Iowa job market outlook: Stagnant wages, fewer remote work options

Why it matters: The shift marks a reversal from the worker-driven market that dominated the early 2020s, shaping everything from hiring practices to flexibility expectations.

Zoom in: Palmer Group is an Iowa-based staffing and consulting firm that annually releases a salary guide analyzing hiring trends across major industries in the state.

• It's developed in collaboration with regional and economic alliance groups, including the Greater Des Moines Partnership.

State of play: The market remains in "cautious limbo" as interest rates are expected to decline over time, per the study.

• Nearly half of employers plan to expand their workforce next year, while 4% expect to cut staff, which is almost the same as last year.
• The percentage of employers planning to give only 1–2% raises increased (from 14% to 21%), while those offering 3–4% raises decreased (from 78% to 71%).

Context: Inflation is projected to be around 2.6% next year, Reuters reports.

The intrigue: Over half (55%) of Iowa employers expect workers to be full-time in-office in 2026 — up from 38% in the 2025 study.

• Those offering hybrid work options decreased by 10 points, from 32% to 22%.

What we're watching: How slow wage growth in the metro area and recent job cuts linked to tariffs could affect regional economic momentum.