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Full text of "Metropolitan Coalition Economic Impact Analysis"

Iowa's Metropolitan County & 
Metropolitan City Economies in 2010 



Dave Swenson 
Department of Economics 
Iowa State University 
January 2012 

Introduction 

This is an evaluation of the size and major characteristics of Iowa's metropolitan city economies. Two 
levels of analysis are employed. National economic data are typically organized at the county level. 
Accordingly, the first step in this assessment involves determining the total economic activity 
attributable to Iowa's 10 core metropolitan counties. 1 

Iowa's core metropolitan counties in this analysis are Black Hawk, Dallas, Dubuque, Johnson, Linn, Polk, 
Pottawattamie, Scott, Story, and Woodbury. 

The second level of analysis involves imputing the county level findings to the metropolitan cities. 
Nationally collected economic data are not well-organized at the community level. To translate county 
level data to the metropolitan cities, Zip Code Business Patterns data were obtained from the U.S. 
Census Bureau. That data set allowed the compilation of an estimate of all payroll employment, payroll, 
and business establishments within the zip codes that served Iowa's metropolitan cities for 2009. That 
compilation, along with separately obtained data on total population and total taxable retail sales for 
the metropolitan cities and the core counties, was used to apportion the county level findings to the 
metropolitan cities in instances where city data were unknown. 

Iowa's metropolitan cities are Ames, Cedar Rapids, Council Bluffs, Davenport, Des Moines, Dubuque, 
Iowa City, Sioux City, Waterloo, and West Des Moines. 

The primary size-of-the-economy data source for this evaluation is the 2010 input-output data set for 
Iowa's metropolitan counties obtained from MIG, Inc. 2 That data set allows for an estimate of the total 

1 In this case, a core metropolitan county is the county within which all or a substantial portion of the actual 
metropolitan city resides. There are 10 metropolitan cities in Iowa, cities with an urbanized population of 50,000 
or more. The most recently designated metro, West Des Moines, is located in both Polk County and Dallas 
County. Thus, Dallas County, for this study, is treated as a core metropolitan county. In all, there are 20 counties 
in Iowa classified as either metropolitan core counties or metropolitan dependent counties because large fractions 
of their workforces rely on employment in nearby metropolitan cities. 

2 MIG, Inc. is a private firm that has produced county, state, and national input-output accounts for decades, and it 
is the major source of input-output data utilized by university and government researchers. ISU has used MIG, Inc., 
data for the past 25 years to construct input-output accounts and to conduct economic impact studies. The MIG, 
INC., data development process relies heavily on a wide array of existing secondary data compiled primarily by the 



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number of jobs, labor incomes, and value added (or gross domestic product) located within Iowa's core 
metropolitan counties. Jobs include all full and part time jobs of wage and salary workers and 
proprietors. As employed persons can have more than one job, there are always more jobs in an 
economy than employed persons. Labor income is composed of the wages, salaries, and benefits 
received by employees plus proprietors' payments to themselves for the management of their 
businesses. Value Added is composed of labor income, returns to investors, and indirect taxes on 
business production and operations. Nationally, value added and gross domestic product (GDP) are 
equal; therefore, the calculation of value added for our metropolitan core counties is an estimate of 
metropolitan county contributions to state and national GDP. 

Additional analysis relies on U.S. Census data on population and businesses along with Quarterly Census 
of Employment and Wages data compiled by the U.S. Bureau of Labor Statistics. Separately, Census 
data on commuting into the metropolitan communities was obtained from U.S. Census's Employment 
Dynamics Data program. Finally, fiscal 2010/2011 Iowa Department of Revenue data on taxable retail 
sales and services were compiled for the metropolitan counties and for the metropolitan cities. 

Jobs, Labor Income, and Value Added (GDP) 
Metropolitan Core Counties 

Table 1 lists the individual core metropolitan county jobs, labor income, and value added (GDP) results. 
There were 1,055,774 full and part time jobs in Iowa's metropolitan core counties in 2010 who earned a 
total of $50.75 billion in labor incomes, and collectively produced $79,463 billion in value added (GDP). 

Table 1 



Estimated Jobs, Labor Income, and GDP in Iowa's Core Metropolitan Counties in 2010 





Jobs 


Labor Income 


Value Added (GDP) 


Black Hawk 


89,559 


4,009,100,318 


6,186,261,685 


Dallas 


46,334 


2,319,518,343 


3,831,618,422 


Dubuque 


66,752 


2,838,719,779 


4,345,178,670 


Johnson 


98,512 


4,472,601,732 


6,600,157,016 


Linn 


149,635 


7,469,529,711 


12,830,252,416 


Polk 


332,002 


17,861,379,773 


27,878,293,531 


Pottawattamie 


49,124 


1,884,134,663 


3,095,707,509 


Scott 


106,032 


4,743,779,821 


7,170,487,398 


Story 


55,478 


2,514,959,675 


3,523,859,492 


Woodbury 


62,344 


2,636,419,742 


4,001,053,242 


Metro Counties 


1,055,774 


50,750,143,557 


79,462,869,381 


State of Iowa 


1,956,661 


$97,491,186,797 


$136,762,952,001 



Source: MIG, Inc., 2010 data for Iowa counties, and Department of Economics, Iowa State University 



Bureau of Labor Statistics and by the Bureau of Economic Analysis to provide an estimate of industrial activity 
across several pertinent measures, in this case at the county level, at very high levels of industrial and economic 
component detail. 



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Figure 1 illustrates their respective shares of state totals. Iowa's metropolitan core counties accounted 
for 54 percent of the state's 1.957 million jobs, 60 percent of its $97.5 billion in labor income, and 58 
percent of its 136.76 billion in value added (GDP). 3 

Figure 1 



Core Metropolitan County Shares of State 
Totals, 2010 




Jobs Labor Income Value Added (GDP) 



Table 2 shows the distributions of jobs, labor incomes, and value added (GDP) for all metropolitan core 
counties. Service sector jobs account for 560,930 of the jobs, 53 percent of the total, while agriculture 
and mining jobs combined are only 1.6 percent. Wholesale and retail trade constitutes the second 
largest group followed by federal, state, and local government employment. 



3 Modeled total statewide value added (GDP) (the denominator) is lower than official U.S. estimates as the 
modeling data account for just labor income when compiling Iowa government sector value added and not the full 
cost of government spending and investment by those institutions in the state of Iowa. 



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Table 2 



Estimated Jobs, Labor Income, and GDP by Major Industrial Sector for Iowa's 
Core Metropolitan Counties in 2010 





Jobs 


Labor Income 


Value Added (GDP) 


Total 


1,055,774 


$50,750,143,557 


$79,462,869,381 


Agriculture 


16,056 


631,033,781 


907,907,897 


Mining 


1,149 


52,447,782 


121,202,237 


Construction 


48,893 


2,548,405,100 


3,046,583,547 


Manufacturing 


87,601 


6,467,279,221 


10,761,991,723 


Transp., Information, & Utilities 


38,316 


2,231,662,614 


3,923,460,634 


Trade 


155,240 


5,975,670,178 


9,119,072,606 


Service 


560,930 


24,360,713,206 


42,090,970,134 


Government 


147,589 


8,482,931,674 


9,491,680,603 



Source: MIG, Inc., 2010 data for Iowa counties, and Department of Economics, Iowa State University 



Figure 2 reveals the concentration of the state's jobs in the metropolitan core counties. While they have 
54 percent of all state jobs, they account for 62 percent of service jobs, and 55 percent of both 
government and trade jobs. As would be expected, their shares of agricultural and mining jobs are 
significantly lower than the overall average. Some readers might be surprised to find that a full 43 
percent of all manufacturing jobs are in Iowa's metropolitan core counties. 



Figure 2 



Core Metropolitan County Shares of State Job Totals, 2010 




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Metropolitan Cities 

Table 3 lists jobs, labor income, and value added (GDP) for Iowa's 10 metropolitan cities. In all, they 
contained 702,231 jobs, $33.6 billion in labor income, and $52.76 billion in value added (GDP) in 2010. 



Table 3 



Estimated Jobs, Labor Income, and GDP in Iowa's Metropolitan Cities in 2010 





Jobs 


Labor Income 


Value Added (GDP) 


Ames 


40,693 


1,839,854,094 


2,599,555,329 


Cedar Rapids 


104,185 


5,222,040,630 


8,974,406,625 


Council Bluffs 


39,090 


1,486,417,031 


2,447,902,554 


Davenport 


75,269 


3,375,627,678 


5,101,647,781 


Des Moines 


159,199 


8,561,124,041 


13,369,796,432 


Dubuque 


51,744 


2,228,346,295 


3,386,641,181 


Iowa City 


48,503 


2,209,025,485 


3,252,093,687 


Sioux City 


53,699 


2,282,470,522 


3,469,420,370 


Waterloo 


57,162 


2,565,064,022 


3,955,221,969 


West Des Moines 


72,686 


3,828,333,145 


6,201,236,054 


All Metro Cities 


702,231 


33,598,302,943 


52,757,921,981 


State of Iowa 


1,956,661 


$ 97,491,186,797 


$136,762,952,001 



Source: MIG, Inc., 2010 data for Iowa counties, and Department of Economics, Iowa State University 



Figure 3 displays the metropolitan city shares of these key variables. They house 36 percent of the 
state's jobs, 40 percent of its labor incomes, and 39 percent of its value added (GDP). 



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Figure 3 



Metropolitan City Shares of State Totals, 2010 




Jobs Labor Income Value Added (GDP) 



Table 4 shows the distribution of jobs, labor income, and value added (GDP) by major industry group. As 
with the counties, the service sector accounts for the plurality of jobs, followed by trade, and 
government. In this estimation, agriculture and mining are very small components of employment. 4 

Table 4 



Estimated Jobs, Labor Income, and GDP by Major Industrial Sector for Iowa's Metropolitan Cities in 2010 





Jobs 


Labor Income 


Value Added (GDP) 


Total 


702,231 


$33,598,302,943 


$52,757,921,981 


Agriculture 


316 


12,831,243 


18,722,085 


Mining 


390 


17,268,723 


41,038,247 


Construction 


33,691 


1,760,097,263 


2,103,385,381 


Manufacturing 


61,314 


4,535,291,393 


7,514,713,480 


Transp., Information, & Utilities 


26,268 


1,538,002,447 


2,760,211,759 


Trade 


107,449 


4,148,161,897 


6,343,882,685 


Service 


380,761 


16,328,079,049 


28,090,513,051 


Government 


92,358 


5,271,402,170 


5,904,177,378 



Source: MIG, Inc., 2010 data for Iowa counties, and Department of Economics, Iowa State University 



4 Agricultural employment was apportioned by calculating the share of agricultural land and agricultural buildings 
taxable valuations within the metropolitan cities as a percentage of the counties' totals. Mining (primarily gravel 
and sand) values were estimated using one-half of the factor used to apportion all other non-agricultural 
industries. 



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Figure 4 shows the statewide concentration of jobs in metropolitan cities by major industrial group. A 
full 42 percent of service sector jobs and 38 percent of all trade jobs are found in the state's 
metropolitan cities. The estimation process determined that 30 percent of the state's manufacturing 
jobs were located in the state's largest cities, but only 9 percent of mining jobs, and a mere .3 percent of 
all agricultural-related employment. 



Figure 4 



Iowa Metropolitan City Shares of State Job Totals, 2010 



Transp., Information, & Utilities 
Manufacturing 
Mining 
Agriculture 



Construction 



Government 



Service 



Trade 



9% 



30% 



34% 



35% 



35% 



38% 



42% 



0.3% 



Total J 



36% 



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Other Measures of Economic Importance 



Retail Sales 

Table 5 displays metropolitan county and metropolitan city taxable retail and service sales for fiscal 
2011. Iowa's core metropolitan counties accounted for $21.1 billion (64 percent) of the state's $32.9 
billion in sales. Its cities accounted for $15.41 billion (47 percent of the state total). 



Table 5 

Fiscal 2011 Taxable Retail and Services Sales 





Taxable Sales 




Taxable Sales 


Black Hawk 


1,710,560,724 


Ames 


733,291,102 


Dallas 


946,448,054 


Cedar Rapids 


2,862,052,345 


Dubuque 


1,162,499,417 


Council Bluffs 


905,082,718 


Johnson 


1,587,451,852 


Davenport 


1,929,768,329 


Linn 


3,425,263,882 


Des Moines 


3,195,128,388 


Polk 


6,563,580,934 


Dubuque 


1,014,284,468 


Pottawattamie 


997,225,688 


Iowa City 


741,407,021 


Scott 


2,379,338,801 


Sioux City 


1,371,700,292 


Story 


857,329,183 


Waterloo 


1,112,230,001 


Woodbury 


1,450,964,146 


West Des Moines 


1,541,230,798 


Metropolitan Core Counties 


21,080,662,681 


Metropolitan City 


15,406,175,462 


State of Iowa 


$ 32,904,016,683 


State of Iowa 


$ 32,904,016,683 



Source: Iowa Department of Revenue and the Department of Economics, ISU 



In-Commuting 

Table 6 demonstrates the importance of the metropolitan core counties and the metropolitan cities as 
locations of employment. A full 41 percent of the jobs in Iowa's core metropolitan counties are staffed 
by persons living outside of those counties. Dallas County had the highest fraction at 72 percent (owing 
significantly to its proximity to the large Polk County labor force), and Dubuque County had the lowest 
at 34 percent. 

Among the metropolitan cities, 62 percent of jobs are filled by non-residents of the cities. The highest 
fraction was West Des Moines at 84 percent, and the lowest share of out-of-city workers was Sioux City 
at 46 percent. 



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Table 6 



Percentage of Payroll Employment Filled by In-Commuters, 2009 





Percent from 
Non-Resident 

VV Ul IS. CI j 




Percent from 
Non-Resident 

VV Ul IS. CI o 


Black Hawk 


42% 


Ames 


63% 


Dallas 


72% 


Cedar Rapids 


59% 


Dubuque 


34% 


Council Bluffs 


62% 


Johnson 


45% 


Davenport 


63% 


Linn 


37% 


Des Moines 


62% 


Polk 


37% 


Dubuque 


50% 


Pottawattamie 


50% 


Iowa City 


65% 


Scott 


45% 


Sioux City 


46% 


Story 


45% 


Waterloo 


64% 


Woodbury 


38% 


West Des Moines 


84% 


Metropolitan Core Counties 


41% 


Metropolitan Cities 


62% 



Source: Local Employment Dynamics, U.S. Census Bureau. 



Conclusion 

Figure 5 compares the populations of the metropolitan core counties and the metropolitan cities to 
their respective shares of economic variables measured in this report. It is clearly evident that the 
overall economic importance of Iowa's metropolitan areas exceeds their demographic strengths. Core 
urban economies depend heavily on an external labor supply, and a substantial portion of the labor 
incomes that are generated within the metropolitan economies are exported to suburban and exurban 
areas. 



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Figure 5 



Metropolitan Core County and Metropolitan City Shares of 
State Totals in 2010 




■ Population 

■ Jobs 

■ Labor Income 

■ Value Added 

■ FY 2010/2011 Taxable Sales 



Metropolitan Core Counties Metropolitan Cities 



Primary Data Sources 

Iowa input-output model. Department of Economics, Iowa State University. 
MIG, Inc., State of Iowa county level input-output data set, 2010. 
Quarterly Census of Employment and Wages, U.S. Bureau of Labor Statistics 
Zip Code Business Patterns, U.S. Bureau of the Census. 

Iowa Department of Management, City and County Taxable Valuations, January 2010. 

Taxable Retail Sales, Iowa Department of Revenue; the Iowa Department of Economics, Iowa State 
University. 

Local Employment Dynamics, U.S. Bureau of the Census. 



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