Corridor Sees Job Decline in July

By Dave DeWitte, Reporter

Employment Kiosks set up in the North Liberty Library are among the first virtual unemployment offices to be set up to help communities go back to work, Tuesday, August 30, 2011. (Kenny Knutson/SourceMedia Group News)

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By Kara Kelly

CEDAR RAPIDS, Iowa -- Summer reductions in education employment placed downward pressure on nonfarm employment in the Corridor last month, although unemployment rates held steady.

Iowa Workforce Development reported Tuesday that the unemployment rate held steady at 5.3 percent in July in the Cedar Rapids Metropolitan Statistical Area and increased to 4.2 percent in the Iowa City MSA from June's 4.1 percent.

Nonfarm employment in the Cedar Rapids MSA slipped by 1,200, and remained 2,000 below July 2011. The biggest downward pressure in July came from local government, which lost 900 jobs due mainly to summer cutbacks in education employment.

The closely watched manufacturing sector gained 200 jobs from June, but remains 900 below July 2011 levels.

Nonfarm employment in the Iowa City MSA declined by 2,200 from June, and stood 500 above year-ago levels. The biggest downward pressure on employment also came from summer education cutbacks, with a 2,300 reduction in state government jobs and a 1,000 reduction in local government jobs from June levels.

Nonfarm employment in the Dubuque MSA added 900 jobs from June levels, while nonfarm employment in the Waterloo MSA added 200 from June.

Iowa's statewide seasonally adjusted unemployment rate, already reported last week, rose to 5.3 percent in July from June's 5.1 percent level.

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