|
The
Marshfield area economy is experiencing first hand the effect of
the national recession. Fortunately the basic soundness of the
area economy has prevented it from being influenced to same
degree as other parts of the country. On the bright side of
things, total employment in the county is above last year's
record mark and nonresidential construction is quite strong.
However, the totality of this quarter's results suggests the
local economy is going through a somewhat difficult period of
transition where employers and workers alike are being faced
with the effects of a contraction in national demand. To be more
specific, the unemployment rate, while low historically, is on
an upward trend. Public assistance and unemployment claims data
are well above last year's levels. Residential construction and
the rate of expansion in lending and borrowing are lagging the
more impressive pace of a year ago.
Wood
County
employment expanded by 290 jobs or 1.3 percent from twelve
months ago ‑ good news for the area, considering the recession
that is plaguing other regions of the country (Table
7). The service and trade sectors reached all‑time record
levels, 14,170 and 9,100 respectively. Only manufacturing and
construction, two sectors that are very sensitive to business
cycle fluctuations, experienced any decline. The CWERB's
Marshfield Employment Index indicates that employment in the
local area contracted by approximately 0.4 percent. Thus, the
closing down of some local employers has put a damper on this
quarter's employment report.
The
retailer confidence survey in Table 8
shows that local merchants believe that store traffic and sales
this quarter are at about the same level as one year ago. Please
note that the combined readings for the two categories is the
least positive since the CWERB began conducting the poll.
However, this group believes that activity will most definitely
accelerate in the autumn. Consumer spending on retail items has
increased at the national level so it will be interesting to see
if this translates into additional retail sales in the local
area.
For the
second consecutive quarter help wanted advertising is lower than
twelve months ago Table 9. The index
reading of 215 represents a decline of 25 percent from the 286
mark of last June. This measure of local labor market conditions
tells the interested reader that 2.15 jobs are being advertised
for each 1.0 jobs in 1980. But in June 1990 there were
2.86 openings being advertised for each position in 1980. Thus
while the index remains well above the 1980 benchmark, a slight
deterioration in the local labor market is evident.
Further
evidence of a softening of the local economy is presented in
Table 10 and Table 11.
These complimentary indicators of local family financial
distress are consistent this quarter. Both tables show that the
level of distress has risen from last year. For example, new
public assistance claims on a monthly average basis rose from 31
to 40, a 48.4 percent increase. The number of total applications
increased from 582 to 615 per month, up 5.7 percent. More
dramatic changes were seen in the unemployment claim data.
Initial claims on a weekly average basis surged from 37 to 75 or
a 102.7 percent rise. Likewise, total unemployment claims data
jumped upward by 80.0 percent and the number of initial claims
rose from 90 to 162. Clearly the local layoffs that have
occurred due to the closing of a local manufacturer are having
an impact on the local economic situation.
When
compared to second quarter 1990 residential construction in
Marshfield was lower in each and every category (Table
12). The number of permits issued, the estimated value of
new construction, the number of housing units, residential
alteration permits issued, and the estimated value of
residential alterations were significantly below last year's
very robust figures. The number of permits issued declined by
nearly 50 percent, falling from 28 to 15. Similarly the number
of housing units constructed dipped from 37 to 12 when compared
to second quarter 1990. To be sure, economic factors play a role
in this situation, but we should not forget that other variables
like population growth and the quantity and quality of existing
housing stock are also major determinants of construction
activity.
Good
news emanates from the nonresidential construction figures in
Table 13. The totals for this quarter
reveal this to be one of the strongest periods since the CWERB
has tracked the local situation. The number of permits for new
nonresidential construction reached 18 and the estimated total
value was $4,000,000. This uplifting story does not end with new
construction. The number of alteration permits was at a very
respectable 15 with an estimated value of over $1,000,000. Thus,
the local capital stock has or will have a number of sizeable
additions.
Local
financial statistics are presented in Table
14. Bank deposits grew more slowly than in past quarters
when they increased from $217.3 to $219.0 million or by 0.8
percent. When inflation is considered, the real value or
purchasing power of the deposits declined from a year ago.
Likewise, bank lending grew by $3.4 million in this sample for a
very modest 2.1 percent rate of growth. Once again if inflation
is considered, the real value of loans declined over the past
twelve months.
Table 15 and Table 16
present economic data for Clark
County. This rural, primarily agricultural county is an important trade area
for Marshfield business
and its health and well‑being have a direct impact on The local
economy of Marshfield. |
