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Iowa unemployment rate drops again

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Iowa’s unemployment rate dropped for the second consecutive month to 3.5 percent in February. The jobless rate was 3.6 percent in the previous month and 3.7 percent in February 2007.

Meanwhile, the number of working Iowans decreased to 1,611,000 last month from 1,612,800 in January. The current employment estimate is still 15,100 higher than the level reported in February 2007. Nonfarm employment dropped slightly, with 200 fewer jobs than the previous month; it was still up 10,400 jobs from February 2007.

“Unemployment remained at a relatively low level in February despite slower job growth for the month,” said Elisabeth Buck, director of Iowa Workforce Development, in a press release. “While Iowa’s economy remains on solid footing compared to the nation, the housing slowdown continues to have a negative effect on the state’s construction industry.”

The construction sector lost 900 jobs in February, while retail trade lost 600 and leisure and hospitality dropped 300. Health services had the biggest increase of 600 jobs, manufacturing and finance gained 300 jobs each and the government sector added 200 jobs.