Index shows signs of strength in QC economy, yet labor market poses challenges

  • The economy made slow progress in the first quarter of 2022 and shrank in large part due to three factors: spending down inventory, a lower level of exports and most significantly, strong growth in imports. 
  • On a national level, the labor market continued its slow recovery. National payroll employment increased by 1.1% in the first quarter, down slightly from 1.3% growth in Q4 2021. Employment growth slowed more substantially in the QC region, from 1.5% in Q4 2021 to 0.4% this quarter.
  • Unemployment rates demonstrate a growing divergence between national and regional labor market conditions. Rates improved both nationally and regionally in the past two quarters, but rates have fallen more quickly at the national level. National unemployment rates are now below where they were in March 2020, whereas the QC region remains slightly above.
  • The QC's “Return to Normal Index” shows signs of strength in the regional economy. After moving sideways during the fall and early winter, the economy picked up pace in Q1 2022.
  • There are many uncertainties regarding the path of economic expansion. Short-term inflation remains a concern as well as any long-term persistence of inflation.

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Julie Forsythe
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Julie Forsythe
Senior Vice President, Business & Economic Growth
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