JobWatch: Tough January, rough 2019


First net job loss over calendar year since Great Recession

IOWA CITY, Iowa (March 16, 2020) — Iowa payroll jobs dropped in January for the third straight month, the latest official numbers confirming a net job loss for 2019.

The nonpartisan Iowa Policy Project released this statement from executive director Mike Owen about the preliminary January numbers reported Monday by Iowa Workforce Development. February numbers are expected later this month.

“Today’s report does not bode well for Iowa jobs or the Iowa economy as we face the two-pronged challenge of public health threats and economic uncertainty with the spread of the coronavirus.

“Iowa had not experienced a full-year job loss since the last recession, and January did not improve that outlook. While the one-month job loss of 900 appears small, the longer look shows it to be part of a decline of 6,400 from January to January.

“For the calendar-year 2019, the total job loss was1,300. We had not seen a net job loss over a calendar year in Iowa since the Great Recession in 2008-09.

“Since January, the Reynolds administration has pushed a tax-cut proposal. The latest job news might change that strategy as this is no time to be reducing revenues. The state must use the funds we have to invest in supports for working families whom we can expect to struggle in the near term.

“Boosting access to health care, food assistance, unemployment benefits and paid sick leave are important components of a plan to invest in those who will determine the quality of Iowa’s future.”

Key Numbers for January 2020

Nonfarm jobs dropped by 900 to 1,584,500, the third straight monthly drop and fifth in six months.
Iowa’s unemployment rate held at the revised level of 2.8 percent, previously reported at 2.7 percent for December. That compares with 2.7 percent in January 2019.
Four of the 11 major job categories showed gains in January, and six showed declines, with no sector showing a change of 1,000 or more. Government showed the biggest gain, only 900, with construction at 800.
Manufacturing was down 800, as was trade and transportation.

Key Trends

Iowa lost a net 6,400 jobs from January 2019 to January 2020.

For the calendar year 2019, nonfarm jobs averaged a 100-job monthly decline. In 2018, jobs declined in only four of the 12 months; in 2019, they increased in only four of the 12 months.

The year was the first since 2009 with a net drop in payroll or nonfarm jobs. Jobs dropped by 15,600 in 2008 and 47,800 in 2009. For calendar 2019, Iowa lost 1,300 jobs.

From January 2019 to January 2020, the “other services” category led gains at 2,200, followed by leisure and hospitality at 1,800 and government at 1,300. Trade and transportation led declines at 4,800, followed by professional and business services at 2,500, manufacturing at 1,300, information at 1,100, and education and health services, also 1,100.

The Iowa Policy Project (IPP) is a nonpartisan, nonprofit public policy research and analysis organization based in Iowa City. IPP has been tracking Iowa job trends since its founding in 2001 and has regularly provided reflections on official monthly job reports since 2003.


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Author: iowapolicypoints

Iowa Policy Points is a blog of Common Good Iowa, a new organization built on a collective 50 years of experience of two respected Iowa organizations — the Child and Family Policy Center and the Iowa Policy Project. Learn more at

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