Metro Job Market Pulse · General Market Conditions · October 2026
General Market Conditions Labor Market Report: Iowa City, IA MSA — October 2026
Iowa City labor force stalls even as population climbs
Johnson County's labor force shrank from 103,900 in February to 101,800 by May even as Iowa City led the state in population growth, while metro wage growth of 2.7% continues to trail inflation.
Free archive edition. Published by WageScape as sent to subscribers; data as of October 2026.
Key indicators
- Johnson County unemployment: 3.0% — vs. 4.2% national, Aug. 2026
- Metro labor force swing: 103.9K to 101.8K — Feb. to May 2026, partial June rebound
- Johnson County wage growth: 2.7% YoY — Q3 2025, below 3.5%+ CPI gains
- Metro population growth rank: 0.9% annualized — Fastest among Iowa metros, June 2025-26
Key takeaways
Iowa City's labor force is treading water despite population growth.
The civilian labor force dipped from 103,900 in February to 101,800 by May before a partial June recovery, even as the metro led Iowa in population growth. Workforce participation appears disconnected from population gains, a pattern state data attributes partly to retirements and demographic shifts in the 45-54 age band.
Pay gains are clustering in tech and finance, concentrated in specific sectors metro-wide.
Software Engineer ($167,000, up significantly), Financial Analyst ($82,956, up significantly) and Business Analyst ($90,427, up significantly) posted some of the sharpest local gains, while Electrician pay fell significantly and Administrative Assistant pay dropped to $38,756. Concentrated gains alongside falling pay in skilled trades and office support point to uneven sector momentum in an unevenly tight market.
Construction pay is outrunning the national trend.
Construction Laborer pay in the metro rose to $47,840, a significant increase and well above the $40,727 national median, consistent with Iowa's statewide construction employment reaching an all-time high. Commerce leaders tracking building-sector capacity should weigh this against regional cost comparisons before finalizing project timelines.
Metro wage growth is lagging the state's already modest pace.
Johnson County wages rose 2.7% year-over-year as of Q3 2025, below Iowa's own wage growth ranking (22nd nationally) and further behind the 3.5%-3.7% CPI gains cited in national data. Real purchasing power in the metro appears to be eroding at a pace consistent with — or slightly worse than — the national pattern.
Median advertised pay by role — Iowa City, IA MSA
| Role | 25th percentile | Median advertised pay | 75th percentile | Metro trend | National median |
|---|---|---|---|---|---|
| Retail Sales Associate | $24,960 | $30,741 | $34,195 | Moderate increase | $33,340 |
| Retail Cashier | $27,040 | $30,520 | $32,000 | Stable | $31,268 |
| Warehouse/Fulfillment Associate | $32,137 | $36,400 | $38,480 | Stable | $38,480 |
| CDL Truck Driver | $57,200 | $76,415 | $85,800 | Stable | $78,872 |
| Delivery Driver | $30,406 | $34,633 | $44,200 | Stable | $34,826 |
| Construction Laborer | $37,440 | $47,840 | $49,795 | Significant increase | $40,727 |
| Electrician | $55,120 | $69,387 | $75,920 | Significant decline | $71,835 |
| Manufacturing Production Worker/Assembler | $31,188 | $34,784 | $35,158 | Moderate decline | $39,520 |
| Customer Service Representative | $31,980 | $35,600 | $37,020 | Moderate increase | $39,520 |
| Food Service Worker | $28,375 | $30,875 | $36,733 | Moderate decline | $33,764 |
| Certified Nursing Assistant / Home Health Aide | $35,531 | $39,741 | $44,616 | Stable | $41,600 |
| Administrative Assistant/Office Clerk | $34,320 | $38,756 | $41,600 | Significant decline | $44,552 |
| HVAC Technician | $57,200 | $75,088 | $79,040 | Moderate increase | $71,406 |
| Registered Nurse | $87,544 | $110,227 | $118,489 | Moderate increase | $102,252 |
| Software Engineer | $123,989 | $167,000 | $170,000 | Significant increase | $154,403 |
| Data Engineer | $90,091 | $108,415 | $112,958 | Significant decline | $138,000 |
| Accountant | $53,442 | $59,466 | $63,044 | Stable | $72,000 |
| Financial Analyst | $66,888 | $82,956 | $89,472 | Significant increase | $94,646 |
| HR Generalist/Manager | $38,757 | $72,163 | $76,397 | Significant increase | $74,477 |
| Marketing Specialist * | $48,975 | $67,351 | $77,816 | Significant increase | $62,916 |
| Operations Manager * | $64,060 | $94,434 | $101,503 | Moderate increase | $86,294 |
| Elementary/Secondary School Teacher | $30,806 | $40,348 | $50,000 | Moderate decline | $55,908 |
| Account Manager | $75,035 | $90,000 | $97,000 | Moderate increase | $94,009 |
| Warehouse Manager * | $60,000 | $60,000 | $60,000 | Stable | $75,000 |
| Business Analyst | $86,903 | $90,427 | $102,560 | Significant increase | $98,302 |
* State-level figure shown where metro postings were too few.
WageScape's median is calibrated to correct for spurious low-value postings (reported as the 60th percentile of raw advertised pay). Download: CSV · JSON
Industry snapshot
| Sector | Median advertised pay | Pay trend | Postings trend |
|---|---|---|---|
| Construction | $65,417 | Moderate increase | Significant increase |
| Manufacturing | $64,611 | Moderate increase | Significant increase |
| Retail Trade | $36,709 | Moderate increase | Significant increase |
| Transportation, Warehousing & Utilities | $61,755 | Stable | Significant increase |
| Information | $57,280 | Significant increase | Significant increase |
| Financial Activities | $44,720 | Significant decline | Significant increase |
| Professional & Business Services | $45,009 | Significant decline | Significant increase |
| Education & Health Services | $43,680 | Stable | Significant increase |
| Leisure & Hospitality | $32,392 | Moderate decline | Significant increase |
| Government | $64,893 | Moderate increase | Significant increase |
Local market conditions
Johnson County's unemployment rate held near 3.0% in August, well below the national 4.2% rate, while the metro's civilian labor force has oscillated between roughly 101,800 and 103,900 since January — a pattern consistent with workforce churn. Iowa City posted the fastest population growth among state metros over the year to June (0.9% annualized), yet Johnson County wages rose just 2.7% year-over-year in Q3 2025, trailing both national inflation and the state's healthcare and construction gains.
What it means
Advertised pay data show a divided metro economy: Software Engineer pay climbed to a $167,000 median (up significantly, well above the $154,403 national figure), while Data Engineer pay fell sharply to $108,415, and Electrician and Administrative Assistant pay also declined significantly — a sign that gains are concentrated in specific sectors. For commerce leaders assessing the local business climate, this divergence suggests expansion plans should account for uneven pay pressure across sectors; current conditions suggest reviewing sector-specific pay movement before benchmarking expansion costs against statewide or national averages.
Looking ahead
Early indicator: July-September BLS metro nonfarm employment figures, delayed by the standard reporting lag, are due for release in the coming weeks and will show whether the labor force volatility seen through May-June persisted into late summer.
Emerging pressure point: Statewide labor force participation fell to 66.9% in September from 67.8% a year earlier, concentrated among workers aged 45-54. Watch whether Johnson County's participation follows the same trajectory, given its role as the state's fastest-growing metro by population.
Worth watching: Wells Fargo's 86-layoff notice at its West Des Moines campus and a cumulative 460 Iowa job losses this year warrant monitoring for any ripple effect into Iowa City's financial-services advertised pay, where Financial Analyst and Accountant roles have shown divergent trends.
Potential inflection point: Healthcare and construction reached record statewide employment levels in September; whether Iowa City's own healthcare sector — anchored by the University of Iowa's hospital system — mirrors that statewide strength will be a key test of local economic resilience heading into year-end.
Sources
- U.S. Bureau of Labor Statistics / Iowa Workforce Development — Johnson County unemployment rate near 3.0% in August 2026
- U.S. Bureau of Labor Statistics — Iowa City MSA civilian labor force trend January-June 2026
- U.S. Census Bureau / BLS regional data — Iowa City fastest-growing Iowa metro at 0.9% annualized
- U.S. Bureau of Labor Statistics — Johnson County wages rose 2.7% year-over-year in Q3 2025
- Iowa Workforce Development — Iowa labor force participation fell to 66.9% in September
- Rolling Out — Wells Fargo West Des Moines layoff notice, 86 workers
Methodology
Advertised pay from active employer job postings, not survey data. WageScape's median is calibrated to correct for spurious low-value postings: distribution analysis shows roughly the lowest 10% of raw values are erroneous entries, so the reported median is the 60th percentile of raw advertised pay. WageScape observes 98% of U.S. job openings daily.
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