The Iowa Business Council today released its 2026 Competitive Dashboard, an annual nonpartisan review of Iowa’s economic competitiveness. The report this year shares improvements in some economic indicators while also showing ongoing challenges in workforce development, health care access and population growth.

“Ultimately, we want this report to be both a guide and tool for policymakers, businesses and community leaders when pursuing efforts to make Iowa more competitive,” Iowa Business Council President Joe Murphy said at a news conference announcing the report. 

According to the report, Iowa’s gross state product increased to $265.8 billion, a 4.65% gain from the previous year. Median household income also rose to more than $75,000, though Iowa’s national ranking slipped slightly to 34th among states. The state continues to rank among the nation’s leading manufacturing hubs, maintaining its No. 3 ranking in manufacturing value as a share of gross state product.

Labor force participation also improved, rising to 67.5% in November 2025, placing Iowa fifth nationally. However, workforce constraints continue to be a top strategic concern for the IBC, with the council identifying a participation rate of at least 68% as a key benchmark for sustaining economic growth.

Education and workforce development remain a major focus for the council. During the 2024-25 academic year, 36,075 Iowa high school students participated in work-based learning experiences, an increase of more than 11,000 students compared with the previous year. The council said expanded apprenticeship, internship and pre-apprenticeship opportunities will help create a more streamlined pathway into Iowa careers while retaining talent in the state.

On the policy front, Iowa improved its individual income tax competitiveness ranking, moving from 18th to 11th nationally following tax reforms enacted in 2022. However, the state’s corporate tax ranking declined to 25th as other states adopted additional tax changes.

The report also highlights demographic and health care challenges facing the state. Iowa ranks 47th nationally in outmigration of 25- to 29-year-olds with bachelor’s degrees or higher, a trend the council says has long-term economic consequences. Population growth also continues to lag national averages, raising concerns about the state’s future workforce supply.

Health care workforce shortages remain another challenge. Iowa ranks in the bottom half of states for both primary care and mental health providers per 100,000 population, though the state continues to rank in the top third nationally for overall health outcomes.

“A thriving workforce and new opportunities for economic development are best achieved when our people are healthy,” said Gage Kent, chairman and CEO of Kent Worldwide, at the news conference.

The council believes progress across the categories will require a focus on competitive tax policy, workforce initiatives and economic development tools.

“We believe that bipartisan approaches can be formulated for each one of these areas,” Kent said. “By addressing issues such as a competitive tax policy, workforce initiatives and economic development tools, Iowa can become an even more competitive, wealthy state.”

The dashboard has been released annually since 2011.