Workforce issues remain, despite high employment rate

WASHINGTON — While state data shows Washington County’s unemployment rate dropping from 2021 to ‘22, business leaders say they see few signs of relief for an ongoing shortage of labor.

The December Iowa Workforce Development report pegged Washington County’s labor force at 11,900 people, 11,600 of them already employed. The remaining 300 represent a 2.7% unemployment rate, slightly above the broader Iowa City Metropolitan Area and Washington County’s November numbers, (both 2.4%) but below the 3.1% rate for the state overall.

Washington Economic Development Group Executive Director Mary Audia said businesses were still working to “squeeze water from a turnip” by prioritizing housing and child care initiatives, alongside efforts to promote job openings.

“What we’re trying to do is get more creative about how we attract people to this region,” she said. “There’s only X number of people.”

Audia said the issue was getting better — however slowly — and not just a statistical fluke. However, different business types told different stories.

“It kind of depends on the sector you’re looking at,” she said. “Mostly, the service sector has lost positions, in the last year. Inflation, I think, is a part of that. If you have to decide between gas, going out to a restaurant, paying your rent, everything’s gone up. So a lot of our service industries are struggling.”

Still, with dwindling numbers of potential employees, it may not be realistic to expect major workforce relief in the near future.

“At this point right now, I think we’re pretty lucky with where we are,” Audia said. “We’re even better than the state. And the U.S. is at like, 3.5% on average … so I think we’re doing pretty good right now and yeah, it’d be great if we had every job filled but I don’t see that happening, at least right now.”

With unemployment numbers so low, Washington Chamber of Commerce Executive Director Michelle Redlinger said most companies had two short term options: adapt to the situation, or entice employees out from other businesses.

“There’s never a time when unemployment will be zero,” she said. “It’s about as low as I’ve witnessed … I feel like we’re really at the point where we are dealing with a workforce that’s transitioning from one employer to another, rather than pulling people out of unemployment.”

That doesn’t mean those are good options. Redlinger said she was hearing fewer workforce complaints than the same time last year, but said that was likely due to fatigue rather than fixes.

"I feel like the drop is less because the (problem) has been solved, but more because no one seems to have a good solution,“ she said. ”Our businesses who are looking to add employees are having difficulties finding those people, and the situation isn’t unique in Washington. It’s definitely statewide and felt across the U.S.“

The “adapt” strategy comes with a cost of its own. Redlinger said employees faced burnout as their workloads increased, and in turn becoming less involved in the broader community.

"I’m definitely hearing from our businesses and community members this level of stress and expectation that’s higher than it’s ever been,“ Redlinger said. ”It trickles down to other parts of the community. Like when I’m working with service clubs in the community … our employees, with the amount of expectations at work or some of the new ways that they’re doing things, that time for themselves, their family, their choice in how they spend those off hours, is also becoming that much more precious.“

The alternative — tapping other employers’ workforce, rather than digging for the rare uncommitted worker — also has potential for failure.

“I have concerns about both tactics,” Redlinger said. “Recruiting someone from another business, that person might be motivated to continue looking for more growth opportunities, so my concern would be their longevity with that new job.”

Despite the situation, Redlinger said things weren’t all doom and gloom. She pointed to Washington’s overall resiliency as a strong suit.

"While I understand the situation is really challenging for a lot of us right now, I think our community has good historical background to position themselves to get out of it,“ she said. ”Hopefully, less scathed than others.“

Comments: Kalen.McCain@southeastiowaunion.com