Unemployment Rate 5.4 Percent in January; Job Growth Still Slow in State
IOWA CITY, Iowa (March 13, 2012) — Analysts at the nonpartisan Iowa Policy Project noted the unemployment rate dipped to 5.4 percent in January, down from 5.6 percent in December, as payroll jobs also improved by 3,700. IPP, which tracks employment trends in Iowa, released this statement from Executive Director David Osterberg:
Employment over the last year in Iowa is showing good signs, though growth remains very slow. Payroll data showed a net gain of over 9,000 jobs during the year, with about 40 percent of those jobs added in January.
Especially good news was the fact that the state gained nearly 12,000 manufacturing jobs from January 2011 to January 2012. These jobs generally are higher paid and often have benefits. However, the state also lost 4,000 government jobs and 3,200 professional and business services jobs, also generally better paid than jobs in some sectors.
Now that the economy seems to be picking up with the unemployment rate dropping to 5.4 percent, it is time to question the quality of the jobs we are getting back. And it is time to stop shedding jobs in the public sector. That is one area that the governor and legislature have some control over.
The state still remains almost 41,000 jobs behind where it was at the start of the last recession in December 2007. Still, things are looking better.
— Nonfarm jobs are 43,900 behind the May 2008 peak of 1,528,200, and 40,900 behind the level at the start of the last recession in December 2007.
— The unemployment rate was 5.4 percent in January, down from 5.6 percent in December and down from 6.1 percent a year earlier.
— The labor force, those working or looking for work, was virtually unchanged (up 100), but slightly down (1,900) over the year.
— Initial unemployment claims were down — by 37 percent, to 19,846 — for the month, and down 6.3 percent over the year.
— Nonfarm jobs are above year-ago level for the 16th month in row.
— Manufacturing is the top-gaining job sector over the past 12 months, up 11,800, followed by construction at 3,100 and trade, transportation and utilities at 2,900. Manufacturing led gains for the month at 3,500, with leisure and hospitality up 3,200 and “other” services up 1,600.
— Government jobs declined by 4,000 over the year, and professional and business services fell by 3,200. For the month, education and health services led declines at 2,500, and professional and business services dropped 1,200.
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