WASHINGTON: Iowa’s long-envied unemployment rate increased in February for the first time in seven years, echoing other signs of a weakening state economy. The state’s February rate of 3.7 percent was two-tenths of a percent higher than in January, according to figures released Friday by Iowa Workforce Development.
That’s a marked departure in a state where unemployment has held steady or decreased every month since May 2009, when the jobless rate was 6.6 percent. The number of unemployed Iowans rose to 63,000 in February, from 60,200 in January. Still, the number of working Iowans increased to 1,651,100 in February, 1,900 more than in January 2016 and 13,700 higher than one year ago.
February’s changing tide is concerning, though not surprising, to Iowa economy watchers, who for months have noticed signs of a weakening statewide economy. Many of Iowa’s economic troubles are traced to agriculture and ag-connected industries weakened from low commodity prices.
“I was not surprised by the increase in February, given the number of large layoffs we’ve seen throughout the state in the past few months,” said Iowa Workforce Development Director Beth Townsend. “I frankly have been surprised that the rate hadn’t increased in January, possibly December, given what we have seen from layoffs.
