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Release: June 15, 2000

UI report predicts growth in employment, income

IOWA CITY, Iowa -- Employment and income in Iowa will continue to grow, according to the Iowa Economic Forecast released today by the University of Iowa Institute for Economic Research.

The report was prepared for the Iowa Economic Forecasting Council, which received it today in Des Moines.

Beth Ingram, institute director, says that the Institute's economic model predicts that real personal income in Iowa will rise by 4.9 percent in 2000 and 3.0 percent in 2001.

"Income growth in the final quarter of 1999 and over the first quarter of 2000, in both Iowa and the nation, was much faster than we had expected," Ingram commented. "This pace of economic activity is expected to moderate over the course of the year."

Current predictions for employment growth suggest that non-farm employment in Iowa will grow by 1.1 percent in 2000 and 0.24 percent in 2001.

Taken as a whole, the Iowa Economic Forecast points to a faster pace in economic activity in 2000 than was previously expected, and a moderate pace in 2001. Slow employment growth continues to be a feature of the Iowa labor market in both 2000 and 2001.