Iowa Maintains Low Unemployment While Illinois Jobs Decline

Midwestern labor markets showed diverging trends in August, with Iowa Workforce Development reporting a steady unemployment rate of 3.2 percent for the fourth consecutive month. Iowa added 2,400 jobs, bringing total nonfarm employment to 1,585,800. This growth was led by the manufacturing sector, which added 1,300 positions, alongside gains in healthcare and leisure and hospitality. Although the total number of working Iowans decreased by 2,600 from July, officials attributed the decline primarily to retirements. Low unemployment claims have left the state with a $2.1 billion trust fund balance, allowing for the lowest possible employer tax rates in 2027.

In contrast, the Government of Illinois reported a drop in total nonfarm payroll jobs of 4,400, bringing the total to 6,175,600. While the state's unemployment rate fell to 4.7 percent, significant losses occurred in private education, health services, and financial activities. Illinois added 15,000 jobs over the past year, but its annual growth of 0.2 percent remains below the national average of 0.4 percent.

Deputy Governor Andy Manar attributed the slump in Illinois to inconsistent federal trade policies that created uncertainty for local businesses. In response, state leaders plan to prioritize targeted investments and workforce training to mitigate supply chain and trade headwinds.