Quad Cities region experienced economic growth and loss in Q4 2021

Key Takeaways

  • The economy in the fourth quarter of 2021 could be divided into two periods. The economy grew at a rate much higher than the long-term trend in economic growth as it “caught up” with growth lost during the middle of 2020. However, with the arrival of the Omicron variant in late November, some of the behaviors returned that we saw in previous virus surge periods.
  • The labor market has normalized to a great extent. By the end of the fourth quarter, the national economy had recovered nearly all the jobs lost in the spring and summer of 2020. National employment was only 2% below the pre-COVID level. Employment in the Quad Cities MSA is 3% lower than in early 2020. Despite this, the workforce had been a predominant issue prior to the pandemic; all sectors continued to report workforce challenges through Chamber outreach conversations.
  • Many manufacturers are demonstrating very savvy skills in locating raw materials using multiple providers. The challenges come in the form of freight costs, lead times and quantities. If manufacturers could rely on shipping schedules, they would ramp up the workforce to manage demand. If manufacturers ramp up workforce numbers, they may find themselves in a tough spot when raw materials are delayed, and production is at a standstill. Both elements of a thriving ecosystem are challenged, and it will likely take all of 2022 to remedy.  
  • Many non-primary industry Chamber member businesses reported that they have finished 2021 with record numbers.
  • The long-run path of economic growth and inflation continues to rely on coronavirus infection rates and whether supply chain and labor force pressure abate.
  • The Quad Cities Laborshed Workforce Report 2021 was released. Key takeaways include:
    • A laborshed workforce more than 580,000 strong.
    • The top five industries include manufacturing, wholesale/retail, healthcare/social services, education and professional services
    • 70% of those currently unemployed are likely to accept employment.
    • The average commute time is 16 minutes.

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