Iowa's job numbers in July emphasize the critical role of public-sector jobs in the state's economy. These jobs — which declined in July — provide services that private-sector employers do not typically deliver even in good times, and that are essential to Iowa families struggling in difficult economic times. Proposals that would cut more public-sector jobs will not help the economy, but are more likely to severely dampen the pace of recovery.

Overall in July, nonfarm jobs showed slight improvement, despite the unemployment rate being at a still historically high 6.8 percent. More important than the July numbers are the longer-term trends, which show gains in nine of the last 12 months and a small increase from where jobs stood a year earlier. Iowa still has a long way to go to catch up to peak or better job numbers that we saw two or three years ago.

A sharp revision in data paints a worse picture for June than previously thought, which is one reason it is most important with these monthly numbers to examine the longer-term trends than to place too much emphasis on the one-month change.

Those trends indicate:
— The state's job picture has been hurt by jobs lost in the public sector; both state and federal jobs have declined in Iowa. Government jobs dropped by 1,300 in the month and were 3,500 below July 2009. Iowa Workforce Development attributes the July 2010 declines to early retirements in state government and the end of temporary federal Census jobs.
— Two months of big drops — December 2009 (12,100 jobs) and June 2010 (6,100 jobs) — mean Iowa's nonfarm jobs overall have only held about steady over the last 12 months -- an average increase of 300 per month.

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 July stood at 1,474,900, up 1,700 from the revised June figure of 1,473,200 and up 3,700 from the July 2009 level of 1,471,200.
— Iowa's unemployment rate was 6.8 percent in July, above a downwardly revised 6.7 percent in June, and also above the July 2009 rate of 6.1 percent.

Key Trends
— Nonfarm jobs have shown gains in nine of the last 12 months, but two of the three declines swallowed a large share of the gains.
— For 2010, nonfarm jobs remain on their best pace since 1998, at an average increase of 2,300 per month.
— Nonfarm jobs are above the year-ago level for the first time since September 2008. (Note: June numbers had previously been thought to surpass the year-ago level, but revisions dropped those estimates.)
— Iowa's largest job sector — trade, transportation and utilities — is down 6,900 jobs over 12 months, followed by a 3,500 decline in government jobs. Top-gaining categories from July 2009 are professional and business services (8,100), and manufacturing (7,200).