The economy of the Stevens Point/Plover area grew during third quarter 1992. The total number of people employed has increased, and the industrial sector employment numbers were above last year's level. Furthermore, the rising unemployment rate can be largely attributed to a surge in the reported number of people entering the labor force over the course of the year.
 

     Retailers remain moderately confident about the local economy and report that store sales and traffic are ahead of last year's pace. Help wanted advertising remains stable when compared to September of 1991, and residential and nonresidential construction were quite strong for our area. The data for local family distress suggest a growing deterioration for a segment of our area residents. However, besides economic factors, one should also consider the role that changing norms and social conditions play in this equation. Also, the immigration of minority groups into the local area will surely impact this situation until they are assimilated.
 

     Portage County industrial employment grew by 500 from a year ago rising from 30800 to 30580, a two percent increase (Table 7). The important manufacturing sector grew by 400 positions and trade matched that by also posting a 400 person increase. Services and construction payrolls, however, contracted by 240 and 60 respectively. Government employment was unchanged at 5300. Thus, in the aggregate, local businesses were able to grow and provide more jobs to our area people.
 

     Retailer confidence in the Stevens Point area remains at approximately the same level as last quarter (Table 8). This panel of local merchants explained that sales and store traffic were moderately higher than the year before for the same time period. Further, they expect sales and store traffic to improve next quarter. The level of optimism was slightly lower than in last quarter's report.
 

     Help wanted advertising in Table 9 shows that there are 2.1 jobs being advertised for every one job advertised in the base year of 1980. From last year the index grew by 3.4 percent. Likewise the nation's help wanted advertising index grew for the first time in quite a while, 2.2 percent. It appears that advertising by firms has remained fairly stable over the past twelve months. In the case of Portage County, that is a positive sign as the amount of advertising remains well above the base year. However, in the case of the U.S., the stability means that the index is stuck at a level that was established some twenty‑five years ago.
 

     Table 10 displays public assistance in Portage County on a monthly average basis. New applications were down from 161 to 142, a drop of 11.8 percent from last year. Over the past five years this number has fluctuated between a high of 161 and a low of 118 for the third quarter time period. With regard to total applications on a monthly average basis, an increase from 1335 to 1825 or 36.7 percent was recorded. Total applications on a monthly average basis have totaled 1700 in third quarter 1987, 1629 in third quarter 1988, 1621 in third quarter 1989, 1344 in third quarter 1990, 1335 in third quarter 1991, and 1825 for the current third quarter. Thus, a downward trend has been reversed in this quarter's data.
 

     Table 11 presents unemployment claim data on a monthly average basis. New claims fled rose from 39 to 44 or 12.8 percent. Over the six reporting periods from 1987 to 1992, new claims for third quarter were 27, 23, 24, 30, 39 and 44 respectively. Thus, an upward movement in this number is evident over the past four years. When it comes to the five year trend in total third quarter unemployment claims we have 62 in 1987, 61 in 1988, 76 in 1989, 78 in 1990, 89 in 1991, and 125 in 1992, indicating a substantial increase in the number of third quarter unemployment claims filed, particularly during the most recent reporting period.
 

     On a brighter note, the residential construction scene continues to boom year after year in the Stevens Point/Plover area (Table 12). Every category except the number of residential alteration permits issued was well above last year's figures. Residential permits issued, the value of new residential construction, the number of units, and the estimated value of residential alterations rose by 42, 44, 16, and 21 percent respectively. Low interest rates, the availability of land, and a sound local economy are all playing a role in shaping the residential construction scene.
 

     Nonresidential construction, as presented in Table 13, had a very good year. The number of permits was 10 with an estimated value of $2397.2 thousand. Thus, a significant addition to the Stevens Point area capital stocks has taken place during third quarter 1992.
 

     Table 14 gives the financial statistics for the Portage County area. This sample of local institutions for third quarter 1992 shows that bank deposits fell from $327.9 to $321.2 million or a drop of 2.0 percent. Not since 1987 have deposits been lower than the corresponding period of the previous year. One possible explanation is the transfer of funds previously held in certificates of deposit by households to other forms of investment. This trend has been noted at the national level. Bank lending in the area was robust, rising from $248.5 to $259.9 million. This represents an almost five percent increase. Even this number probably understates the amount of actual lending in the area. To the extent that banks sell loans in the secondary market in order to replenish their capacity to make local loans, we would expect the amount of actual lending to be higher than reported on their balance sheets.