What’s Iowa’s average hourly pay? The state ranks among the lowest in the US for wages – The Des Moines Register

What’s Iowa’s average hourly pay? The state ranks among the lowest in the US for wages – The Des Moines Register

 

Report on Labor Market Conditions and Sustainable Development Goals

Executive Summary

An analysis of May 2025 data from the U.S. Bureau of Labor Statistics reveals significant challenges for the state of Iowa in achieving key Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities). Iowa’s average hourly wage is the lowest in the Midwest and the seventh lowest in the nation, indicating a substantial gap in providing decent work. Furthermore, a slight increase in the state’s unemployment rate, coupled with vast income disparities when compared to higher-earning states, underscores the pressing need for policies aimed at fostering inclusive economic growth and reducing inequality, in line with SDG 1 (No Poverty).

Analysis of Wages and Decent Work (SDG 8)

Iowa’s Labor Market Performance

The state’s progress towards SDG 8, which calls for promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all, is challenged by current wage levels. The data indicates:

  • Average Hourly Earnings: $30.38
  • Average Weekly Hours: 33.9
  • Average Annual Salary: Approximately $53,553.76

This places Iowa’s workers among the lowest earners nationally, directly impacting the “decent work” component of SDG 8. Low wages can impede access to a decent standard of living, contributing to economic precarity and hindering progress towards SDG 1 (No Poverty).

Income Disparities and Reduced Inequalities (SDG 10)

Regional Midwest Comparison

The goal of reducing inequality (SDG 10) is highlighted by the significant wage gap between Iowa and its neighboring states. Iowa’s average hourly wage is lower than all other states in the Midwest, demonstrating a clear regional disparity.

  1. Minnesota: $39.26
  2. Illinois: $35.04
  3. Wisconsin: $34.07
  4. Nebraska: $32.49
  5. Missouri: $32.48
  6. South Dakota: $31.14
  7. Iowa: $30.38

National Income Inequality

The national data further illustrates the scale of economic inequality across the United States. The disparity between the highest and lowest-earning regions presents a major obstacle to achieving SDG 10. The highest average hourly wages are concentrated in a few states, with Washington D.C. earning $52.97 per hour.

Top-earning states include:

  • Massachusetts: $42.21
  • Washington: $41.99
  • California: $40.69
  • Minnesota: $39.26
  • Colorado: $39.02

Employment Stability and Economic Growth (SDG 8)

Unemployment Rate Trends

Target 8.5 of the SDGs aims for full and productive employment. Recent data indicates a minor setback for Iowa in this area. Between April and May 2025, Iowa was one of only three states to experience an increase in its unemployment rate, rising from 3.5% to 3.6%. While this rate remains below the national average of 4.1% (as of June), any upward trend is a concern for achieving stable and inclusive economic growth.

SDGs Addressed in the Article

SDG 8: Decent Work and Economic Growth

  • The article directly addresses economic conditions and employment by focusing on average hourly earnings, weekly salaries, and unemployment rates in Iowa and across the United States. It discusses the quality of work in terms of pay, highlighting that “Iowa residents are among the lowest hourly earners in the country.” This connects to the goal of promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

SDG 10: Reduced Inequalities

  • The article highlights significant economic disparities among different states within the U.S. It explicitly compares Iowa’s low average hourly pay ($30.38) to that of other Midwestern states and the highest-earning areas like Washington, D.C. ($52.97). This focus on the unequal distribution of income on a geographical basis directly relates to the goal of reducing inequality within and among countries.

Specific Targets Identified

Target 8.5: Achieve full and productive employment and decent work for all

  • This target is central to the article, which revolves around employment statistics and the quality of work as measured by wages. The text provides data on the “average hourly earnings,” “average weekly earnings,” and the “unemployment rate” for Iowa and other states. The discussion of Iowa’s wages being the “seventh lowest in the country” directly pertains to the concept of “decent work.”

Target 10.1: Progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average

  • The article’s focus on Iowa as one of the lowest-earning states speaks to the economic status of populations at the lower end of the national income scale. By detailing that “Iowa’s average hourly pay is lower than all other Midwestern states,” the article provides data relevant to understanding the income levels of a specific segment of the population, which is a prerequisite for tracking progress toward this target.

Indicators Mentioned or Implied

Indicator 8.5.1: Average hourly earnings of employees

  • The article is built around this specific indicator. It explicitly states the average hourly earnings for Iowa as “$30.38 per hour” and provides a comparative list for other states, such as Minnesota ($39.26) and Washington D.C. ($52.97). This data is sourced directly from the U.S. Bureau of Labor Statistics.

Indicator 8.5.2: Unemployment rate

  • This indicator is directly mentioned and quantified in the article. It reports that “Iowa’s rate rose from 3.5% to 3.6%” and notes that the national unemployment rate “was 4.1% in June.” This provides a clear measure of employment levels, which is crucial for tracking progress towards Target 8.5.

Indicator 10.1.1: Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population

  • While the article does not show growth rates over time, it provides a snapshot of income per capita (via average hourly and yearly salaries) for one of the lowest-earning states. The figure for Iowa’s average yearly salary, “$53,553.76,” serves as a proxy indicator for the income of a population group at the lower end of the national spectrum, which is essential data for measuring progress on Target 10.1.

SDGs, Targets, and Indicators Analysis

SDGs Targets Indicators
SDG 8: Decent Work and Economic Growth 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
  • 8.5.1: Average hourly earnings of employees. (The article states Iowa’s average is “$30.38 per hour” and compares it to other states.)
  • 8.5.2: Unemployment rate. (The article states Iowa’s unemployment rate rose to “3.6%” and the U.S. rate was “4.1%.”)
SDG 10: Reduced Inequalities 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average.
  • 10.1.1: Growth rates of household expenditure or income per capita. (The article provides income data for a low-earning state, noting Iowa’s pay is the “seventh lowest in the country,” which serves as a baseline for this indicator.)

Source: desmoinesregister.com