A new report concludes Iowa’s businesses overall have been “highly productive” and there’s been good job growth in the state in the past decade. However, the study warns Iowa’s low population growth and a lack of graduates with science, engineering and math degrees could dampen future economic growth.
The Iowa Partnership for Economic Progress, a state advisory board appointed by the governor, commissioned the report from the Ohio-based Battelle Memorial Institute. Governor Branstad was on hand for the report’s release.
“I think they did a very thorough and a very good job assessing what we have accomplished, but also the challenges ahead,” Branstad said, “and kind of helping us with a strategy to kind of grow the Iowa economy and bring more good jobs here.”
The study measured the state’s economic output and workforce and it concluded Iowa’s rebound from the 2008 recession has been higher than the national average. Iowa has outperformed the nation in the number of new jobs that require advanced skills, but the report also found that Iowa’s colleges and universities aren’t producing as many graduates with science, technology, engineering and math degrees when compared to all U.S. colleges.
“It shows that the focus on STEM makes sense. We’ve got to accelerate it and we’ve come a long way in the last couple of years,” Branstad said. “We need to continue to keep that focus. I think it is catching on and will make a difference.”
From 2009 to 2013, there was a 31 percent increase in the number of Iowa college graduates with so-called STEM degrees. However, only one out of every 10 Iowa college graduates earned a degree in a STEM-related field. The report also warns Iowa’s population growth is less than half the national average and that will limit the ability of Iowa businesses to expand and hire more workers.
Branstad notes the report also focused on the state of Iowa’s infrastructure, it’s roads, bridges and railroads as well as broadband capacity. The governor along with leaders of Iowa’s business community met Thursday afternoon to publicly discuss the report.
“This will be really a helpful blueprint for our future direction,” Branstad said.