Univ. of Iowa professor: Labor shortage due to lack of participation

CEDAR RAPIDS, Iowa (KCRG) – For the reason that pandemic, Iowa has seen employee shortages and lawmakers have been concentrating on the problem with totally different proposals and plans.

Forward of the 2023 legislative session, Democratic State Senator Molly Donahue mentioned, “Till we begin altering what we’re doing in Iowa, we’re going to proceed to see the drain of the workforce.”

Nevertheless, in accordance with an Assistant Professor of Economics on the College of Iowa, there’s a scarcity, however the general image proper now isn’t dire.

“Should you have a look at it usually, employment charges in Iowa are excessive they usually’re increased than they’re in a lot of different states, so in that sense there’s not an employment scarcity,” mentioned Harrington.

The labor participation price in Iowa is now 67.7%, nonetheless decrease than earlier than the pandemic. In Jan 2020, it was 70%.

Harrington mentioned that price might enhance with the precise incentives.

“From the agency’s perspective, it’s a bummer to have to lift wages, however elevating wages can be a solution to probably not have it’s a ‘scarcity’ anymore,” mentioned Harrington.

She added the economic system we’re presently residing in is simply uncommon.

“There’s a seeming circumstance the place it’s each onerous for employers to search out staff and onerous for staff to search out employers,” mentioned Harrington.

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