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State unemployment rate now tied for second lowest nationwide

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Iowa Workforce Development employment numbers.

Iowa’s unemployment dropped down to 2.6% in July. Iowa Workforce Development spokesman, Cory Kelly, says that’s down from 2.7% in June.

“That puts Iowa tied with North Dakota for second lowest unemployment rate in the country — and an 18-year low — we haven’t seen this since July of 2000,” according to Kelly. “So, we’re sitting in an interesting spot here.”

Kelly says it is hard to tell if the rate has hit as low as it can go.

“Number one in the nation is Hawaii. They are sitting at two-point-one percent, so clearly environments can go lower than we are now. We’ll just have to see how it all shakes out,” Kelly says. The number of working Iowans is estimated to have increased by 5,200 in July. Manufacturing led the way in new jobs.

“Thirteen-hundred over the month, following another moderate gain of 900 jobs in June,” Kelly says of the manufacturing sector. “Also the financial activity sector added 600 jobs in June and continues to expand its footprint in the Iowa economy.” The construction industry had a small gain if 300 jobs — but is was the sixth consecutive month the industry added jobs.

The negative side of the job market is in retail “We saw retail shed the most jobs in July — down 3,000 — and was responsible for all the losses in trade and transportation,” Kelly says. Kelly says retail has been trending down in jobs since the start of the year as store closings were announced across the state.

“We expect that to continue, or it may continue as online sales continue to gain in popularity around the nation,” Kelly says. The state unemployment rate in July of last year was 3.1%. The U.S. unemployment rate was 3.9% percent in July.

 

Finkenauer, in State Fair speech, stresses family’s union roots

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Abby Finkenauer

Democratic congressional candidate Abby Finkenauer of Dubuque spoke for about six minutes yesterday at The Des Moines Register’s “Soapbox” at the Iowa State Fair.

“I think it’s about time we start talking about hope again because I also realize that we are not a state or a country that grows from fear and division,” Finkenauer said. “We grow from hope.”

Finkenauer also stressed her family’s roots in the labor movement. Finkenauer, a two-term member of the Iowa House, emphasized her opposition to Iowa Republicans’ efforts to roll back union rights.

“I mean, you name it, they’ve gone after it in the state of Iowa and I tell you what, I haven’t just been a vote against those attacks,” Finkenauer said “I’ve been a voice every single time.”

Abby Finkenauer

Finkenauer is challenging Republican Congressman Rod Blum’s bid for a third term in the U.S. House. The race is routinely listed as among the most competitive in the country.

“The energy on the ground is amazing and we’re just going to make sure that we keep getting out there, keep hearing from folks and talking about what Iowans are discussing around their kitchen table,” Finkenaur said during a brief interview with reporters.

Finkenauer indicated her campaign hopes to soon figure out a schedule for debating Blum.

Auditor’s report questions some time sheets from Iowa Workforce Development

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An annual review by the State Auditor’s office found not all Iowa Workforce Development employees appear to be reporting “actual hours worked” on specific programs.

According to the auditor’s report, the department “has not effectively communicated” the proper procedures for keeping track of employee work hours. As a result, payroll costs could be charged to the wrong program.

The agency has a wide-range of duties — it manages unemployment benefits and job training programs, for example — and many operate with a combination of state and federal funds. The auditor says if employees aren’t properly tracking their work hours, payroll costs may be “over reported” to federal programs.

The department says it has directed supervisors to more closely review hourly pay records. In addition, the agency will generate “payroll variance reports” each quarter for employees “who appear not to be changing their time records.”

The auditor cited the agency for an initial report on unemployment insurance payments from Iowa businesses that was off by nearly $13 million. The figure was corrected in a final report, but the auditor has recommended that the agency upgrade the software it uses to calculate unemployment insurance payments.

The auditor also found the agency does not routinely conduct background checks of people applying for “sensitive” jobs in the department, particularly IT staff and employees who handle cash. Iowa Workforce Development officials say they’re talking with the state’s HR agency to come up with a list of sensitive jobs that should require background checks.

Deadline here for Iowa Job Honor Awards nominations

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Kyle Horn

The deadline is tonight to submit entries for the fifth annual Iowa Job Honor Awards.

Kyle Horn is the founder and director of the parent organization, America’s Job Honor Awards.

“The purpose is, we celebrate individuals who have overcome significant barriers to employment,” Horn says, “and in so doing, we’re working to promote the entry of those job seekers into the workforce.” Nominations are being taken at the website www.jobhonor.org. Each year, he says, there have been a wide array of nominees.

“Employment barriers can take a variety of forms,” Horn says. “It may range from prior criminal convictions to a mental or physical disability. It may be immigrant or refugee status. It may be age, a person is encountering ageism in their job search.” It’s not just the job seekers which the awards are aiming to champion.

“We have two categories of honorees,” Horn says. “First, individuals who have overcome significant barriers to employment and second, organizations that do a laudable job of hiring those individuals.” Last year’s winners included the Animal Rescue League of Iowa and SSI Printing of Storm Lake. The winners will be recognized at the Iowa Society for Human Resource Management Conference in Coralville on September 27th.

(By Pat Powers, KQWC, Webster City)

 

Health plan for state employees has no changes

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After this year’s increase in health care expenses for thousands of state employees, the State of Iowa’s next health insurance contract does not include an increase in out-of-pocket expenses for state workers.

“It’s pretty much status quo,” Department of Administrative Services director Janet Phipps said.

Wellmark Blue Cross Blue Shield is providing coverage to about 21,000 workers this year. Wellmark was the only company to submit a bid to provide health insurance for state employees in 2019 and 2020.

“The plan design, all of those things remain the same,” Phipps said, “co-pays, co-insurance, value-added programs — all of those.”

This year, about 54,000 state employees and their dependents got health care coverage through the state. In 2016, state employees paid $20 a month for single and family health insurance plans. After collective bargaining changes Republicans made in 2017, that monthly fee was doubled for to $40 for individual in-state health insurance plans and $150 a month for an in-state family plan. A more expensive national option was available as well.

None of the monthly requirements in place now will not change in 2019 under the contract approved Monday by the state’s Executive Council.

State employees who get dental insurance will see what Phipps describes as a “very modest” one-and-a-half percent increase in their 2019 premiums to Delta Dental.

Website says Iowa 16th overall best place to retire

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Iowa ranks among the top third on a list of best states in which to retire, according to a new report from the personal finance website Bankrate.com.

Analyst Taylor Tepper says Iowa placed 16th overall on the report based on seven main criteria, including things like cost of living, crime, culture, health care and weather.

“Iowa did very well — its best category was cost of living, which is obviously very important for seniors who are living on a fixed income,” Tepper says. “It finished #11 and that really propelled it up towards the rankings. Health care quality, Iowa finished #12.” The Hawkeye State landed relatively high on the report thanks to its good placement in key categories which are important to retirees, things like health care costs and crime.

“You’re going to spend some $280,000, a couple will — when they turn 65, throughout their retirement on health care, so you want to make sure those dollars are going toward better outcomes,” Tepper says. “On crime, Iowa’s a relatively safe place to live.” There were only a few areas where Tepper sees room for Iowa to make improvements.

“The main places where it didn’t do particularly well were weather and taxes,” Tepper says. “Weather, Iowa was 33rd, taxes it was 40th. Higher taxes put a bigger burden on retirees who are living on those fixed incomes.” South Dakota ranked as the best state in which to retire, followed by Utah, Idaho, New Hampshire and Florida. New York placed last on the list, just below New Mexico, Maryland, Louisiana and Arkansas.

 

 

SBA leader says low supply of workers will lead to wage growth

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Governor Reynolds and SBA director Linda McMahon.

The head of the U.S. Small Business Administration was in Iowa today for a roundtable discussion with women business owners. The Iowans told Linda McMahon they’ve purchased new equipment, increased advertising and one plans to reinstate her company’s bonus program because of federal tax cuts.

A report released Thursday shows no overall growth in hourly wages in June of this year compared to June of last year. McMahon said she doesn’t dispute that statistic, but it doesn’t match what she’s hearing.

“Most of the businesses that I talk to around the country, I am constantly hearing that: ‘We are increasing our wages,'” McMahon said. “I mean, we heard today there are more 401K contributions not only from the company, but from the employees.”

Senator Ernst. Governor Reynolds, McMahon and Senator Grassley.

Other factors point to a “really healthy” economy where wages will start to rise, according to McMahon.

“We will see competition in the marketplace for workers and wages will go up as a result of the supply and demand issue…because there are fewer employees out there looking for work,” McMahon said.

A woman who owns a business in Pella told McMahon she’s hiring people from Missouri and Minnesota who keep their homes there, but commute for the work-week. McMahon says encouraging internships and especially apprenticeships will help Iowa students and Iowa businesses fill jobs here.

McMahon has visited 40 states since she took over as the leader of the Small Business Administration in early 2017.

Canadian-owned DeWitt company blames layoffs on steel tariffs

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An eastern Iowa factory is laying off workers, a move it blames on the Trump Administration’s tariffs on imported steel from Canada.

Black Cat Wear Parts has laid off ten production workers. Plant Manager Josh Daniel confirmed what he hoped would be “temporary layoffs.” He said there are still 26 workers at the DeWitt facilities in areas such as the warehouse, maintenance and office.

Black Cat is a Canadian based company with DeWitt the only U.S. operation. The company makes construction blades and wear parts for mining and road maintenance equipment. Steel imported from Canada is used in the production at the company. Daniel said the tariff on steel imported from Canada is the reason for the cuts.

The 25% tariff was imposed a few weeks ago. Daniel said most of the production done at the DeWitt plant has been moved to plants in Canada. He said the items can be manufactured in Canada and distributed to their end users without the tariff. Daniel said the company is committed to DeWitt and hopes to bring back the workers soon if a trade agreement can be settled. The Black Cat plant manager called this a bump in the road.

The tariff also has halted the firm’s expansion plan in DeWitt. An additional site had been purchased earlier this year.

(By Dave Vickers, KROS, Clinton)

 

Safety workers now head to fields with detasslers

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Detasslers

The Midwestern summertime tradition of corn detasseling is in full swing.

Seed corn companies hire thousands of mostly teenagers for about 20 days to remove — by hand — the very top of the corn plant to produce hybrid varieties. DuPont Pioneer is one of Iowa’s largest companies.

Production manager Colby Entriken oversees three facilities in northeast Iowa and says they’ve added more safety experts. “We also bring in a field nurse that helps if we get into a situation where we need a little bit more expertise we have that field nurse as a resource,” Entriken says, “and each if the three sites also has an EMT on staff.” Those EMTs handle such things as sprained ankles or heat stress. There’s also a centrally-located decontamination trailer that can be used if workers are inadvertently sprayed by a crop duster.

Entriken oversees hundreds of acres in northeast Iowa and says they have procedures in place to keep track of all detasslers. “They have to know which row each of their workers are in and that way we can track their progress throughout the field,” he says. “Also, as we get in the higher heat index days, we kick the crews out of the fields. When it hits 105 with the heat index, we shut them down right at 2 o’clock.”

Entriken says the minimum age to detassel in Iowa is 14. Those as young as 12 can do the work in Illinois and Nebraska. He says he has many crew leaders who started in their teens and are now in their 50s and 60s.

(By Pat Blank, Iowa Public Radio)

 

Director of U-I Labor Center says workers will be hurt by its closing

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The University of Iowa announced the elimination or cutbacks in funding for 12 of its centers Tuesday.

The Labor Center is one of the programs shutting down. Center director Jennifer Sherer says workers will be worse off without her program. “Knowing how to speak up if they face harassment on the job. Or how to prevent discrimination. What options they have when insurance laws change, and they’ve changed a lot…I mean I’m just running through in my mind the many, many needs that we respond to,” according to Sherer.

She’s gotten some reaction since the announcement that the program will shut down. “Somebody we’ve worked with for a longtime yesterday called and said ‘I can’t believe this is happening!’ You know, he said, ‘You save lives! And you can’t put a price tag on that.’ I don’t think in those dramatic terms sometimes, but that is literally what this kind of education means to people,” Sherer says.

The interim provost of the university say years of state budget cuts forced the decisions. Pulling funding for the programs will save the school an estimated $3.5 million.

(Thanks to Kate Payne, Iowa Public Radio)