NEW REPORT: Iowa is “At High Risk” of Recession as State’s Economy Continues to Backslide

NEW REPORT: Iowa is “At High Risk” of Recession as State’s Economy Continues to Backslide

DES MOINES, IA – A new analysis from Moody’s Analytics has labeled Iowa as one of 22 states either in or at high risk of a recession, underscoring growing concerns about the state’s struggling economy.

In the past year alone, Iowa has lost more than 9,000 manufacturing jobs, primarily in machinery and food production. Recent layoffs show the real implications these layoffs have on working Iowans: John Deere recently announced more than 200 job cuts across three Iowa factories, and in July alone, over 400 workers across industries – at John Deere, Lennox, FedEx, Winnebago, and TreeHouse Foods – all faced layoffs, hitting families and entire communities hard.

“This report confirms what Iowans have been feeling for months: our economy is on the verge of recession, costs are too high, and wages are stagnant. While this should be a wake-up call for our leaders, they’re focused on anything but solving our economic challenges,” said candidate for governor Rob Sand. “Agriculture and manufacturing are the backbone of our economy — and when Iowa’s farmers and manufacturers struggle, the whole state feels it. We need leaders who get to work to fix what’s broken instead of continuing to divide us by focusing on culture wars.”

This report is just the latest in a series of bad rankings and outlooks Iowa has received recently:

The Trump administration’s Bureau of Economic Analysis reports that Iowa’s real GDP shrank by 6.1 percent in the first quarter, the worst rate in the nation
The Trump administration also ranks Iowa’s economy 49th overall, second worst in the country, and 48th for personal income growth.
A new report from WalletHub named Iowa’s economy the worst in the nation based on “economic activity, economic health, and innovation potential.”
New data showed Iowa ranks 44th in the nation for hourly wages and dead last among Midwestern states.
Iowa’s once first-class public school system is now ranked only in the middle of the pack.
Iowa is ranked number one for cancer growth in the nation.

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