Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14

     A pall was cast over an otherwise upbeat first quarter economic report by the impending closing of the J.I. Case plant in Schofield. The direct loss of 425 relatively high‑paying jobs will have a substantial impact on the local economy. The indirect or ripple effect will be felt throughout community as local firms that did business with J.I. Case will see a decline in their sales and profits. Further, the employees of J.I. Case will purchase fewer goods and services which, in turn, will hurt other Wausau businesses. The possible closing of the plant, if no buyer is found or other arrangement is reached, has long been a subject of speculation. At one time during the 1970's the operation employed approximately 1500 workers. Unfortunately, Tenneco's restructuring clearly illustrates the interdependence of the area's economy with those of the nation and the world. However, the Wausau area economy will eventually absorb the loss and continue to expand and grow. The area economy is essentially on sound footing and will get through this period of adjustment. 

     Marathon County industrial sector employment, as given in Table 7, increased by 1200 positions or a healthy 2.2 percent from last year. One‑half of the growth can be attributed to the relatively low‑paying retail sector which also employs many part time workers. The 600 person gain in trade represents a 5.0 percent rate of growth. The manufacturing sector gained 3.3 percent adding nearly 500 persons to its payrolls. This relatively high paying sector will be hard pressed to register any net growth in the quarters ahead due to the impending closure of J.I. Case plant. Service sector employment expanded by 1.1 percent while the government payrolls remained unchanged at 6.7 thousand. The only industrial category to decline was construction, where labor rosters contracted from 2.5 thousand to 2.4 thousand.
 

     Unlike the nation, where retail sales were flat during first quarter, local merchants tell the CWERB that store traffic and sales were much above last year's totals for March (Table 8). This group of retailers remains very upbeat about retail activity in the area. The levels of optimism expressed concerning future activity remain at near record levels This may change in the future, given the impending layoffs at a major manufacturer.
 

     The Wausau help wanted advertising index rose sharply from 129 to 185 in a March over comparison (Table 9). This means, in March 1993 there was a 27 percent increase in the number of jobs advertised over March 1992. Another way to interpret the index is to say that there are currently 1.85 jobs being advertised for each one in 1980. The national help wanted advertising index showed signs of a rebound with a 10 percent gain.

     Public assistance claim data improved over the course of the year. Table 10 tells us that new applications fell from 21 to 19 on a monthly average basis, a decline of nearly 9.5 percent. Total caseload also declined, falling from 91 to 80 on a monthly average basis. The contraction was approximately 12.0 percent. It should be noted that sociological as well as economic factors play an important role in influencing these numbers. 

     Unemployment claim data in Table 11 show that initial unemployment claims on a weekly average basis rose from 524 to 609. This increase of 75 in initial unemployment claims represents a 16.2 percent surge. However, total unemployment claims filed continue to reflect a year long downward trend. The contraction amounted to 644 cases, or a decrease of approximately 15.0 percent.

     Residential construction declined from the record totals established last year (Table 12). This does not mean that activity has not been brisk, it has, but it is always difficult to exceed a record period. This year's figures, while very respectable, did not equal last year's very high marks. Perhaps the inclement weather, higher lumber prices, and satiated demand have had a dampening influence. The number and estimated value of new residential permits issued, the number of housing units, and the number and estimated value of residential alteration permits issued were 14, 11, 19, 17, and 18 percent lower, respectively, than last year.

     Table 13 displays this quarter's results for nonresidential construction in the area. This volatile measure can and does fluctuate because of the singular nature of capital investment on the part of businesses and governments. Four permits for new nonresidential construction, with an estimated value of $802 thousand, were issued. Further, 30 nonresidential alteration permits valued at $1564 thousand were issued for the first quarter of 1993. Traditionally first quarter is the least active period of the year owing to weather conditions.

     Financial statistics for the area are presented in Table 14. Bank deposits rose from $696.4 million to $712.5 million in the sample. This rise of 2.3 percent in deposits comes in spite of refinancing activity on the part of households and in the face of a large shift into mutual funds on a nation‑wide basis. This national trend has been widely discussed in the financial press. Bank lending rose by a very substantial amount, $29 million. This expansion in lending represents a robust 5.4 percent growth rate. Even this number is probably understated due to the sale of mortgages in the secondary market.