Iowa unemployment increase ranked third highest in nation

(The Center Square) – Iowa had the third greatest increase in unemployment from March 2022 to March 2023, WalletHub reported in a state-by-state ranking.

Still, it ranks just barely above average in terms of changes in unemployment rates compared with the rest of the nation, according to the report.

WalletHub compared all 50 states and the District of Columbia based on six metrics: overall unemployment rate in March 2023 and change in unemployment between March 2023 and five months of the past.

Iowa ranked 24th in the nation for overall unemployment rate change.

Its March 2023 unemployment rate was 2.8%, which was the same as Minnesota’s and Colorado’s. South Dakota, at 1.9%, had the lowest unemployment rate in March 2023, and Nevada had the highest: 5.5%.

The Hawkeye State’s unemployment rate last month was down 3.6% from its rate in February. District of Columbia had the greatest increase (4.1%) from February to March, while New Hampshire had the greatest decrease (8.9%).

It had the fourth greatest increase in unemployment from March 2020 to March 2023: 7.9%. Hawaii, Massachusetts and Oregon had increases of 58.8%, 27.6% and 24.1%, respectively. Nebraska had the greatest decrease; its unemployment rate was cut in half.

Iowa had the 11th biggest increase (7.9%) in unemployment from March 2019 to March 2023. Nevada had the biggest increase (35.1%), while Mississippi had the greatest decrease (35.7%).

Without adjusting continued claims based on season, Iowa had the fourth greatest decrease (12.5%) in March 2023 compared with February 2023. Missouri had the greatest decrease (18.1%), and Alabama had the greatest increase (77.2%).

Clemson University adjunct economics professor Miren Ivankovic said in the report that most countries the U.S. trades with are experiencing nearly double-digit inflation, and inflation is persisting domestically. Central banks are applying monetary policies to lower inflation and try to slow down the economy. He said a soft landing wouldn’t impact labor markets too much, but a hard landing could send the U.S. and other countries into a recession, with increased unemployment.

Ivankovic said he believes inflation is fairly stubborn in the U.S. and that the Federal Reserve will need to pursue a federal funds rate hike, which will affect firms’ investments, production, and sales.

“Thus, one can expect a labor contraction,” he said.

He said he anticipates industries that involve skilled labor will continue to do well, as many of those positions allow people to work from home. There will always be a demand for cooks, plumbers and solar power installers.

“Education is becoming a key to having a good career and it is a permanent process now,” he said. “Four years of college, for example, is just the beginning of the learning process. Most jobs now require some knowledge of computers and software, good time management skills, and good soft skills.”

Ivankovic said that as federal help decreases and people’s incomes decrease, firms can anticipate better labor force participation.