Current Labor Market
Conditions
There was much optimism about Iowa’s economic future as
the state moved into the 21st century. The decade of
the 1990’s ended on a wave of prosperity that had been sustained
for six years, and several of the labor force measures reflected
this prosperity. Total employment climbed to a peak level of 1,534,100
in 1999, nonfarm employment was at an all-time high of 1,466,700
jobs, and the statewide unemployment rate dipped to 2.5 percent.
This was the lowest unemployment rate reported in Iowa in 25 years
and also the lowest jobless rate in the nation. The comparable
U.S. unemployment rate for 1999 was 4.2 percent.
The economic climate has been so favorable in the state that
finding an adequate supply of labor has become a challenge for
many businesses. These shortages are widespread, and have affected
most of Iowa’s cities and industries. In certain areas of
the state, tight labor supplies have even impeded further expansion.
These labor constraints are reflected in the state’s labor
force figures for the last few years. In 1996 the statewide labor
force peaked at 1,593,100, but remained well below that level
for the next three years. In an effort to find additional workers,
employers have begun to target previously underutilized sources
of labor. These groups consist of the disabled, early retirees,
immigrants, minorities and welfare recipients.
The labor force growth that occurred in the 1970’s and
1980’s was primarily fueled by a large influx of females
and baby boomers. Demographics show us that the numbers of females
and youth currently entering the Iowa labor force are smaller
in size than in the past. Also, the trend toward early retirement,
low unemployment, out-migration and increasing skill demands have
all been factors in shrinking the current supply of labor.
Historical data on female labor force participation indicate
that no decade can compare to the 1970’s in terms of females
entering the labor force. Approximately 162,600 females entered
the labor force during this ten-year period, more than the combined
total for the next two decades. While the labor force participation
rate for males increased slowly from 77 percent in 1970 to 78.6
percent in 1998, the trend was quite different for females. The
labor force participation rate for females grew dramatically,
increasing from 40 percent in 1970 to 65.7 percent in 1998. The
fact that it took so many years to integrate females into the
labor force may be one of the reasons that a pay gap still exists
between the genders.
Gender
Wage Study
Labor
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