The size and composition of the labor force can have an effect on the vitality of an economy. In Central Wisconsin the labor force has been growing. As employers increase their demand for workers to meet their needs, the supply and composition of the available work force will change.

As employment increases the number of people available to satisfy future demand is dependent on the population available. In the recent past a growing population has been able to meet the increasing employment needs of the area. In the future the composition of the labor force, as reflected in the age of the population, will be changing. Industry will have to deal with this challenging situation. An examination of significant historical trends and patterns of county labor force and employment totals follows:

In 1980, the Central Wisconsin area - Wood, Portage, and Marathon Counties, had a labor force of 121,000. In 1988 it had grown to 133,900 - a 10.6 percent growth. The labor force is defined as those individuals who are either working or actively seeking work, thus the labor force grows as the number of people working increases and the number of people unemployed who are looking for work increases. Total employment for central Wisconsin from 1980 to 1988 has grown from 111,700 to 127,100 - a 13.8 percent increase.

Portage County

The Portage County labor force has increased from 1980 to 1988 growing from a total of 31,000 in 1980 to 32,400 in 1982. In 1985 it decreased to 30,400 and rebounded out of the recession to 33,100 in 1988. Employment mirrored the labor force totals, beginning at 28,600 in 1980, increasing to 28,700 in 1982, declining to 28,000 in 1985 and recovering to 31,500 in 1988. The labor force increased 6.8 percent from 1980 - 1988 while employment increased 10.1 percent.

Wood County

The Wood County labor force has shown an increase of 11.4 percent from 1980 to 1988, increasing from 35,000 to 39,000. Total employment has increased 13.6 percent rising from 32,300 to 36,700. Wood and Portage Counties had similar labor force growth patterns during the recession. The labor force and employment increased until 1982, declined from 1982 to 1985 and began recovery in 1986.

Marathon County

Marathon County labor force and employment have shown a pattern of overall steady growth from 1980 - 1988. Starting with a total of 55,000 in 1980 the labor force has increased to 61,800 in 1988, a 12.4 percent increase. Total employment has risen from 50,800 in 1980 to 58,900 in 1988, a 15.9 percent increase. The labor force did expand during the recession as more people, primarily second income wage earners, tried to find jobs as employment was dropping. But as employment began to increase from 1983 to 1984, the labor force decreased as secondary wage earners left the labor force. As area employment dramatically increased from 1986 to 1988 the labor force expanded once again.

Demographic Factors

Labor force availability in the future will be dependent on the population of the area. Projections for Central Wisconsin prepared by the Demographic Services Center, DOA, in cooperation with the applied population laboratory of the University of Wisconsin - Madison, show that the Central Wisconsin population will grow 12.4 percent from between the years 1980 and 2000. Portage County will experience the largest growth, 23.6 percent, followed by Wood County with 11.9 percent and Marathon County with 6.9 percent. Wisconsin as a whole is expected to experience 7.3 percent growth. During this twenty year span, the Central Wisconsin population will increase by nearly 30,000.

 

TABLE 1

 

Population Estimates

Of interest and importance to area employers will be the aging of the labor force in Central Wisconsin. From 1980 to the year 2000, the age mix of the population in Central Wisconsin will change dramatically. The population estimates for those between the ages of 15 and 29 will drop 19.6 percent from 1980 to 2000, from 70,365 to 56,586. There will be a 47.5 percent increase in the number of people between the ages of 30 and 44, from 43,380 to 63,982. The population segment between the ages of 4559 will have the largest percentage increase, 50.3 percent from 32,456 to 48,790. The aging of the "baby boomers" is the primary cause of the increases in the older age groups. The decrease in the number of younger workers in due to declining birth rates. The increases in the number of individuals between the ages of 30 and 59 will be beneficial, as these age groups are the most productive in the work force and are also often the highest paid as well. The numerical decline in the number of people 15-29 years old may create shortages in those industries that normally employ the younger worker who also traditionally works at a lower wage. There may be a great deal of competition for the younger worker by Central Wisconsin employers by the year 2000.