Going to work

Iowa's unemployment rate has been falling.

The state's seasonally adjusted unemployment rate for December 2019 was 2.7%, among the lowest in the country. According to the U.S. Bureau of Labor Statistics, Iowa's lowest unemployment rate since 1976 was recorded just last summer in June 2019 when it was 2.4%. Its highest unemployment rate in that same time frame occurred in early 1983 when it hit 9.1%.

Iowa Workforce Development publishes data on unemployment rate by county, and it shows a slightly higher unemployment rate than the U.S. Bureau of Labor Statistics at 2.9% for December (not seasonally adjusted).

Washington and Jefferson counties' rate is even lower than the state average. In December, Washington County posted a 2.5% unemployment rate. Neighboring Jefferson County was at 2.6%, and Henry County was just a few ticks higher at 2.9%.

The total number of unemployed people in December 2019 was estimated to be 300 in Washington County, 250 in Jefferson County and 290 in Henry County.

In the wake of the 2008 recession, the unemployment rate in those three counties spiked at 8.6% in 2009. It has fallen steadily since then by about 0.4% each year.

That can be good news for people looking for work, because it means there are potentially opportunities for them. At the same time, it also means businesses are more likely to be in need of workers they can't find as some positions go unfilled.

Molly Ryan, an account executive in media relations at Cambridge Investment Research just north of Fairfield, said that a tight labor market means it takes companies a little longer to find the employees it needs. She said Cambridge pursues a number of avenues to find talent, such as referrals from current employees and business leaders, job fairs, college career fairs, partnerships with high school and college clubs, and many other ways.

Like several other employers in southeast Iowa, Cambridge has been able to add positions in the past decade. In fact, the company's growth has ballooned since it moved to its location on Pleasant Plain Road in 2009, more than doubling its workforce in that time. It now has nearly 900 associates, including 726 who are based in its Fairfield offices. Ryan said the company draws employees from all surrounding counties and even as far away as Iowa City and the Johnson County area.

Jessica Keil, human resources manager for Premier 1 supplies in Washington, said her company has been lucky in that it hasn't felt the effects of the labor shortage too much.

She said the business employs 55 workers, and that most of its open positions are newly created because the company is growing. She said the business does not have much turnover, so it hasn't had to worry about filling positions like other businesses during this tight labor market.

'I think our low turnover is related to us taking good care of employees and offering competitive pay and benefits,” Keil said. 'It also has to do with where we're located. We have a lot of employees from Washington County who want to work locally. Plus, we're a family-owned business, so that plays a big part as well.”

Keil said the only place where the business has struggled to find talent is for its seasonal positions. The business began by selling sheep fencing, and then expanded into selling other supplies related to sheep, goats and chickens. It caters to customers who raise the animals as a full-time job or as a hobby after work. The company's busy season is from March through July, when it's processing a large number of orders and that in turn means hiring seasonal help. Keil said finding it takes a little more effort nowadays.

'This time around, it has been harder to find skilled workers with a positive work history to get into our seasonal positions,” she said.

At the same time, some openings attract applications from far and wide. Keil mentioned that when the company posted an opening for its product manager position, it received resumes from all over the country.

Washington School Superintendent Willie Stone said the low unemployment rate can be felt at the school, too. He said it's most noticeable when the district needs to hire a non-certified position, such as a cook, custodian or paraprofessional.

'Some of them go unfilled for long periods, and we have to hire a substitute,” Stone said. 'Most of them are jobs we need, they're not a ‘plus one' position. We are constantly interviewing people for the positions. Our biggest challenge has been finding paraprofessionals.”

Washington Community School District, just like other school districts, is struggling to fill its teaching positions, too. Stone said he couldn't speculate on how this shortage is affected by the overall tight labor market, but he said its effect is unmistakable: the district receives few applications for teaching jobs.

'Fewer teachers are coming out of college, and since we have fewer graduating, the shortage is getting bigger,” Stone said. 'At my last school district in southwest Iowa, we'd get just one applicant for an open job. Almost all of the applicants have offers from multiple school districts. Not as many people are going into the field of education.”

Washington Economic Development Group (WEDG) Executive Director Willie Stone said it's extremely difficult for all businesses to find help.

'The shrinking labor force has been pushing wage rates up, which could be good or bad, but we like to say that a rising tide lifts all ships,” he said. 'When I was in college, 2% unemployment would have been considered full employment.”

Collins said Washington County's unemployment rate is even lower than a lot of surrounding counties because it's got a fair number of rapidly growing businesses that are gobbling up all the workers.

'We've got some that are fairly young, and others that have been around a longtime but are in an aggressive hiring mode,” Collins said. 'With a low unemployment rate, businesses have to be more aggressive in hiring.”

Collins said that in order to attract workers from outside the area, the city and county must ensure potential workers have the amenities they need, from adequate housing to child care.

'Things like a new YMCA or a new library are services that are important in growing a community's workforce,” Collins said.