Iowa construction hires lead job growth in March, but unemployment rate stays flat

Iowa construction work geared up as temperatures rose in March, leading to an increase in the state's overall employment for the month.

The state reported about 1.5 million employed workers in March, up by 15,000 from February, according to U.S. Bureau of Labor Statistics data released Friday. Since mass layoffs at the start of the coronavirus pandemic last spring, Iowa has reported increases in employment in 10 of 12 months.

Iowa's unemployment rate, however, remained unchanged in March at 3.7%, the same as for February. Iowa and Kansas are tied for the seventh-lowest unemployment rate among U.S. states. Iowa neighbors Nebraska and South Dakota are in a tie with Vermont and Utah for the lowest rate, at 2.9% — which was Iowa's unemployment rate in February 2020.

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The construction sector accounted for the greatest increase in Iowa employment from February to March, adding about 7,500 jobs. That represents a bounce back from February, when about 6,000 construction workers lost jobs amid an extended string of subzero temperatures.

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No other sector saw big hiring in March. Durable goods manufacturing added 1,800 jobs, and administration and support added 1,500 jobs.

About 65,000 fewer Iowans had jobs in March than in February 2020, the last full month before the COVID-19 pandemic forced mass business closures. Workers in the accommodation and food services sector remain the most affected, followed by employees in health services, local government and durable goods manufacturing.

Despite the added jobs in March, Iowa's unemployment rate remained stable because of a change in how the federal government calculates the rate. While employment increased, the size of the labor force — defined as all of the people who have jobs or are looking for work — also increased.

Iowa's economic improvement mirrored that of the country as a whole, as the nation's nonfarm businesses added 916,000 employees from February to March. The national unemployment rate decreased to 6% from 6.2% during that time.

Tyler Jett covers jobs and the economy for the Des Moines Register. Reach him at tjett@registermedia.com, 515-284-8215, or on Twitter at @LetsJett.