An unemployment rate measures the percent of individuals actively looking for work, who are unable to find a job. At the end of January, the state of Iowa’s unemployment rate dropped to 3.5%. Linn County sits slightly higher at 5.2%. Exactly one year prior, the state and county unemployment rate was 3.7%. Through a year-long pandemic, our state has already recovered to unemployment numbers before COVID hit Iowa.
Unemployment only tells half the story. Today, our regional labor force is down by 20,000 individuals. The state’s labor participation rate is down 6% from one year ago. This artificially reduces our unemployment rate because less people are even trying to find a job.
As businesses continue to recover and grow, we must identify, address, and combat the barriers that have caused individuals to exit the workforce altogether. For some, it’s access to childcare. Others may be caring for an elderly parent or deciding to teach their children this year from home. It’s all about workforce. A full economic recovery will rely on engaging more individuals to reenter our labor force and fill the growing number of jobs available in our community.