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Remedies are not simple. Companies want to be in Iowa because wages are lower than elsewhere in the nation or region, except South Dakota. But low wages also drive young college graduates out of the state, especially as student debt loads have risen, and they discourage workers from other states from moving to Iowa. Some, like Mr. Tew, accept relatively low wages in exchange for Iowa’s low cost of living. Companies compete on amenities and benefits more than salary, said Craig Jackman, president of Paragon IT Professionals, a recruiter and consultant firm.
Downtown Des Moines, including the East Village neighborhood, above, has seen $2.8 billion in development projects.
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Steven Smith, who runs a small technology company called GCommerce, was not deterred. After starting the company in the New York suburbs, he moved to downtown Des Moines in 2004, and expects to expand to 50 employees by the end of the year, from the mid-30s now. He said the costs of business were less than half what they were in New York, primarily because salaries and real estate prices are lower.
But he said it was difficult to hire people for advanced technical positions. “I plan a certain amount of my time during the week, 5 to 10 hours, recruiting. You’ve got to work at it. They’re not just going to come to you.”
Like many executives here, he has adopted programs to lure recent retirees back to work part time.
To retain staff, he provides stock options, flex time and short Fridays in the summer. And he has had to be flexible on salary. “People who have a real marketable skill, they know they can call their shots,” he said.
Several companies are starting to reach into the high schools, identifying students and promising to pay their community college costs, with the guarantee of a job after graduation. Others are looking to the prison system. Forty employers recently participated in a job fair for about 300 inmates in the downtown convention center.
The community college system is at the center of many efforts to address the jobs surplus. The state and private employers like Wells Fargo and Principal Financial, which are both based in Des Moines, have made $23 million available for students to take courses to prepare them for specific jobs, with promises at the end of tuition reimbursement and positions starting at $30,000 to $40,000 for graduates with a two-year degree.
But programs for the jobs in highest demand, including nurses and welders, have long waiting lists. “Employers come to us, asking, ‘Do you have any graduates coming up in this field?’ ” said Scott Ocken, dean of industry and technology. “A lot of times we have to say, ‘We do, but they’re already hired.’ ”
Robert Anderson, executive chef at the college’s culinary institute, said he had two or three job offers for every student.
For Michael LeVere, 38, a database administrator at Wells Fargo who recently accepted a newly created position at Federal Home Loan Bank, the jobs surplus has been both a balm and a chore. On a recent afternoon, he was struggling to find someone to replace him. The only applicant from Iowa was already working at Wells Fargo.
As for his new job, he said, “If this doesn’t work out, in a year there’ll be opportunities.”
To try to keep young professionals, the government and industries have poured nearly $2.8 billion into development projects in downtown Des Moines, including a new neighborhood of shops and lofts that wears its ambitions in its name: the East Village. On a recent weekend, a few restaurants had hour-plus waits for tables, and bar traffic was brisk. Mr. Tew, who lives and works downtown, said that until a few years ago, the neighborhood emptied after business hours. “Now I’m out till 12:30 or 1 in the morning,” he said. “I don’t leave the downtown area if I can help it.”
China Wong, who runs Salon W in the East Village, said her business was expanding. She recently signed a lease on a bigger space and hired two new stylists. Being out of sync with the national economy has its advantages, she said. “We have extra income for stocks that are undervalued right now,” said Ms. Wong, who previously worked for an investment research firm. “I’ve increased my stock purchases by 20 percent.”
For Jessica Miller, 23, the changes in downtown Des Moines were enough to draw her back after college in Chicago. She found her job — in marketing and advertising at a magazine group — by the city’s extensive networking channels. She said networking added to her sense of security, because she always hears of openings. “We decided at work, we’re not participating in this economic downturn,” she said.
But the state remains a tough sell with young Iowans. For Jessamyn Thomas, 18, a high school senior who hopes to move to Chicago after she graduates from Iowa State University, life in an economic bubble is not enough. “There’s opportunities here,” she said. “But it’s also the same place you’ve lived all your life, and it’s Iowa, so it’s not very exciting.”
Her classmate Tucker Slauson, 17, agreed. “There’s jobs here,” he said, “because everybody leaves.”
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