Iowa's economy is still soft. While nonfarm jobs dropped for the month, the trends over the last six months and the full year are encouraging. In addition, the state's unemployment rate at 6.8 percent in June remains significantly below the national rate of 9.5 percent, and held below the 23-year high of 6.9 percent in April.

IWD attributed a "large share" of the June nonfarm job loss to a reduction in temporary Census jobs. Iowa's job picture remains muddled by losses in the private sector — including 4,200 in trade, transportation and utilities in June alone. We must recognize that public-sector jobs are a critical lifeline for the economy when the private sector cannot deliver. This is not a time to cut back in public-sector jobs.

The continued softness in the Iowa economy also underscores issues faced by long-term unemployed workers in Iowa. If they cannot find new jobs, and if their unemployment benefits are cut off, this will not improve the Iowa job situation because those Iowans will not be able to help drive recovery.

The Iowa Policy Project (IPP) is a nonpartisan, nonprofit research and policy analysis organization based in Mount Vernon, with its principal office in Iowa City. IPP reports on job trends and other public policy issues facing Iowa are at www.iowapolicyproject.org.

Key Numbers
— Payroll (or nonfarm) jobs in June stood at 1,475,700, down 3,600 from the revised May figure of 1,479,300 but up 2,200 from the June 2009 level of 1,473,500.
— Iowa's unemployment rate held steady at 6.8 percent in June, but above the June 2009 rate of 6 percent.

Key Trends
— Nonfarm jobs dropped for the first time in six months, but have shown gains in seven of the last nine.
— For 2010, nonfarm jobs remain on their strongest pace in over a decade, at an average increase of 2,800 per month.
— Nonfarm jobs are above the year-ago level for the first time since September 2008.
— Private-sector soft spots over the year include Iowa's largest job sector — trade, transportation and utilities — which is down 9,400 for the year. Iowa's next five largest job sectors are all ahead of June 2009 job levels.