Officials discuss initiatives to address workforce shortage in Corridor, across Iowa

While there’s no “silver bullet” for addressing Iowa’s ongoing workforce shortage, several resources and initiatives at both the state and local levels can help local business leaders cope with their employment issues, officials stressed at a workforce luncheon hosted by the Cedar Rapids Metro Economic Alliance (CRMEA) Oct. 11 at The Hotel at Kirkwood Center. The event, “Training and Building the Workforce Pipeline” for the Cedar Rapids metro business community, brought together more than 200 area business and government leaders. Presenters at the event discussed recent changes in unemployment benefits, case worker progress, training and apprenticeship efforts, and other programs to help businesses grow their workforce. Kathy Anderson, director of Iowa Workforce Development’s Business Engagement Division, was one of the event’s featured speakers. Ms. Anderson, who was hired in September 2022 to help launch the new IWD division, said she and her colleagues have learned a great deal about the needs of the state’s business community over the past year. “One of the first questions that we received at that time was ‘what's your strategic plan? What are your goals?’” Ms. Anderson said. “And I said ‘well, that's a great question.’ If I were to do that in a vacuum, that may be somewhat reasoned, but it made a whole lot more sense to me to make sure that we were actually engaging with businesses, talking with companies and employers of all sizes across the entire state to make that decision a little better informed. So we did that, and we learned a significant amount (in) those first 100 days.” The engagement division’s team of business consultants met with nearly 2,700 companies statewide in those first 100 days, Ms. Anderson said, and is close to its goal of meeting with 5,000 individual companies this year. One of the goals of those meetings, she said, is to ensure that employers are aware of the variety of state workforce programs available to them, and that they feel comfortable reaching out to the state for help. “We want to make sure that (our) team is available for you as employers when you're ready, at whatever step in the process that you are,” she said. “That means companies who are growing, companies who may be contracting for a period of time, companies in manufacturing – we want to come alongside and be the kind of partner you need at that moment. We don't expect you to know all 134 workforce programs across the state. And with state realignment, we’re excited that those programs are coming together, becoming more streamlined and flexible.” The team of business recruitment consultants is diverse, Ms. Anderson said – some are retired business owners or people who recently sold their companies, while others may have military backgrounds or experience with child care providers. “They're all bringing something unique to the table,” she said, “and we all collaborate very closely on pretty much everything that touches the workforce.” The Business Engagement Division was formed by Iowa Governor Kim Reynolds in the wake of the COVID-19 pandemic, in an attempt to eliminate redundancies and confusion, Ms. Anderson said. “We were hearing from a lot of people that there were a lot of workforce programs, but they weren’t sure which one was going to work for them,” she said. “Or maybe they heard about a program, but by the time they figured out how to access it, the application period had already closed.” There is some good news on the state’s labor front, Ms. Anderson said. In the first quarter of 2023, the state’s labor force participation rate stood at 68.7%, up by five points in the past year, and one of the highest rates in the nation. “That’s such an important measure for us all, whether you're in state government, whether you're in economic development, workforce programs, community colleges, or you're an employer,” she said. “It's not the only metric, but it's an important one. And I think just as often, we're hearing the question: Where did all the workers go? That's in lieu of having a pretty high labor force participation rate. So honestly, that shows why meetings like this are so important, because every little thing that you do, that moves the needle just a little bit further, makes a difference.” Other state initiatives, including lowering the unemployment eligibility period, leading to a 45% reduction in initial jobless claims and a $150 million decrease in benefits paid from 2021 to 2022, and a concierge service that assigns re-employment case managers to individuals immediately after they file for unemployment benefits, are bringing potential employees and employers together sooner. Iowa Workforce Development has also implemented a veteran portal to connect employers specifically to veterans seeking employment, and a new focus on registered apprenticeship programs brought nearly 10,000 apprentices to the workforce last year, tops in the United States. And another program is providing grants for community colleges to train more commercial driver’s license (CDL) applicants, helping to address the growing shortage of commercial truck drivers nationwide. “Our number one goal is to help remove barriers,” Ms. Anderson said. “So whether that is through any of these programs that you see here, or maybe you have one and you think we can pilot something, we’re willing to explore and investigate what that might look like. Please know that we're here to help serve you as employers to get access to the talent pipeline that we have. We're here to be a partner to economic developers across the state.” Cedar Rapids mayor Tiffany O’Donnell and Marion Mayor Nick AbouAssaly also spoke at the event, and both highlighted the workforce recruitment campaign announced in August, which is bringing area government officials and the CRMEA together in a collaborative effort to address the region’s workforce shortage. Ms. O’Donnell said that to achieve its objectives, the workforce shortage initiative must bring business leaders and elected officials together. “We can set targets and goals and do everything in our power to be successful, but at the end of the day. It's people that drive it,” she said. “And specifically, the people in this room are going to help us in terms of a growth initiative as it relates to population. “I can't say enough about the culture and attitude of this council and city manager and team,” she added. “We are a pro-business city. We are a ‘find a way to say yes’ city. But we cannot be pro-business and bring people here unless we're ready to answer the question about talent.” One of the main goals of the new workforce shortage initiative, she said, is to set a measurable target for workforce recruitment, then implement specific initiatives to achieve that goal. While the Cedar Rapids metro area may be seeing slow growth – an estimated 1% last year – it’s still nearly twice the Iowa average, Ms. O’Donnell said. From 2016 to 2020, more people moved to the area from out of state than moved away from Cedar Rapids. And projections indicate the area’s population will increase by 7% by 2030, as compared to 3% for the state overall. “We're in a really unique position, and we need to seize the day,” she said. “We have a great story to tell, and we're going to continue to hone that story.” The first phase of the workforce recruitment initiative, expected to take about nine months, will focus on gathering data from the metro area, describing national workforce trends, assessing local market strengths and identifying key markets to target with workforce recruitment efforts. The second phase will then focus on implementation strategies and marketing campaigns guided by the data and research collected. Ms. O’Donnell noted the city is also working to update the downtown vision plan and is continuing to focus on growth in the southwest quadrant, where businesses have invested more than $1 billion on new development in the past 10 years, resulting in 1,000 new jobs and the retention of 2,000 others. “This initiative really is a first of its kind,” she said. “ It's exciting to build a sustainable, thriving community through workforce growth by using data driven marketing, a collaborative approach and your energy. We hope to create a model that's going to improve our communities’ position and attract more residents and businesses. In his remarks, Mr. AbouAssaly noted that workforce shortage issues aren’t new to the area. “As a young professional in the 1990s, I recall our largest employers being worried back then about the availability of talent and the ability to attract and retain talent,” he said. “These issues have persisted and only seem to have been exacerbated by the pandemic. Today employers of all sizes and all sectors are feeling the impact.” When officials from the Marion Economic Development Corporation (MEDCO) talk to business leaders about their biggest issues, he said, “it’s not the state's income tax structure. It's not real estate taxes. It’s workforce, workforce, workforce. As our local businesses grow, they have increasing needs for talent. But they're worried about the availability of workers to fill those positions. We live in a region with so much potential. Our challenge is to continue growing the talent pipeline we need to realize that potential and growing our economy at the same time that the state's population growth is stagnant.” Marion’s approach to community development has involved developing several amenities, from the new public library and YMCA to the Uptown streetscape projects and the Lowe Park amphitheater. Such initiatives, he said, are critical to recruit new residents to a state largely lacking in appealing weather patterns and natural features. “We live in different times today,” he said. “Unlike when I entered the workforce, people today are not as willing to sacrifice the quality of life for the sake of their job. More than more people work to live rather than live for work. For many people, especially younger workers, their job is what they do between weekends. What they do outside of work is just as important to them as satisfaction with their career. So availability of good jobs and good education alone is not enough. People today decide where they want to live, and then they look for a job. We have to all get that, and we all have to be invested in making the improvements necessary to meet those needs.” The new amenities have helped Marion become one of the state’s fastest-growing communities, Mr. AbouAssaly said. “In Marion, we've shown that aesthetics are important,” he said. “Community curb appeal is important, perception is important. A variety of recreation, cultural and entertainment opportunities is important for people to choose us as a region. They need to be able to envision themselves living here and having opportunities they desire for themselves and their families. We all have to be invested in making this region more attractive for people to locate here. The best marketing plan in the world won't work unless we all do the work to create a place people are proud to call their home. We all need to believe that we have a story worth telling. And we all need to work together to tell that story and show people why this is truly an awesome place where people of all backgrounds are welcome and can find amazing opportunities for work and for life.”