DES MOINES, IOWA (January 12, 2026) — Today, the Philadelphia Federal Reserve released new data showing Iowa’s economy has dropped to fiftieth in the nation — coming in dead-last among all states for economic growth.
The Philadelphia Federal Reserve’s State Coincident Index, which tracks economic growth using job growth, hours worked in manufacturing, unemployment, and inflation-adjusted wages, shows Iowa falling behind every other state across the board.
“This new report confirms Iowans’ fears: Not only is our economy in poor standing, but it’s completely fallen off a cliff,” said candidate for governor Rob Sand.
“For the last ten years, one-party rule and powerful insiders in Des Moines have failed our state, and now Iowans are being left behind: jobs are disappearing, costs are too high, and wages aren’t keeping up, all while our leaders dig us into a deeper hole. Iowa needs a leader who will stop digging and get to work to fix what’s broken and turn our economy around.”
This report is just the latest in a series of bad rankings and outlooks Iowa has received recently:
- A recent analysis from Moody’s Analytics has labeled Iowa as one of 22 states either in or at high risk of a recession.
- Iowa currently ranks 48th in the nation for personal income growth.
- Iowa has the worst state economy in the country, according to a WalletHub report that looked at economic activity, overall health, and innovation potential.
- CNBC’s 2025 “Top States for Business” report shows Iowa dropping fourteen spots in business friendliness, falling from 33rd to 39th in overall economic ranking, and from 27th to 41st in workforce ranking.
