Iowa unemployment rate hits 6.5 percent, highest since October 1986

DES MOINES - Iowa’s seasonally adjusted unemployment rate climbed to 6.5 percent in July from 6.2 percent in June, as employers continued to reduce payrolls in response to current economic conditions. One year ago, the statewide jobless rate stood at 4.1 percent. Meanwhile, the U.S. unemployment rate eased slightly to 9.4 percent in July from 9.5 percent in June, primarily due to the nation’s labor force shrinking by 422,000 in July. The U.S. jobless rate was 5.8 percent one year ago.

“Recent signs at the national level indicate that the recession may soon be over,” said Elisabeth Buck, director of Iowa Workforce Development. “Even though the Iowa economy will continue to shed jobs for some time, the pace of layoffs is expected to moderate during third quarter.”

The statewide estimate of unemployed persons increased to 109,100 in July from 103,500 in June, and from 69,300 in July 2008. Over the past year, Iowa’s pool of unemployed has increased by 57 percent.

The total number of working Iowans edged down to 1,569,600 in July from 1,578,800 in June. Compared to July 2008, total employment is down 37,200.