State looks to encourage youth to stick around after graduation.
While Iowa’s economy continues to grow and unemployment is well below the national average, young people aren’t always sold on the state.
Data from surveys conducted by Iowa’s regent universities reveal that roughly half the seniors at the University of Iowa and Iowa State University plan to leave the state once they graduate—an issue known as brain drain.
Iowa has faced underwhelming population growth for decades now, leading to fears that businesses won’t have the skilled young employees they need for growth in the future.
But NFIB Iowa State Director Kristin Failor says leaders are aware of the importance of the issue.
“The state is taking steps in the right direction,” she says. “They are focusing more on the fact that not everyone needs to go to a four-year college to contribute, which is helping fill those high-skilled worker jobs.”
Businesses are also trying to encourage students to stay. Ankeny-based Accumold offers a scholarship for students at Des Moines Area Community College. Accumold pays for some of their tuition, and the students work a part-time job at Accumold, with the chance to earn a full-time position upon completion of their certificate.
“We believe this type of program is the best mix of education and real-world application,” says Aaron Johnson, vice president of marketing and customer strategy at Accumold. “Accumold gets the benefit of a well-trained team member, and the student gets a scholarship, a part-time job, real-world experience and a plan for what’s to come after graduation.”
Other efforts to reduce brain drain include the state’s implementation of tax incentive programs for high-tech industries that choose to conduct business in Iowa. Initiatives such as the Innovation Fund Tax Credit Program, which benefits businesses in fields like advanced manufacturing and information technology, are seeking to make Iowa a more appealing place to do business, and thus inspire ambitious young people to remain in the state.
Failor also says there has been talk of tuition reimbursement for the development of more partnerships between businesses and community colleges, like the collaboration between Accumold and DMACC.
“We do feel that a program like ours could be a good model for others to follow,” Johnson says. “Even still, we could certainly use more applicants and we’re connecting with who we can to not only promote new hires for Accumold, but DMACC, and the overall benefits of living and working in Iowa.”
