The Central Wisconsin economy, which is comprised of Portage, Wood, and Marathon Counties, experienced a quantifiable slowdown during the second quarter of 1990. Even though some indicators, taken at face value, were improved over last year's marks, further investigation reveals that the improvements were attributable to undesirable developments, e.g. the decline in the unemployment rate was tempered by the smaller labor force. One of the most important measures of economic performance is total employment growth. For the second quarter in a row, total employment fell in the region. On a more uplifting note, industrial employment in the region managed to post a very respectable 3.6 percent gain. Given the softness in total, and key Central Wisconsin industries employment growth, and the decline in regional business confidence from last quarter, the evidence suggests that the region has experienced some difficulty. This outcome parallels closely the situation prevailing at the national level where the economy appears to be on the brink of recession.
 

     The unemployment rates in the region are much below last year's levels,
Table 2. However, the sharp decline in these rates from a year ago is due more to a contracting labor force than to job growth and economic expansion. The rates now stand at 4.0 percent for Portage and Wood Counties and 3.6 percent for Marathon County. The Central Wisconsin unemployment rate fell 4.8 percent to 3.9 percent. For the record, all three counties on an individual and collective basis have unemployment rates that are at decade low levels for second quarter.
 

     After enjoying a number of years of solid, steady job growth, Central Wisconsin has experience a decline in total employment for the second quarter in a row, Table 3. When June 1990 is compared with June of 1989, all three counties in Central Wisconsin saw employment contraction. For Portage, Wood, and Marathon Counties the decline in total employment was 1100, 900, and 600 respectively. Overall, Central Wisconsin total employment declined by approximately 2.0 percent from last year.

     Table 4 presents industrial employment and paints a more positive picture of regional conditions. Three out of the five major categories registered gains from 1989. Manufacturing, services, and trade added approximately 300, 2300, and 1500 people to their respective payrolls. Only the construction and government sectors experienced declines in employment. In sum, Central Wisconsin gained approximately 3.6 thousand jobs, an increase of 3.3 percent. For many of the industrial sectors employment is at a decade high regardless of the time of year. For example, the manufacturing and service sectors.
 

     Table 5 presents data concerning key Central Wisconsin industries. Paper products and lumber and wood products posted gains of 300 and 500 positions. In contrast to this food processing and finance, insurance, and real estate employment declined by 200 and 300 jobs respectively. Thus, the combined results show that Central Wisconsin employment rose by a scant 1.1 percent or 300 jobs from a year ago. The data suggests some sluggishness in these very important sectors.|
 

     The Business Confidence Index (Table 6) presents the results of CWERB interviews with regional business leaders. With regard to the present situation, these individuals believe that the economic situation at the national and local levels is virtually unchanged when contrasted with the same period a year ago. When asked to forecast the future course of the economy, the majority believed that matters will remain unchanged in the months ahead. However, it should be noted that this regional panel of experts expressed much less optimism about the performance of their particular industries than they did three months ago.