobs in the first three months of 2026, marking the weakest first quarter performance of the post-pandemic period.
• 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.

Download the report above for a PDF version of the full labor market.