Labor, prices remain top economic concerns

WASHINGTON — The last two iterations of the Washington Progress Edition have focused on two major points of concern widely shared by area businesses: availability of labor, and costs of every conceivable good and service.

This year is no exception.

But experts say the economic picture looks better across the board than it did in 2022.

On employment, Iowa Workforce Development reported statewide labor force participation rising from 68.5% to 68.7% from May to June, the fourth consecutive month of increases for that metric.

The number represents 18,000 more Iowans employed than at the same time last year.

“We’ve seen an increase in the Labor Force Participation rate, which is exactly what we want to see,” said Beth Townsend, executive director of Iowa Workforce Development, in a July 20 news release. “Nearly all Iowans who entered the labor force in June did so by finding a job — that’s encouraging news for job seekers and the health of the state economy as a whole.”

Washington Economic Development Group Executive Director Mary Audia said the local situation was improving similarly but that the process was much much slower for some industries compared to others.

“The biggest area of labor shortage is health care, with our aging population, there’s still consistent need for CNAs, physicians, in this area,” she said. “Health care is huge. In addition, CDLs, truck drivers, we still need tons of people in truck driving fields right now, that’s super important. And then another biggie is the trades: plumbers, electricians, welders.”

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Audia said the issue was largely caused by generation changes. With birthrates down and retirement rates up, many employers see people leaving the workforce faster than they can be easily replaced.

The untapped workforce consists of people without time, or without mobility. Prospective employees can’t work if they have to spend the day taking care of a kid, nor can they accept a job in a city where they can’t find housing.

While Audia said solutions to those issues were coming down the pipes, they are impossible to address overnight.

“You can drive around Washington County and see all these houses going up, all these developments,” she said. “We are very interested in anybody that’s willing to partner with us and is passionate about getting more child care slots open in Washington County. That’s super important.”

As for prices, they continue to climb, according to data from the Consumer Price Index.

Indeed, many business owners interviewed for this special section said material and prices were a noteworthy hurdle in their newest ventures, on everything from construction crews to shipping to pizza toppings.

“We get whole peeled tomatoes from Italy imported, and a case was $70, and now increased to, two weeks ago, it went up to $103 overnight,” Dino’s Pizza & Steakhouse Co-owner Christopher Robbins said. “Everything just keeps slowly rising up.”

There may be a light at the end of the tunnel, however.

In a July 12 news release, the U.S. Bureau of Labor Statistics said the onslaught of price jumps was potentially leveling off. The CPI for All Urban Consumers rose 0.2 percent in June, after increasing 0.1% in May. The 12-month total comes out to an even 3.0%.

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“The all items index … was the smallest 12-month increase since the period ending March 2021.”

In downtown Washington, Main Street Director Samantha Meyer said there was plenty to be excited about. The list includes major renovations at the Greiner Plaza and former Antique Mall, as well as new upper-story apartments, such as above the Washington Evening Journal office.

Meyer has seen the area’s staffing needs get notably less dire since she started at Main Street Washington in November.

“The downtown needs tend to be a lot smaller than, like, Walmart’s needs,” she said. “And people want to work downtown, so that usually helps. They’re very family-oriented places, so they’re very accommodating.”

In another point for optimism, Meyer said sales have gone up, a welcome shift for Washington’s business owners. She said the money was largely coming from out of town.

“A lot of downtown retailers comment about an uptick in sales from Mt. Pleasant, Fairfield,” she said. “Outreach to other communities has gone well. We’ve had an uptick to social media, so I think that helps … and I think that’s really grown in the last year.”

Comments: Kalen.McCain@southeastiowaunion.com