Iowa Jobs and Labor Force Update – July 2026

Experts:

August 21, 2026

Summary

Iowa shed 3,100 nonfarm jobs in July, with government employment falling by 2,100 and private-sector employment falling by 1,000. The BLS also revised June 2026 nonfarm employment upward by 2,100 jobs. Taken together, Iowa’s cumulative job growth so far in 2026 stands at 5,100 jobs since December 2025—well ahead of the 9,800-job loss recorded at this point last year. Iowa has shed 1,800 jobs (-0.1%) over the last twelve months, an improvement from 9,800 reported last month. In July, Iowa ranked 39th nationally in job growth rate, seven spots higher than reported in June but still below the national average of +0.2%. Despite weak annual growth, Iowa has the 9th-lowest unemployment rate in the nation at 3.2% and the 3rd-highest labor force participation rate at 67.1%. At the metro level, Des Moines–West Des Moines led the state in nominal job growth, adding 2,600 jobs from July 2025 to July 2026.

Key Findings

Iowa’s job growth rate improved over the last year, but continues to rank poorly. Iowa’s -0.1% nonfarm growth rate ranks 39th among all states over the last 12 months, an improvement of seven spots. The national average was 0.2%.
Iowa shed 3,100 nonfarm jobs in July. This was led by losses in government and trade, transportation & utilities.
Iowa has gained 5,100 jobs in the first half of 2026. That is well ahead of the 9,800 jobs lost by this point last year.
Only 4 of Iowa’s 11 job sectors grew over the last year. Construction, financial activities, education & health services, and information grew, while the remaining eight sectors were flat or declined.