The short answer to this question is: yes.
Unemployment benefits are reported to the recipient on a Form 1099-G, and the benefits are taxable.
There was a year or two, several years ago, where the federal government allowed people to exclude a certain amount of unemployment benefits from taxation, but that provision expired.
In Iowa, unemployment benefits are also taxable unless the benefits are received are paid by the Railroad Retirement Board. All other unemployment benefits are fully taxable in Iowa.