Hunter
01/13/26
An updated report from the nonpartisan Federal Reserve Bank of Philadelphia finds that Iowa is dead last in the country for economic growth.
The report combines four state-level indicators to determine rank; nonfarm payroll employment, average hours worked in manufacturing, the unemployment rate and wage and salary disbursements deflated by the Consumer Price Index.
Last year at this time, the state ranked 25th.
Iowa Democratic Party spokesperson Terra Hernandez said in a statement that the numbers don’t lie, and after a decade of one-party rule, Iowa’s economy is in crisis.
A release from Rob Sand for Governor said the report is just the latest in a series of bad rankings that Iowa has received lately. They include:
-A recent analysis from Moody’s Analytics has labeled Iowa as one of 22 states either in or at high risk of a recession;
-Iowa currently ranks 48th in the nation for personal income growth;
-Iowa has the worst state economy in the country, according to a WalletHub report that looked at economic activity, overall health, and innovation potential; and
-CNBC’s 2025 “Top States for Business” report shows Iowa dropping 14 spots in business friendliness, falling from 33rd to 39th in overall economic ranking, and from 27th to 41st in workforce ranking.