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Iowa could see unemployment increase from Fed’s inflation-fighting

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Iowa could see unemployment increase from Fed’s inflation-fighting


Iowa’s unemployment charge could rise by 2023, although it’s unclear by how a lot, because the Federal Reserve makes an attempt to chill the financial system and pull the brakes on record-high inflation.

Iowa’s unemployment charge sits at 2.6%, the speed it was earlier than the pandemic. Most companies are having issue discovering employees to fill open positions, stated Joe Murphy government director of the Iowa Enterprise Council, which represents among the state’s largest employers.

Iowa has round 84,000 open jobs and round 44,700 folks unemployed, in line with Iowa Workforce Growth. Murphy stated companies are working to recruit employees exterior Iowa and hoping some individuals who left the workforce in recent times return.

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However the labor market in Iowa may change, because the Fed predicts the nationwide unemployment charge will rise from 3.7% to 4.4% by the tip of subsequent yr, a consequence of its aggressive rate of interest will increase hoping to curb inflation.

Persons are additionally studying…

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In August, Iowa’s unemployment charge ticked up by 0.1% to 2.6%. An extra 1,300 Iowans left the workforce, with the most important purpose being a want to attend college, in line with Iowa Workforce Growth.

The Fed raised the goal federal funds rate of interest by one other 0.75 proportion factors final week, and charges are anticipated to rise extra all year long. The benchmark charge impacts rates of interest on bank cards, mortgages, and different kinds of loans.

Greater rates of interest improve the price of doing enterprise, which results in a slowdown in all facets of enterprise, together with hiring and typically resulting in layoffs. That’s a part of the objective: In remarks final week, Fed Chair Jerome Powell stated the speed improve will result in a “softening of the labor market” which is meant to carry demand in keeping with provide, placing a damper on inflation.

John Winters, an economist at Iowa State College, stated the extent to which unemployment will increase relies on the severity of the Fed’s rate of interest will increase.

“If it’s exhausting to scale back inflation they usually maintain having to boost increasingly more, greater than they at the moment count on, then that can result in extra job losses, probably, than they count on,” he stated.

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Iowa bucks nationwide traits

Murphy stated Iowa will most likely see “just a little little bit of an uptick” in unemployment, however the state and companies are effectively located to face up to the worst results of a possible recession.

“We predict we might be hopefully insulated sufficient from a few of these [national] and even worldwide occasions which might be inflicting financial headwinds to blow our approach,” he stated. “We’ll actually be impacted, however to what stage, I believe, is the final word query.”

Murphy and different consultants pointed to Iowa’s resilience throughout different nationwide recessions, together with the 2008-2009 recession. Throughout that point, the nationwide unemployment charge peaked at 10% in October of 2009. Iowa’s charge stayed under nationwide charges over these two years and peaked at 6.6% between Could and August of 2009.

Iowa’s unemployment charge reached 10.5% in April 2020, the worst month of the early pandemic-fueled layoffs, whereas the nationwide charge shot as much as 14.7%.

“Popping out of the monetary crises in 2008-2009 Iowa had an unemployment charge decrease than 40 different states and effectively under the nationwide stage,” Iowa Affiliation of Companies Vice President for Public Coverage JD Davis stated in an electronic mail. “That is due partly to the efforts of coverage makers in Iowa to diversify our financial system and insulate Iowans from financial downturns.”

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Lending industries hit first

Jeff Eckhoff, a spokesperson for Iowa Workforce Growth, stated in an electronic mail the division is paying shut consideration to rates of interest’ impact on employment, particularly in industries that lend or rely upon lending. Winters stated banking, actual property and development might be potential areas of contraction.

The credit score trade has already been impacted as demand decreases or corporations count on demand to lower, Eckhoff stated.

Mortgages are one space the place the speed will increase are being felt starkly: As rates of interest on mortgages attain a 30-year excessive, demand nationally dropped 29% since final yr, in line with CNBC.

“There’s much less mortgage loans, but additionally different loans,” Winters stated. “Take into consideration companies. Some companies if they will borrow at 3.5% possibly they do it, in the event that they’ve obtained to borrow at 6.5% possibly they don’t.”

Wells Fargo has reduce practically 400 jobs because the starting of this yr, with many within the dwelling lending sector, in line with stories. The monetary providers firm stated in a press release to KCCI earlier this yr the layoffs in its dwelling mortgage sector had been the results of pure adjustments to the house lending setting.

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“We recurrently evaluate and alter staffing ranges to align with market circumstances and the wants of our companies,” Wells Fargo spokesperson Mike Slusark stated in a press release. “We work exhausting to determine alternatives for workers in different elements of the corporate so we are able to retain as many staff as doable.”

Reemployment course of

Below a brand new Iowa legislation handed this yr by the Republican-led Legislature, Iowans who’re eligible for unemployment advantages can solely obtain them for 16 weeks, down from the earlier 26 weeks.

Gov. Kim Reynolds stated the change would assist bolster Iowa’s workforce and fill the 1000’s of open jobs within the state. Democrats stated the legislation was unhealthy for employees and harm unemployed Iowans.

Iowa Workforce Growth ramped up its efforts to match unemployed Iowans with open jobs this yr, Eckhoff stated, by its Reemployment Case Administration system. The company reaches out to new jobless claimants throughout the first week and requires conferences with profession advisors. The company additionally connects Iowans with apprenticeship and coaching applications and apprenticeships.

For employers, Iowa Workforce Growth provides a program that enables employers to unfold hour discount amongst a number of staff, and the workers can use unemployment insurance coverage to make up a few of these misplaced wages.

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“When layoffs are vital, IWD makes use of a fast response crew to assist streamline the unemployment course of as a lot as doable for departing employees.”

As Iowa companies and employees look to the longer term, the prevailing theme is uncertainty in regards to the financial system and labor market. Charlie Wishman, president of the Iowa Federation of Labor, stated the financial traits of the final two years haven’t been in keeping with expectations.

“I believe if something we’ve got discovered within the final two years, and particularly in the case of issues just like the financial system, the availability chains, you may go on and on, is to count on the sudden,” he stated. “It’s actually tough to foretell what’s going to occur on unemployment, on wages, on an entire host of issues.”

https://participant.captivate.fm/episode/9beee1a6-9b5a-43c2-9d5e-17f50541a655

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Iowa

Activists in Iowa City protest state-level immigration law

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Activists in Iowa City protest state-level immigration law


IOWA CITY, Iowa (KCRG) – Activists across Iowa protested a state immigration law that was set to take effect July 1.

The law would allow law enforcement to file criminal charges against people with outstanding deportation orders or who previously had been denied entry to the U.S.

The law is currently not in effect due to a court challenge.

Max Villatoro was one of the people at the Iowa City rally to oppose SF 2340 on Monday night. He was there even though, in a way, he said he has nothing to fear from this law. That’s because deportation, the worst thing he could imagine, is something he’s already been through.

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“They call [it] separation of family, but I will say it’s like destruction of family,” said Villatoro.

Villatoro was deported in 2015. He missed seven and a half years of his kids’ lives.

“When I came back, they’re already grown up, both of them.”

He is now in the U.S. legally, has a work permit, and is making progress toward being a permanent resident.

Critics of this new law worry that people like Villatoro— people who are here legally but who have been deported before—would be in danger of being removed from the country again.

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“It would put people at risk who have been deported or have previously been removed from the country, of being removed again,” said Yaneli Canales, Villatoro’s niece.

Critics also say the law would encourage racial profiling. Manny Galvez said he’s a citizen, but he believes that’s not what a police officer would assume.

“It’s going to be so scary, because what they’re going to see in my face—they’re going to see my face, my skin, [and] most likely, they’re going to think I don’t have a document,” said Galvez.

Finally, critics echoed the judge who put the law on pause by saying federal immigration law preempts anything on the state level.

“Iowa cannot deport people. This is a federal issue,” said Galvez.

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“We need to fix the immigration situation in this country. And the best [solution] is immigration reform,” he added.

TV9 reached out to Governor Kim Reynolds’ office to get a statement in response to this story. A representative shared the following:

“As the Attorney General’s office argued, the illegal re-entry legislation does not affect those who are in the country legally. The legislation makes it a state crime, just as it is federally, to re-enter Iowa if an individual has been denied admission or deported before, or left the country while under order of deportation. Every state is now a border state because of the Biden Administration’s open border policies.”



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Coalition sees future of Iowa agriculture in food diversity, not ethanol and animal feed • Iowa Capital Dispatch

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Coalition sees future of Iowa agriculture in food diversity, not ethanol and animal feed • Iowa Capital Dispatch


A new plan for Iowa agriculture seeks to increase the state’s production of food rather than ethanol and animal feed, the Iowa Food System Coalition announced at a Monday press conference.

The plan, known as Setting the Table for All Iowans, outlines the coalition’s policy goals which include producing more locally grown food, getting more young people to become farmers and providing more financial assistance to farmers.

Chris Schwartz, executive director of the coalition, said the plan is an opportunity to positively impact farmers, the economy and the local community.

“There’s room to grow and strengthen our agricultural tradition as well as our collective health and our economy,” Schwartz said at the press conference.

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Director of Grinnell Farm to Table food hub Tommy Hexter said many commodity farmers are struggling because most of the profits are going toward the middlemen like seed, equipment and marketing companies. 

However, Hexter said selling produce locally cuts out most middlemen and leads to more money going into farmers’ pockets.

“Setting the Table for All Iowans provides an opportunity to build that system where Iowa’s farmers and small business owners can truly thrive,” Hexter said in the press conference.

Iowa leads ethanol production

According to data from the Iowa Farm Bureau, about 50%-70% of Iowa’s corn production is used to make ethanol compared to the national average of about 35%-40%. Iowa alone accounts for nearly 30% of the nation’s ethanol production.

In 2023, Iowa produced about 4.6 billion gallons of ethanol.

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The plan also focuses on how to retain and attract farming talent to Iowa through investments in obtaining refrigerated trucks, increasing the number of rural grocery stores and providing needed equipment to small businesses.

“This plan provides us a pathway to collaborate and really support one another,” Senior Program Director at Iowa Valley RC&D Giselle Bruskewitz said.

President of the Iowa Farmers Union Aaron Lehman, a fifth-generation family farmer, said investments like those are vital for the Iowa agriculture industry where there are more farmers above the age of 65 than below the age of 35.

“We know that the oldest generation of Iowans owns over two-thirds of Iowa’s farmland,” Lehman said. “We need to invest in those opportunities for a more diverse and younger set of leadership opportunities for people in farming.”

Over the past two years, the Iowa Food System Coalition has organized a Food and Farm Day at the Iowa Capitol and invited legislators and state agencies to a food policy summit.

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One of the next steps for the coalition is to educate legislators about the plan so it can be used as a guide to create state policies, Schwartz said.

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They’re back: Japanese Beetles

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They’re back: Japanese Beetles


A Japanese Beetle.

We returned from our three-week sojourn to Alaska to find our property overrun by Japanese Beetles. Dang! Just what I didn’t need, along with everything else that required immediate post-vacation attention: a weedy garden, a tub full of mail, plants to water, bills to pay, laundry to warsh, groceries to buy because there was nothing to eat in the house, Buddy and Stormy to pick up at the vet boarder, phone calls to return, sleep to catch up on, and an Alaska high to come down from. Japanese Beetles pulled me back to reality real quick.

The beetles seem to be a little early this year. I thought they were more of a mid-July nuisance. It must be the weather. And I thought that maybe I had gotten rid of the annual Japanese Beetle infestation by spreading grub control on our yard, since they come up out of the ground near by. Guess not.

I decided this year I would spray them. Last year I set up these Japanese Beetle traps around the property, and they were effective. I must have captured 10 jillion Japanese Beetles, and gave them to a neighbor to feed her chickens. However, I ran into another neighbor who thanked me for keeping the Japanese Beetles away from his property.

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He told me that the pheromone the traps use attracts beetles in a 5 mile radius. I didn’t want to do that again. But I hate using insecticide because it also kills the insects you don’t want killed, like butterflies, bees and praying mantises. Then birds eat the dead insects. Hmm. The dilemma. But I had to do something fast. Literally, a major chunk of our vegetation was being destroyed before our eyes: the aronia bushes, grape vines, fruit trees, rose bushes, hydrangeas, even our rhubarb, asparagus, and pin-oak tree. I went for the insecticide.

This year, I have a sprayer that attaches to the rear of the tractor. I use it for spraying weeds and fertilizing the lawn. It’s a lot faster than using a water-hose sprayer that I have to drag all over our yard. The tractor sprayer made short work of the Japanese beetles.

It got me to thinking about locusts. Where are the locusts? This was supposed to be the year of the two different kinds hatching at once. I have seen or heard nary a locust on the Empty Nest farm. I’ve seen a few in past years, but none this year. I know other areas of the state are seeing the swarm (ha, ha) of locusts. Pictures are all over Facebook, I mean, Meta, excuse me. I have fond memories of locusts as a kid.

We lived on a tree-lined street, and the evening air would be filled with the buzzing of locusts. It was a comforting sound, one that I remember going to sleep to, in the days before air conditioning, when we left windows open at night. Some of the locusts would even visit during the night, and be clinging to the screen when I woke in the morning.“Wake up, sleepy head!” I collected their empty shells and stuck them on my finger like a ring.

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The field across the road from us has something green and grassy looking growing in it. For the life of me, I couldn’t figure out what it was. Finally, while getting the mail, I walked over to the field and had a look-see. What in tarnation? I pulled a stem of the plant, laden with bearded heads pointing down. It was something I didn’t recognize. I took it into the house and showed Ginnie.

She has an app on her phone that identifies plants, flowers, shrubs and trees. She held the plant up to her phone. Voila, it’s oats! Gee willickers, I haven’t seen oats since I was a kid. Back in my day, most of the farmers raised oats. There was what we called, “Kennedy Oats.”

It was part of the Soil Bank program (a forerunner of CRP). But oats have taken the back seat to the dual powers of corn and beans. I’m wondering what the farmer is going to do with these oats, sell’m, feed’m or seed’m? Hmm.

Japanese Beetles, locusts and oats. More rain and we’ll all float boats.

Have a good story? Call or text Curt Swarm in Mt. Pleasant at 319-217-0526, or email him curtswarm@yahoo.com. Curt is available for public speaking.

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