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What Iowa's workforce issues mean for current job seekers
Episode 3715th December 2022 • Careers & Coffee • Corridor Careers
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We had a great conversation with The Gazette's Des Moines Bureau Chief, journalist Erin Murphy.

Recently Erin talked with a state economist in his piece on how difficult it will be to recoup Iowa's worker losses.

Some highlights:

  • Slow population growth for nearly a decade has led to more job openings than people to fill them in Iowa.
  • 'Brain drain' of young Iowans who benefit from Iowa's schools and universities are leaving at higher rates for other states.
  • Retiring and aging workforce leave many skilled positions hard to fill with the sheer volume of them.
  • Immigrants have continued to be the main source of new population in Iowa and many legislatures will be focused on how to reform legal pathways for immigrants who wish to come to Iowa to fill the many jobs we have to fill.
  • Many state-funded upskilling and re-skilling programs are being strengthened by additional funding.

You can read Erin's story here on thegazette.com

So what does this news mean for job seekers? More competition among employers for their skills. Additionally, job seekers who are currently struggling to find jobs or a better career can benefit from multiple apprenticeship or upskilling programs available near them at local community colleges or workforce training centers.

Want to hear more from Erin Murphy? You can sign up for his weekday newsletter On Iowa Politics or listen in to his On Iowa Politics podcast. Once the legislative session in Iowa starts back up in Iowa, Erin will be covering all the happenings at the statehouse.

Transcripts

Liz Kennedy:

Welcome, everyone to Careers and coffee. I have

Liz Kennedy:

with me today a very special guest We're joined by Des Moines

Liz Kennedy:

Bureau Chief Erin Murphy. Erin, welcome to the Careers and

Liz Kennedy:

Coffee podcast - your first time here.

Erin Murphy:

Yeah, it's great to be here. Thanks for having me.

Liz Kennedy:

Awesome. So, um, we have a lot of great journalists

Liz Kennedy:

at The Gazette. And I think it's important that we have

Liz Kennedy:

conversations with them about what's going on with Iowa

Liz Kennedy:

Workforce. And Erin, you wrote a story recently, where you talked

Liz Kennedy:

with the state economist, and I was hoping you can maybe give us

Liz Kennedy:

a little bit of information about that story, it was all

Liz Kennedy:

about how Iowa's worker losses will be difficult for us to

Liz Kennedy:

recoup. So can you talk to us a little bit about that?

Erin Murphy:

Yeah, absolutely. It was interesting, because I

Erin Murphy:

think a lot of us have heard and especially if you follow the

Erin Murphy:

news regularly, you've probably heard about the workforce issues

Erin Murphy:

that are out there. And it's not that part of it is not unique to

Erin Murphy:

Iowa, a lot of states are dealing with that still coming

Erin Murphy:

out of the pandemic, that a lot of workers just didn't return to

Erin Murphy:

the workforce. And so a lot of businesses are having difficulty

Erin Murphy:

hiring and that worker shortage is is very prevalent. What was

Erin Murphy:

unique and interesting, in this discussion that I had with Peter

Erin Murphy:

Orazem who is a professor of labor economy, economics at the

Erin Murphy:

Iowa State University, was how he talked about what may be

Erin Murphy:

somewhat unique to Iowa, could be the difficulty that our state

Erin Murphy:

will have recouping those workers making up for those

Erin Murphy:

losses. And, and some of the reasons why that is so so while

Erin Murphy:

the problem is, like I said out there for every state, Iowa may

Erin Murphy:

have a harder time rebounding from from this than other

Erin Murphy:

states.

Liz Kennedy:

Does that kind of tied to our slow or non existent

Liz Kennedy:

population growth? Is that kind of what he's referring to?

Erin Murphy:

Yeah, that is a big part of it. That has been an

Erin Murphy:

issue in Iowa for boy more than a decade. Now. The, like you

Erin Murphy:

said, I think you put it well, slow to border line non existent

Erin Murphy:

population growth here in Iowa, we've lagged far behind the rest

Erin Murphy:

of the country in population growth. So that's a big part of

Erin Murphy:

it. Another part of it, and it kind of links to another sort of

Erin Murphy:

story that I wrote that's kind of tangentially related to this

Erin Murphy:

a little while back, is the issue with Iowa, so called brain

Erin Murphy:

drain, which is young people who are raised and educated here,

Erin Murphy:

but then leave the state to join the workforce elsewhere and

Erin Murphy:

don't come back. So I was a little older than the average

Erin Murphy:

population. So we have more people retiring, and fewer young

Erin Murphy:

people staying in the state and replacing those workers who

Erin Murphy:

either retire or leave or leave the state for other reasons. And

Erin Murphy:

we don't, as we just talked about, our population isn't

Erin Murphy:

growing, we don't attract a lot of people to the state, either

Erin Murphy:

compared to other states. So all that kind of adds up, and is

Erin Murphy:

what this economics expert was talking about what may make it

Erin Murphy:

difficult for our state to recoup these worker losses.

Liz Kennedy:

So that's really interesting, because there are

Liz Kennedy:

still quite a few job seekers in the state of Iowa that are

Liz Kennedy:

looking for work that are kind of you know, that would say that

Liz Kennedy:

they are struggling to find work, even though we have like

Liz Kennedy:

these kind of lots of positions that are either open now or soon

Liz Kennedy:

to be open because of retiring workforce. I don't know if you

Liz Kennedy:

have any thoughts on that?

Erin Murphy:

Yeah, I mean, I don't have the the magical

Erin Murphy:

answer other than I know that part of what you're describing

Erin Murphy:

there is a need to kind of match the skill levels that are

Erin Murphy:

required for the jobs that are open versus the skill levels

Erin Murphy:

that are in, possessed by our people who are working looking

Erin Murphy:

for jobs right now. And maybe that's I know, that,

Erin Murphy:

traditionally is an issue. And that's why there are state

Erin Murphy:

programs designed to address that try to help people get the,

Erin Murphy:

you know, skills for certain kinds of jobs, whether it's

Erin Murphy:

trades or whatever it may be. So that may be where some of that

Erin Murphy:

disconnect, is that the yes, there are some people who are

Erin Murphy:

looking for work too. And maybe they just don't have the right

Erin Murphy:

skills that match the jobs that are open right now. You will

Erin Murphy:

hear people say that some of the jobs that are open aren't the

Erin Murphy:

best paying jobs and that's part of the problem although you're

Erin Murphy:

starting to see that change now too. I mean, if you look all the

Erin Murphy:

way to the you know, the basic level where like, you know, fed

Erin Murphy:

fast food places are starting to pay well above the minimum wage

Erin Murphy:

now you know, not uncommon at all to see, you know, the

Erin Murphy:

McDonald's and Burger Kings of the world's hiring for $15 an

Erin Murphy:

hour in Des Moines anyways, I can say so. So yeah, so that so

Erin Murphy:

that disconnect is still there to your right. And and yeah, I

Erin Murphy:

didn't talk with Peter about that specifically. But I do know

Erin Murphy:

that that that skills issue is something that the state has

Erin Murphy:

tried to tackle.

Liz Kennedy:

So you talked about some programs at the state

Liz Kennedy:

level. And since you're covering kind of state, are you seeing

Liz Kennedy:

more conversations about those are just more news about the

Liz Kennedy:

different programs? It sounds like there's a lot of money

Liz Kennedy:

headed to community colleges to help people upskill. But, yep,

Liz Kennedy:

the reality is that it's always a lag between the job seekers

Liz Kennedy:

knowledge of those programs and their ability to get into those

Liz Kennedy:

programs.

Erin Murphy:

Yeah, yeah, that's a great point, I do hear a lot

Erin Murphy:

of conversation around those kinds of programs. And I'm

Erin Murphy:

guessing I will again, in a couple of weeks here, the

Erin Murphy:

legislative session for 2023 will begin, I would be shocked

Erin Murphy:

if this is not a topic of conversation, at least to some

Erin Murphy:

degree, about what they can do to not only continue to sport

Erin Murphy:

those existing programs, but maybe develop new ones or or add

Erin Murphy:

more resources to them. So more funding to them, so more people

Erin Murphy:

can take advantage. It will be interesting to see how that

Erin Murphy:

discussion plays out right now. But I do expect to hear it. I do

Erin Murphy:

expect state lawmakers to try to address this and in any ways

Erin Murphy:

that they can.

Liz Kennedy:

Yeah, I think there's even this I don't think

Liz Kennedy:

it was your story. But it was Iowa City labor, apprenticeship

Liz Kennedy:

that they had going with like a smaller group down there, where

Liz Kennedy:

they were able to get all kinds of workers into an

Liz Kennedy:

apprenticeship program. And it was just a very grassroots

Liz Kennedy:

level. And I think they use like pandemic funds or ARPA funding

Liz Kennedy:

or infrastructure funding for that.

Erin Murphy:

One of one of those. And yeah, and that's a

Erin Murphy:

great point, too. That's, I mean, there's so much of that

Erin Murphy:

funding available right now, I don't know that the number the

Erin Murphy:

percentage off the top of my head right now. But I know this

Erin Murphy:

state of Iowa still hasn't gone through all of its federal

Erin Murphy:

relief funding, and it's been putting money into programs

Erin Murphy:

already. And I'm sure we'll see more. So there's opportunities

Erin Murphy:

right now, without a doubt to to to bolster those kinds of

Erin Murphy:

programs. So that's why I say it'd be very interesting to see

Erin Murphy:

what legislators prioritize and what they've tried to address

Erin Murphy:

this session.

Liz Kennedy:

Yeah, that will be interesting. Um, do you feel

Liz Kennedy:

like there's just kind of, I don't know if you are covering

Liz Kennedy:

this, but like, are there certain industries that you're

Liz Kennedy:

seeing that are going to struggle more from this brain

Liz Kennedy:

drain or, or even this the retire? You know, there are some

Liz Kennedy:

businesses in Cedar Rapids even that have a large group of aging

Liz Kennedy:

workforce that may all retire relatively within the same

Liz Kennedy:

timeframe?

Erin Murphy:

Yeah, that's a really good question. I haven't

Erin Murphy:

heard about any specific industry that's more worried

Erin Murphy:

about that, then than others. I think it's fairly widespread.

Erin Murphy:

It'll be interesting to see manufacturing, maybe, if that

Erin Murphy:

could be an industry that's a little more on edge over this

Erin Murphy:

than the others. But my sense is, and I think it's an

Erin Murphy:

interesting question, it'd be a good one to put to some more

Erin Murphy:

folks, like I've been talking to, but the is that it's it's a

Erin Murphy:

pretty widespread issue. And there's no one industry that's

Erin Murphy:

more concerned than the others. I think it's just, it's, it's

Erin Murphy:

impacting everybody.

Liz Kennedy:

Do you think it's getting in the way of us, you

Liz Kennedy:

know, capturing new businesses to move to Iowa because we don't

Liz Kennedy:

have enough workforce? Or?

Erin Murphy:

I, it's hard to you know, I can't point to specific

Erin Murphy:

examples. But it's hard to imagine that it's not having

Erin Murphy:

that kind of impact, and, and all of those things that we

Erin Murphy:

discussed. So if if there's a worker shortage, it kind of

Erin Murphy:

creates its own vicious cycle, right? If there's a worker

Erin Murphy:

shortage, then maybe businesses are more hesitant to come in.

Erin Murphy:

And then if businesses are hesitant to come in, then

Erin Murphy:

there's less reason for those young people that we educate to

Erin Murphy:

stay here, you know, because the opportunities are somewhere else

Erin Murphy:

instead. So and that's why what Professor Orazem had to say

Erin Murphy:

about this was all interested. Interesting, because it's it's

Erin Murphy:

tough to see what's the you know, the method or the approach

Erin Murphy:

that kind of breaks that cycle and kind of gets I we're headed

Erin Murphy:

in the right direction. One of the things that and I can't

Erin Murphy:

remember if he said this, specifically, or I know at

Erin Murphy:

talking to other business groups, I hear this a lot and I

Erin Murphy:

apologize, I'm scanning My story he did say this specifically.

Erin Murphy:

And I have, but I also have heard this from other business

Erin Murphy:

groups is immigration. And that's one way that I will can

Erin Murphy:

welcome new people and, and people who could potentially

Erin Murphy:

jump in and join and help bolster the state's workforce,

Erin Murphy:

you hear that a lot about the need for, you know, a good

Erin Murphy:

strong immigration program at the federal level, and then

Erin Murphy:

whatever reforms that need to come to make it so people who

Erin Murphy:

want to come here, legally can't come here and, and find a home

Erin Murphy:

and, and become members of the community, including members of

Erin Murphy:

the workforce. And that's one thing I hear about a lot from

Erin Murphy:

Iowa, economic experts and business leaders.

Liz Kennedy:

So that's interesting. Do you kind of

Liz Kennedy:

wonder if some of these things will kind of solved themselves

Liz Kennedy:

over time, just because we know that there's a decline in

Liz Kennedy:

students that Iowa high school is pursuing college degrees, so

Liz Kennedy:

they're gonna filter more into these community colleges, which

Liz Kennedy:

potentially could fill them into these, you know, jobs that no

Liz Kennedy:

one grows up thinking, I'm going to be this when I grew up,

Liz Kennedy:

because the job either didn't exist, or it's just really hard

Liz Kennedy:

to describe, you know, we were talking with a hospital and

Liz Kennedy:

like, how do you describe the role that is the central

Liz Kennedy:

sterilization role? You know, like, what is that worker

Liz Kennedy:

called? And, and, you know, what goes into that job? Is that a

Liz Kennedy:

rewarding career? You know, it's sometimes it's hard for these

Liz Kennedy:

businesses to just kind of explain the different jobs that

Liz Kennedy:

they have done, because they've evolved over the years and

Liz Kennedy:

changed and they require, you know, definitely skills and

Liz Kennedy:

expertise, but not necessarily a four year degree, you know,

Erin Murphy:

yeah, and I think that's exactly the point. And

Erin Murphy:

you are seeing a definite shift in that conversation about the I

Erin Murphy:

feel like for a while there, and certainly, while I was growing

Erin Murphy:

up it, the only goal was to go to a four year college, right, a

Erin Murphy:

four year degree. And I think you are definitely seeing that

Erin Murphy:

conversation shift in recent years. And it feels like it just

Erin Murphy:

keeps growing and growing. And this whole situation may make

Erin Murphy:

that conversation grow even more, because, because to the

Erin Murphy:

point you're making there, there are a lot of jobs out there, and

Erin Murphy:

not just, you know, jobs in the most basic sense, you know, good

Erin Murphy:

careers, good paying jobs, that can be good careers that you can

Erin Murphy:

be trained for, with a two year degree at a community college or

Erin Murphy:

other kinds of programs. So you're definitely starting to

Erin Murphy:

see that conversation shift. And just circle back to your to your

Erin Murphy:

question. Yeah, I think this could potentially right size

Erin Murphy:

itself. Eventually, you know, as as that conversation continues,

Erin Murphy:

and more people kind of look to these kinds of careers, and that

Erin Murphy:

kind of training, you know, right from the start, rather

Erin Murphy:

than, you know, trying a different path and realizing

Erin Murphy:

later in life that maybe a different route was better. I

Erin Murphy:

think you'll see more young people starting on that path,

Erin Murphy:

right from the get go. And maybe that helps us kind of, you know,

Erin Murphy:

like I said, kind of right size this more naturally, huh.

Liz Kennedy:

Well, this has been a great conversation. Erin, I

Liz Kennedy:

think if we have any advice for job seekers, I think the picture

Liz Kennedy:

for Iowa is a little bit darker, you know, just not having this

Liz Kennedy:

population grow. But for the job seekers in Iowa, the picture is

Liz Kennedy:

a little bit brighter, because whether or not we go through a

Liz Kennedy:

recession next year, where there's a sluggish growth, there

Liz Kennedy:

will still be lots of employers competing for local talent to

Liz Kennedy:

fill positions. So the the opportunity plus the

Liz Kennedy:

opportunities we talked about with reskilling are growing in

Liz Kennedy:

iOS. So there is a lot of opportunity, if you're not in a

Liz Kennedy:

role that you like to reskill if you're having trouble finding a

Liz Kennedy:

role, you know, upskilling and, you know, taking advantage of

Liz Kennedy:

some of these programs. So we'll put all that in the show notes

Liz Kennedy:

along with Aaron's story. And thanks so much for joining us

Liz Kennedy:

for our first journalists careers and copy. I'm pretty

Liz Kennedy:

excited about this.

Erin Murphy:

Yeah, thanks so much. And it's a great topic.

Erin Murphy:

It's a great discussion. It's a huge issue. And this story that

Erin Murphy:

we you talked about, and then I referenced the one earlier, it

Erin Murphy:

was some of the stories I've gotten the most reader feedback

Erin Murphy:

on which is kind of surprised to me for all the things that I

Erin Murphy:

cover. So it's obviously an issue that a lot of people are

Erin Murphy:

tuned into too. So I think any conversation we can have about

Erin Murphy:

it's a good thing.

Liz Kennedy:

That's awesome. All right. Well, thanks. You have a

Liz Kennedy:

great day.

Erin Murphy:

Thank you, Liz, you too.

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