Professor Peter Orazem was interviewed by Business Record for the story "Persisting labor issues are a factor in Iowa’s negative Q2 GDP, economists say." The story focuses on the factors that may have led to Iowa's negative gross domestic product growth in the second quarter of this year.
Orazem told Business Record that the economy is heading toward, or possibly currently in, recession. “What kept the inflation rate so low over so many years was in part an increase in labor productivity. Even while input prices were going up, we were able to hold back on labor costs because labor was becoming more productive … and that’s not been true during 2022. So on top of everything else we have a decline in labor productivity.”