(Radio Iowa) – A former Principal Financial global economist who’s been the chief economist in state government for the past two years says as the recovery picks up steam, there are potential pitfalls ahead.  “What worries me the most is inflation and what’s happening with the Russian invasion of Ukraine and how that’s going to impact food and gas prices. I think that is a real risk ahead, a chance for real headwind when you look at the job market, whether you look at Iowa or nationally.”

That’s Robin Anderson, the state chief economist who leads the research and policy division in the Iowa Department of Revenue. Anderson says the most recent jobs report for January shows Iowa’s manufacturing sector, which had been sluggish before the pandemic, has bounced back.  “Job growth has picked up nicely over the last three months,” Anderson says. “In addition, the number of unemployed dropped as well to 2200 and this happened even as participation increased, suggesting even people reentering the labor force are finding jobs.”

Anderson says the Federal Reserve’s move to slightly increase interest rates probably won’t have much of an impact on the job market.