DES MOINES — The state’s unemployment rate rose two-tenths of a percent in the month of August.

Iowa Workforce Development says Iowa’s seasonally adjusted unemployment rate rose from 2.7% to 2.9% in August, tying the year-ago rate, while the U.S. unemployment rate increased from 3.5% to 3.8% in August.

Despite the unemployment rate rise, Iowa gained 2400 jobs and Iowa’s workforce grew by 500 people in August.

The number of unemployed Iowans increased to 50,200 in August from 47,700 in July. The state’s overall labor force participation rate decreased slightly from 68.8 to 68.7% in August.

Leisure and hospitality led all sectors in jobs gained in August with 2600, followed by education and healthcare with 2400.

Trade and transportation shed 2200 jobs to lead all sectors, with wholesale trade fueling most of the losses with 1600 jobs.