Hiring across Iowa remained sluggish in March, with most industries at a standstill with employers holding off on adding workers because of higher energy costs and uncertainty tied to the Iranian conflict.

“The recent spike in energy costs … could limit hiring in the near-term until the supply shock abates,” Ben Ayers, senior economist for Nationwide, wrote in an analysis of Iowa’s March employment report. “We expect soft hiring to continue into the summer, a trend which could extend into the fall if the conflict goes longer.”

In March, Iowa employers shed 500 jobs from their payrolls, lowering total nonfarm employment to 1,575,800, new data from Iowa Workforce Development shows. In the past year, Iowa Iowa’s total nonfarm employment has shrunk by 20,700 workers, state data shows.

Sectors that added jobs include health care and social assistance (up 1,100 workers in March) and retail trade (up 400 workers). Sectors that lost jobs include professional and business services (down 800 jobs), financial activities (down 600 jobs) and manufacturing (down 300 jobs).

“Higher operating costs and the spike in uncertainty due to the Iranian conflict have many employers in a wait-and-see mode regarding staffing,” Ayers wrote. “Fortunately, there is little sign of widespread layoffs so a low hire, low fire environment should linger across the state.”

Iowa’s unemployment rate in March was 3.3%, slightly less than the 3.4% rate recorded in February, January and December. Unemployment rate by city ranged from 2.4% in Iowa City to 8.6% in Marshalltown, state data shows. Unemployment rate by county ranged from 2.1% in Taylor County to 7% in Marshall County.

Iowa’s labor force participation rate in March was 67.7%, down slightly from February’s rate of 67.8%. 

The U.S. unemployment rate in February was 4.3%.

The full March jobs report release is available online. 

View an interactive map that shows unemployment rates by Iowa community. 

View an Excel workbook that shows unemployment rates by Iowa county and community with spreadsheets for each month between January 2025 and March 2026.