NEW REPORT: Iowa Residents Fleeing the State At One of the Highest Rates in the Country
DES MOINES, IA – A new report shows residents are fleeing Iowa at one of the highest rates in the country, with Iowa ranked as the seventh most “outbound” state in the country between 2024-2025.
This troubling trend comes as Iowa’s economy shows heightened signs of strain. In addition to people fleeing the state, Iowa is also on the brink of a recession: according to Moody’s Analytics, Iowa is one of 22 states considered in or at high risk of a recession. At the same time, Iowa currently ranks 48th in the nation for personal income growth, and data from the Bureau of Labor Statistics revealed Iowa ranks 44th in the country for hourly wages — dead last among all Midwestern states.
Iowa’s elected officials and a decade of one-party control has led to people leaving Iowa for other states where they have access to better opportunities, can earn more money, and where their fundamental freedoms aren’t under attack. This outbound migration drains our economy, weakens our workforce, and leaves good jobs across industries like health care and manufacturing sitting empty.
“As a dad and a born-and-raised Iowan, I want my kids to be able to stay here to live, work, and raise their own families some day like I was able to. We’re losing our next generation of Iowa workers to other states because Iowa isn’t delivering the good jobs and opportunities they need or deserve,” said candidate for governor Rob Sand. “The failures of our current officials are driving workers across the border in search of better pay and a better future. Whether it’s our economy, workforce, education system, or rising cancer rates, we’re winning contests we want to be losing, and losing ones we want to win. Iowans need a leader who will put them first.”
This report is just the latest in a series of bad rankings and outlooks Iowa has received recently:
- Iowa currently ranks 48th in the nation for personal income growth.
- In just one year, Iowa’s unemployment rate has climbed from 3.3 to 3.7 percent, leaving nearly 65,000 Iowans out of work.
- On top of that, layoffs keep piling up. In the past year alone, Iowa has lost more than 9,000 manufacturing jobs, primarily in machinery and food production.
- CNBC’s 2025 “Top States for Business” report shows Iowa dropping 14 spots in business friendliness, falling from 33rd to 39th in overall economic ranking, and from 27th to 41st in workforce ranking.
- Iowa’s unemployment rate is also rising faster than the national average, growing 0.4% compared to 0.3% from 2024 to 2025.
- The Trump administration’s Bureau of Labor Statistics revealed Iowa ranks 44th in the country for hourly wages, and comes in dead last among all Midwestern states.