(DES MOINES) – Citing Iowa’s 17-year low unemployment rate, strength of the state’s pension fund, AAA credit rating and low poverty rate, Iowa has been named the 3rd best-run state in the nation, according to a 24/7 Wall St. analysis. That’s up three spots from No. 6 in 2016.
The study’s authors ranked states using four criteria: 2016 unemployment, pension funded ratio, credit rating and outlook, and poverty.
Here’s how Iowa fared:
· 2016 unemployment: 3.7% (10th lowest)
· Pension funded ratio: 85.1% (13th highest)
· Credit rating and outlook: AAA/stable
· Poverty: 11.8% (18th lowest)
The study said of Iowa:
“Iowa has one of the healthiest job markets in the country. Just 3.7% of the Iowa workforce were unemployed in 2016, the 10th lowest unemployment rate of any state. For the small share of residents looking for a job, Iowa has one of the most generous unemployment insurance systems of any state. Some 40% of unemployed residents in the state receive unemployment benefits, far more than the 27% national rate. Also, the average weekly UI benefit is $398, or 45% of Iowa’s average weekly wage — the fifth highest replacement rate of any state.
“Iowa is also one of the most fiscally responsible states in the country. While across all states, average state government debt amounts to 52.2% of total state tax revenue, Iowa’s debt load amounts to just 26.1% — one of the smallest shares in the country. Additionally, Iowa’s rainy day funds could cover about 10% of the state’s 2018 fiscal year budget, slightly better than the average across all states.”
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