Iowa Business Council sees hiring to remain challenging

Recruitment and developing workers ranks at the top of business leaders concerns in the Iowa Business Council’s first quarter survey for the next six months.

Eighty-four percent of those who responded cited attracting, developing and retraining “a quality workforce” as first among their concerns, according to the IBC.

Close behind, at 74 percent, was “unfavorable business climate” — including supply chain challenges, regulations and taxes — and the cost of products, services and inputs at 63 percent.

Overall, the survey found, “largest decrease occurred in the employment index. Expectations dropped 3.96 points, to 63.15. While the score remains positive, the survey reflects an ongoing workforce frustration,” IBC said in a news release.

“The majority of respondents indicate that hiring remains a top concern, with 68 percent declaring the process is difficult or very difficult."

Respondents claimed more than 10,000 openings statewide.

Their expectations for “decreased 2.64 points from the fourth quarter’s findings to an index value of 69.73. Capital spending expectations also decreased, by 2.64 points, to 64.47,” the release said.

The survey’s overall economic index for 2022’s first half was 65.78. A measure above 50 is considered positive.

“While expectations have tempered slightly in the last quarter, Iowa companies remain optimistic about the future,” Tim Yaggi, IBC chairman and president and CEO of Pella Corp., said in the release.

“Business leaders are monitoring global unrest, supply chain issues and workforce challenges, but generally expect robust demand.”

“The optimism our members have projected in this survey over the last seven quarters is a testament to Iowa’s resiliency. We have managed the post‐COVID recovery well and that is reflected in the cautiously optimistic results of the first‐quarter findings,” IBC Executive Director Joe Murphy said.

The 22 chief decision-maker members of IBC include Alliant Energy, Casey’s General Stores, Collins Aerospace, Fareway, Hy-Vee, the Iowa Bankers Association, MidAmerican Energy, Unity of Iowa Health Care, UnityPoint Health and Vermeer Corp.