Employers in Iowa continued to shed jobs in June, extending a trend that’s seen 6,800 jobs lost in the past 12 months, newly released data from Iowa Workforce Development shows.

In June, Iowa businesses cut 2,700 jobs, lowering the state’s total nonfarm employment to 1,590,700, state data shows. In May, 5,100 jobs were lost.

“Without any momentum for the labor market, growth across the state has slowed with an added drag from reduced net farm incomes,” Nationwide senior economist Ben Ayers wrote about Iowa’s June jobs report. “Continued trade uncertainty and expected softer consumer spending in the second half of the year could continue to weigh on Iowa GDP growth.”

Sectors that lost jobs in June include:

• Leisure and hospitality, down 5,200 jobs to 136,600. In June 2024, 143,300 people were employed in the sector.
• Arts, entertainment and recreation, down 2,800 jobs to 18,300. In June 2024, 21,800 people were employed in the sector.
• Accommodation and food services, down 2,400 jobs to 118,300. In June 2024, the sector employed 121,500 people.
• Manufacturing, down 800 jobs to 215,600. In June 2024, 224,700 people were employed in the sector, a drop of 9,100 jobs.

Ayers wrote that the jobs outlook for 2026 may be brighter because of “additional stimulus from the federal government as well as more clarity on policy changes. But the road to 2026 will continue to be challenged in the near term.”

Iowa’s June job’s report included one bright spot: The state’s labor force participation rate moved to 67.4% with the addition of 3,900 people entering the job market. In May, Iowa’s labor force participation rate was 67.3%.

“Lack of available workers has inhibited hiring for several years and the recent increases in the labor force could help some Iowa firms to fill longstanding job openings,” Ayers wrote. “Still, the upside for job growth in the second half of 2025 remains limited by growth concerns and broader economic uncertainty.”

Iowa’s unemployment rate in June was 3.7%, up from 3.6% in May. The U.S. unemployment rate was 4.1% in June.

To read the entire report, click here.