Iowa Unemployment Rate Unchanged at 3.5% in December

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(Iowa) -- Iowa’s unemployment rate held steady in December at 3.5 percent.

Beth Townsend, Director of Iowa Workforce Development, says winter weather plays a major role in seasonal job losses.

“In Iowa, we always see the largest seasonal layoffs in December, January, and February because of the weather. This is the time of year when we see the most people not working because they simply can’t,” Townsend said.

The retail sector saw the largest job losses during the month, shedding about 1,500 positions. Manufacturing followed, with a loss of roughly 1,300 jobs.

Meanwhile, construction added the most jobs overall, gaining around 7,000 positions in 2025. Education and healthcare also saw growth, with each sector adding approximately 6,000 jobs.


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