Much of Iwagi's population finds employment in the ship building industry. A number of international companies build their ships at facilities in the Seto region, including Iwagi. Periodically, company heads and other dignitaries are invited to witness the spectacle that comes with the launching of a completed vessel. Streamers and sirens make it a sight to behold.
The other major money earner for Iwagi village is agriculture, most notably mikan (manderin oranges) and lemon farming. The fishing industry is also important to the island's economy.