Iowa already has 43.7% more layoffs this year than in the entirety of 2023

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The state of Iowa experienced a substantial increase in layoffs in 2024 compared to the previous year. As of July 2024, 5112 workers had been laid off, compared to 3,555 workers throughout the entirety of 2023. This marks a significant increase of 1,557 layoffs, translating to a 43.7% rise in job losses.

Percent Increase

The 43.7% increase in layoffs is a concerning trend, indicating a challenging economic environment for Iowa’s workforce. Several factors may contribute to this rise, including changes in market demand, company restructuring, and broader economic conditions affecting both local and global markets.

Largest Layoffs in 2024

1. John Deere

John Deere laid off 1,599 workers in Iowa this year. USDA projects a significant drop in net farm income, down 25.5% in 2024, following a 16% decline in 2023. Because of this decline in farmers' income, John Deere anticipates a 20% decline in new equipment sales in 2024 because farmers are now more likely to buy used equipment, which might decrease demand even further. John Deere has also been shifting production of some of its equipment to Mexico to reduce cost.

2. Tyson food

Back in March, Tyson Foods announced the closure of its pork plant in Perry, Iowa, which took effect in June, impacting over 1,276 jobs. The Perry plant closure is part of Tyson Foods' broader operational adjustments, including several plant closures nationwide to align with customer demand and improve operational efficiency. The shutdown was attributed to the decline in pork demand, which has been declining since 2019.

3. Smithfield Foods

At the beginning of July, Smithfield Foods announced the closure of its ham boing facility, resulting in 319 layoffs. WH Group, owner of Smithfield Foods, reported first-quarter operating losses of $62 million for U.S. and Mexico pork, an improvement from a $218 million loss the previous year.

The significant rise in layoffs in Iowa in 2024, with a 43.7% increase compared to 2023, highlights the state's workforce's severe economic pressures. If major companies like John Deere, Tyson Foods, and Smithfield Foods can't afford to stay in Iowa, it might be time to look at the broader causes that affect the farming/food production industry.

UPDATE:

An earlier version of this article didn't take into account a layoff by Kinze Manufacturing, which laid off 193 workers.