Iowa job growth lags the national trend
Add Axios as your preferred source to
see more of our stories on Google.
Iowa's job growth continues to be slower than the rest of the country's at .7% year over year, the latest September labor report from Iowa Workforce Development shows.
Why it matters: The data shows underlying weaknesses in our labor market.
The big picture: The nation has experienced a job growth slowdown in response to a softening economy and businesses' expectations of declining sales.
- But Iowa's "tepid" job growth is among the worst in the country (42nd) and reflects a larger issue that's long plagued the state — a lack of workers — says Ben Ayers, a senior economist with Nationwide.
⬇️ By the numbers: Iowa lost nearly 5,000 jobs in September across several sectors.
- Despite the decline, the unemployment rate remained steady at 2.9% — signaling there are fewer people willing to work in the state, Ayers says.
- Meanwhile, U.S. unemployment ticked down to 4.1% in September amidst a big gain of 254,000 jobs.
💵 Wages increased in Iowa 4.5% year over year, above the national average. The increase indicates employers are still struggling to find help and are trying to entice workers.
- That's good for workers, but it could lead to long-term problems if employers get worried about cutting costs, Ayers says.
🔪 Between the lines: Federal rate cuts won't help our slow job growth, Ayers says. Our problem existed long before pandemic-induced economic struggles.
- Iowa's demographics lean older than the rest of the country, and many of those people left the workforce in 2020 and 2021. Meanwhile, younger people aren't coming into the state to help fill the gap.
What they're saying: A lack of workers might not prompt employers to shut down their Iowa businesses, Ayers says, but it certainly doesn't entice them to expand, either.
- "Maybe some employers in the state decide, 'Maybe this isn't where I want to be because I can't find the workers; I have to pay them more if I do want to bring them over — maybe I need to go somewhere else,'" he says.
💭 Our thought bubble: One solution could be to entice remote workers to Iowa with the state's lower housing prices, though there hasn't been any evidence that's worked.
- If anything, remote work could be prompting more people to leave for warmer climates and more recreation.
- However, improving immigration reform and labor laws could help attract people from other countries to work here and help backfill Iowa's aging workforce.