September 18, 2026

Summary

Iowa added 2,400 nonfarm jobs in August, with private-sector employment rising by 1,900 and government employment rising by 500. The BLS also revised July 2026 nonfarm employment upward by 300 jobs. Taken together, Iowa’s cumulative job growth so far in 2026 stands at 7,800 jobs since December 2025—well ahead of the 9,600-job loss recorded at this point last year. Iowa has added 700 jobs (+0.0%) over the last twelve months, an improvement from the 1,800-job loss reported last month. In August, Iowa ranked 38th nationally in job growth rate, one spot higher than reported in July but still below the national average of +0.4%. Despite weak annual growth, Iowa has the 8th-lowest unemployment rate in the nation at 3.2% and the 3rd-highest labor force participation rate at 67.0%. At the metro level, all eight of Iowa’s major metropolitan areas lost jobs over the year.

Key Findings

  • Iowa’s job growth rate improved over the last year, but continues to rank poorly. Iowa’s +0.0% nonfarm growth rate ranks 38th among all states over the last 12 months, an improvement of one spot. The national rate was 0.4%.

  • Iowa added 2,400 nonfarm jobs in August. This was led by gains in manufacturing and education & health services.

  • Iowa has gained 7,800 jobs in the first eight months of 2026. That is well ahead of the 9,600 jobs lost by this point last year.

  • All eight of Iowa’s major metro areas lost jobs over the last year at a combined decline of roughly 8,800. This means every net job Iowa added came from outside its metropolitan areas.

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

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