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The first half of 1985 was a
period of minimal economic growth for the
Wisconsin Rapids area economy. The area
employment level remains essentially unchanged from a year ago.
However, there are some signs of improving conditions. This
section of the report focuses on information specific to the
Wisconsin Rapids
area. Data on local labor markets, construction activity and
financial markets are contained in Tables 7-13.
The trade and service sectors continued to provide job
opportunities in the local economy during the second quarter (Table
7). Trade employment rose a solid 7.7%, while service
payrolls expanded 4.2%. The government sector also posted
employment gains over last year. However, reflecting the flat
local economy, manufacturing and construction jobs declined. The
drop in manufacturing jobs mirrors recent national trends. The
Wisconsin Rapids employment index, which adjusts
Wood County payroll data to reflect the structure of the Wisconsin Rapids area
economy, posted a small 1.6% increase over last year.
The volume of help wanted advertising in the Wisconsin Rapids
Daily Tribune is down significantly from a year ago (Table
8). The index, measured in early June, dropped 20.4%. The
decline in labor demand is further evidence of a slowing local
economy.
Public assistance claims processed at the
Wisconsin Rapids
office show promising trends during the second quarter (Table
9). The total number of open cases is down slightly from a
year ago but, more importantly, initial applications fell
sharply. A decline in initial applications should translate into
fewer cases during the coming quarters.
Unemployment claims processed at the
Wisconsin Rapids
district office showed mixed results (Table
10). Total unemployment claims dropped a modest 2.1%,
confirming the conclusion of slow growth in the area economy.
However, new unemployment claims are 18.3% above a year ago.
This disturbing finding suggests that the economic slowdown is
having a direct effect on payrolls.
Falling interest rates have provided a lift for the
Wisconsin Rapids area residential
construction market (Table 11). New
permits and the value of construction recorded increases of
40.0% and 28.7% respectively. Unfortunately these improvements
have not yet translated into gains in construction jobs.
However, residential construction, highly sensitive to credit
conditions, tends to be a leading indicator.
Nonresidential construction in the local economy shows little
change from a year ago (Table 12).
8usiness remodeling and alteration permits rose significantly in
terms of value and number. Permits for new construction
increased slightly but the value of these permits was
significantly less than the second quarter 1984 estimate.
Local financial statistics confirm the earlier conclusion (Table
13). Loan activity is up very modestly over a year ago,
reflecting the slowly growing economy. However, bank deposits,
an indicator of future spending, jumped 8.6%.
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