Des Moines wage growth stalls amid tariffs and Iowa job cuts
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Entry-level wages in the Des Moines metro increased by 3.4% annually from 2020 to 2025 — one of the lowest increases among 65 metros analyzed by Glassdoor.
Why it matters: Entry-level wage growth could hinder DSM's ability to attract and retain young professionals, who are crucial to fueling innovation and long-term economic momentum.
State of play: The slow pay growth is linked to the state's exposure to tariffs and years of mostly sluggish or declining international market sales, Iowa State University economist Peter Orazem tells Axios.
- Des Moines lost 0.6% of its total employment from August 2024 to August 2025, even as national employment grew by 0.8%, he noted, citing data from the U.S. Bureau of Labor Statistics.
- The losses were concentrated in the private sector, with the biggest declines in the relatively well-paying industries of manufacturing (-3.9%) and finance and insurance (-5.7%), Orazem said.
Stunning stat: Iowa lost 5,400 manufacturing jobs between July 2024 and this July, and nearly 11,000 since June 2023.
- A downturn in the agricultural economy is contributing to losses and sparking fears of a repeat of the 1980s Farm Crisis, the DSM Register reports.
What they're saying: Ben Ayers, senior economist at Nationwide, says U.S. Labor data shows continued economic stagnation in Iowa, driven by lower employment in the state.
- Though Iowa has low unemployment rates, there are about 2,000 fewer workers in the state now compared to two years ago, Ayers said during a Business Record panel last month.
- While that number isn't large, it indicates that business growth isn't occurring. He believes there aren't enough workers in Iowa, especially since the state's demographics lean older.
What we're watching: The U.S. Commerce Department's Bureau of Economic Analysis (BEA) is expected to release third-quarter GDP data by state next month.
- Iowa's GDP dropped 6.1% in the first quarter compared to the same period last year but showed a 3.7% increase in the second.