Iowa’s August unemployment rate increased to 5.5 percent from 5.3 percent in July, according to figures fromm Iowa Workforce Development. However, the rate is lower than 6 percent a year ago. 

“Seasonal job losses and an uncertain economic outlook are currently restraining job growth,” said Teresa Wahlert, director of Iowa Workforce Development. “The statewide economy is reacting to the effects of drought conditions, a global economic slowdown and the national uncertainty surrounding taxes and expenditure cuts.”

The number of unemployed Iowans moved up from 87,900 in July to 90,000 in August. Seasonal job losses hurt August job growth. The leisure and hospitality industry lost 2,100 jobs. The construction industry shed 1,700 jobs, marking the fourth consecutive month of industry loses.  

Manufacturing was down 900 jobs in August with losses reflected in both durable and nondurable goods. The sector has led the economic recovery, but has suffered its third job loss in the last four months.

Meanwhile, August job gains were concentrated in the service-related sectors. Government posted a gain of 3,400 jobs, with most of the increase in local government. Trade and transportation added 600 new jobs and finance was up 500.