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Evansdale Today
By the People, for the People
Iowa Unemployment Rate Holds Steady in January
State adds 6,400 jobs, sees increase in labor force participation
Apr. 9, 2026 at 3:34am
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Iowa's labor market holds steady as the state adds jobs and sees an increase in workforce participation.Evansdale TodayAccording to Iowa Workforce Development director Beth Townsend, Iowa's unemployment rate remained at 3.4% in January, unchanged from the revised December figure. The state's labor force participation rate also increased to 67.9%, up from 67.7% the previous month. Iowa added 6,400 jobs in January, primarily in private industries like professional services, construction, manufacturing, and healthcare.
Why it matters
Iowa's steady unemployment rate and growing labor force participation are positive signs for the state's economic recovery, though seasonal declines in retail and hospitality jobs serve as a reminder that the recovery remains uneven across different sectors.
The details
The January unemployment numbers reflect the U.S. Department of Labor's annual revision of labor statistics. While the December unemployment rate was revised down one-tenth of a percent to 3.4%, that same 3.4% figure was reported for January. Iowa added 6,400 jobs in the month, with the largest gains in professional and business services (1,800 jobs), construction (1,300), manufacturing (1,000), and education and health services (1,100). However, the retail and hospitality sectors saw declines of 200 jobs, which Townsend attributed to typical seasonal patterns.
- The U.S. Department of Labor conducted its annual labor force revisions in January 2026.
- Iowa's December 2025 unemployment rate was revised down to 3.4%.
- Iowa's January 2026 unemployment rate held steady at 3.4%.
The players
Beth Townsend
Director of Iowa Workforce Development, the state agency that oversees employment and job training programs.
What they’re saying
“December was revised to 3.4%, which is the number that was released today for January. So we held steady on unemployment.”
— Beth Townsend, Director, Iowa Workforce Development
“Our labor force participation rate increased to 67.9% which is up from 67.7% in December. We added 6,400 jobs between December and January. And we have more Iowans in the workforce, about 17,000 more now than we did in January of 2025. So those are all good signs.”
— Beth Townsend, Director, Iowa Workforce Development
What’s next
The revised February 2026 unemployment numbers for Iowa are expected to be released in a couple of weeks, providing more insight into the state's economic trends.
The takeaway
Iowa's steady unemployment rate and growing labor force participation are positive signs for the state's economic recovery, though seasonal declines in retail and hospitality jobs serve as a reminder that the recovery remains uneven across different sectors.
