The State of Working Iowa 2008
Already Daunting, Challenges Mount for Working Iowa Families

Stagnation in Iowa jobs and a continued decline in job quality have combined with high gasoline and food prices, flooding and housing pressures to present daunting challenges for Iowa's working families. In our annual Labor Day review of the state's job climate, we observe:

  • The brunt of declines in the current business cycle are borne by younger and less-educated workers; for those with less than a high-school education, unemployment has not significantly eased from the 11 percent range it hit during the 2001 recession. Those people made up about 10 percent of the work force in 2007.
  • Job quality declined even as the job base recovered from the 2001 recession; three of the four job sectors where jobs declined from 2001-07 were also among the four top-paying job sectors.
  • Working Iowans have taken a double hit on job-based benefits. As job growth has drifted from high-wage sectors such as manufacturing, it also has drifted from sectors offering stable, job-based health-coverage.
  • Iowa remains a low-wage state, trailing the national average and ranking sixth in the nine-state region in median wage ($14.30 in 2007), with similar rankings at low-wage (20th percentile -- $9.28) and high-wage (80th percentile -- $22.76) measures. Low and median wages have fallen since 2001, with high wages showing little growth.
  • This report and other IPP work note many areas for policy improvements:

    • Iowa has not indexed the minimum wage for inflation. When Iowa, in two-step legislation passed in 2007, increased the minimum wage to $7.25, it put the state among the leaders in the nation and put the state minimum wage at a level that will not be reached by the U.S. minimum until July 2009. Nevertheless, it has already lost ground because of inflation, currently with a value, as SWI 2008 notes, of about $7.00.
    • While the Earned Income Tax Credit is now refundable, extending its reach to low-income families, it could provide more help if it were expanded.
    • Iowa's work supports - initiatives that help people stay in the labor force and support their families despite a lackluster job climate - need attention, particularly in child-care and health-care assistance. Supports are often necessary for both single-parent families and two-parent families where both parents work, especially as health-care coverage through employment has fallen and continues to erode, while health-care costs keep rising and private insurance is not always accessible.
    • Iowans need assurance that the state's economic development programs (including tax credits) do not subsidize jobs that fail to raise the bar on pay and benefits. Policy makers must assure accountability for tax-credit programs on the books.
    See The State of Working Iowa 2008:
    Full report (10 pages)
    News release
    See The State of Working Iowa 2008:
    See Women, Work and the Iowa Economy:
    Full report (11 pages)
    News release
    See The State of Working Iowa 2008:
    See Young Workers and the Iowa Economy:
    Full report (6 pages)
    News release
    The State of Working Iowa — Previous Issues
    See The State of Working Iowa:
    See The State of Working Iowa 2007
    Full report (25 pages)
    News release
    See The State of Working Iowa:
    See No Picnic: A Labor Day 2006 Update on The State of Working Iowa
    Full report (7 pages)
    News release
    See The State of Working Iowa:
    See The State of Working Iowa 2005
    Full report (30 pages)
    News release
    See The State of Working Iowa:
    See Working Blues: Labor Day in Iowa, 2004
    Full report (5 pages)
    News release
    See The State of Working Iowa:
    See The State of Working Iowa 2003
    Full report (63 pages)
    News release
    See The State of Working Iowa:
    See The State of Working Iowa 2001
    Full report (71 pages)
    Executive Summary