This section of the report focuses directly on the Wausau Area. Information on trends I labor market conditions, retail sales, government assistance to individuals, unemployment aims, construction activity and financial institutions is contained in Tables 7-14.

      Although overall employment is down slightly from a year ago, nonagricultural wage and salary jobs have increased 3.9%. The trade and construction sectors have posted the Iargest percentage gains, 12.1% and 33.3% respectively (Table 7). Manufacturing payrolls are virtually unchanged since last December, while government employment is off 3.1%. As suggested earlier, the discrepancy between Marathon County's overall employment and non-agricultural wage and salary figures cannot be satisfactorily explained at this time. The most likely reasons are the weakening farm sector and statistical problems.

     Retailer confidence in the Wausau area remains buoyant (Table 8). The survey, conducted in early December, indicates that retailers enjoyed a slight improvement in sales over the past six months. Sales expectations for six months hence rose significantly over the September reading. In responding to both questions, retailers were asked to adjust for normal seasonal factors.

     Consistent with Marathon County's 2.9% drop in the unemployment rate, the volume of help wanted advertising rose to 130% of the 1980 level (Table 9). This figure suggests that labor demand has risen in the past year and supports the nonagricultural payroll data which indicates that jobs have increased in the Wausau area. Further evidence of improving labor market conditions can be found in Table 11. Unemployment claims continued their year long slide, recording a 21.6% drop from the fourth quarter 1983 level.

     Public assistance claims processed at the Marathon County Social Services office rose slightly in the fourth quarter, compared to a year earlier (Table 10). However, new applications were down considerably over the same period. The drop in new applications suggests that total claims will ease in the months ahead. This trend is a complete reversal of the second and third quarter findings.

     Table 12 and Table 13 show fourth quarter construction activity in the Wausau area. The measures are based on building permits filed in the City of Wausau and the townships of Weston, Kronenwetter and Rib Mountain. The statistics reveal a mixed picture for recent local construction activity.

     Residential construction permits and the number of housing units declined from the year earlier figure (Table 12). In spite of the drop in activity, the estimated value of new homes rose 13.1%. Similar mixed signals can be detected in residential alteration statistics. Residential construction remained in a holding pattern throughout 1984, as high real mortgage rates and economic growth combined to create a housing market which is neither declining nor expanding. The recent drop in interest rates (mortgages have not been greatly affected yet) may provide the spark needed to spur new construction activity.

     For the first time in 1984, nonresidential construction was on a par with the 1983 measures (Table 13). The estimated value of new construction permits doubled, although the level of activity was low due to seasonal factors. Nonresidential construction plays an important role in the local 1985 outlook.

     Bank deposits and bank loans are slightly higher than the fourth quarter 1984 level (Table 14). Bank loan activity, up only 3.2%, indicates a slowly growing local economy. These figures are based on the balance sheets of the seven largest commercial banks and the largest savings and loan association in the Wausau area.