Iowa Job Report: Lowest unemployment in the state

CEDAR RAPIDS, Iowa (KCRG) – Iowa's job market is beginning to feel the effects of layoffs and an aging workforce.

The state's unemployment rate remained stable at 2.8% in July, well below the national average of 4.3%.

Iowa's economy lost 1,500 jobs in July when a Tyson Foods plant in Perry closed and layoffs at Deere took effect. But the state also experienced an even steeper decline in employment, losing 21,000 workers last year. That's largely due to older workers retiring, according to Iowa Workforce Development.

Joshua Rosenbloom, chairman of Iowa State University's economics department, says layoffs could accelerate some of these retirements.

With fewer workers available, companies looking to expand in Iowa may think twice about finding enough people. Rosenbloom says the labor market is difficult to predict because unemployment numbers can fluctuate greatly over time. Seasonal hiring changes the unemployment rate because of the temporary nature of the positions.

Iowa's economy still added 19,000 jobs compared to last year, but that could change as more layoffs at Deere take effect.

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