The latest survey from the Iowa Business Council shows a drop in optimism for the next six months among the states 20 largest businesses. The projections are measured on a 100-point scale, with sales dropping four points and capital spending and hiring expectations both falling ten points. I-B-C executive director, Elliott Smith says that dropped the overall index eight points over the last survey three months ago.

Smith says the survey has been have a good year up until this quarter, with steady growth in the indicators since the middle of 2009 when the recession hit bottom. “Definitely a pullback in this quarter,” Smith says. Smith says even with the drop, they still are on the positive outlook side for each of the indicators.

He says he hopes this is an aberration for one quarter after coming out of “fairly complicated and frustrating budget talks in Washington,” along with the uncertainty in Europe and some natural disasters that have lent some uncertainty to the business market. Smith doesn’t know if this indicates a possible second recession.

“You know it’s really hard to tell exactly if we’re looking at anything that’s significant and long-term in nature, or if it’s more just a pull back and reboot for the next six months,” Smith says. He says the I-B-C still remains confident with all the numbers still in the positive outlook area, and sales remain strong. Smith says this is hopefully businesses just “checking signals” before they step ahead with any big plans. He says they are hopeful the economic turnaround will continue forward and not falter.

Smith says the president has a major speech next week and if the reaction is good, things may bode well for the rest of the year. Seventy-nine-percent of the businesses in the survey still say they expect hiring levels to remain steady or increase in the next six months. Only 16-percent says they expect sales to decrease in the next six months. See the complete survey at the Iowa Business Council’s website at:www.iowabusinescouncil.com.

(Radio Iowa)

The annual “State of Working Iowa Report” from an eastern Iowa think tank concludes the state’s economic recovery has been “painfully slow.” Noga O’Connor, a research associate with the Iowa City-based Iowa Policy Project, co-authored the report.

“We know that the state is doing better than the nation, but still we’re in much worse shape than we were before the recession hit,” O’Connor says. “So as far as unemployment, underemployment, job losses — all the measures that we traditionally look — we are still really struggling and have a long way to go to get back to where we were in 2007 or the first half of 2008.” The number of unemployed Iowans has swelled and 33 percent Iowans who are currently unemployed have been out-of-work for more than half a year. O’Connor says “underemployment” has grown to nearly 12 percent, as many Iowans have either taken a part-time job or dropped their search for a job altogether.

“Even once we gain the missing jobs, we are still — as far as wages — nowhere near where we used to be,” O’Connor says. “And the kinds of jobs that we are gaining seem to be lower-paying jobs, while the jobs that we have lost were the higher-paying jobs.” The Iowa Policy Project found wage levels in 2010, when adjusted for inflation, were lower than they were a decade earlier in Iowa.

“In several wage categories, we are at the very bottom nationally,” O’Connor says. The Iowa Policy Project identifies what it calls a “jobs deficit” in the state and concludes Iowa’s economy would have to add three-thousand jobs each month for the next three years in order to restore Iowa’s overall employment level to what it was in early 2008, when the recession began.

(Radio Iowa)