It is no local secret that education and healthcare are vital anchors to Johnson County’s economy. In the final quarter of 2025, there were over 22,000 workers employed in the healthcare and social assistance sector and over 18,000 employed in the education sector. Just these two sectors account for almost half (41,000; 47%) of Johnson County’s 87,000 total average monthly employees. With the University of Iowa’s local presence this has long been the industry makeup in Johnson County.
On a nationwide level, though, it has historically been the manufacturing sector driving growth. A recent article from the National League of Cities utilized research from the Urban Institute to show both the change in industry makeup and the importance of universities and hospital systems on local economies. Johnson County and the impacts from the University of Iowa are an exemplary case study to this report’s findings.
The manufacturing sector in the United States accounted for over 30% of jobs in the 1950s and is now down to just 8% in 2026. In contrast, the healthcare and education sectors have jumped from 5% to 18% over the same time period. As the article notes, this long shift in industry makeup emphasizes the importance of universities and educational institutions on today’s local economies.
In Johnson County, the University of Iowa has anchored both the education and healthcare sectors. The University of Iowa has consistently enrolled almost 30,000 students since 2014 and is welcoming some of the largest freshman classes in its institutional history. University of Iowa Health Care is rapidly expanding, with a new location set for Tiffin after the completion of North Liberty’s campus in 2025. UIHC is now the largest employer in the county, employing over 15,000 workers, and is becoming the state’s largest healthcare provider. In 2024, all of Iowa City metropolitan area’s higher education and hospital establishments resulted in an estimated $3.8 billion in GDP and paid $2.8 billion in wages and incomes.
The University of Iowa and University of Iowa Health Care are foundational to Johnson County’s economy and play an important part of what makes our communities strong. Their impact extends well beyond the jobs they provide, attracting new residents, supporting local establishments, and creating opportunities for people across the region. As Johnson County continues to grow, these institutions will remain essential to our community’s long-term economic success.
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