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The region of Central Wisconsin is defined as
the area encompassing Marathon, Portage, and Wood counties. Fourth quarter Central Wisconsin economic activity demonstrated a great
deal of improvement over that of last year. Table 2
presents the unemployment rates of the counties, region, state, and nation. Portage County
unemployment remained unchanged from last year at 8.0%. However, this represents
the first time since first quarter of 1986 that the unemployment rate has not
risen. In Marathon
County, the unemployment
rate has decreased from 8.1% in 1985 to 7.7% in 1986. Wood County
showed a similar decline of 4 tenths of a percentage point falling to 7.5% in
December. Overall, the region experienced an improvement in the unemployment
rate as it fell from 8.0% to 7.7%. Although the state and the nation exhibited
lower rates than the region, 7.1 % and 6.3 % respectively, the historical
context for the region shows marked improvement over double-digit unemployment
rates during the dark days of fourth quarter 1982.
Table 3 gives data on the numbers of individuals employed
in the counties, region, state, and nation. It appears that the improved
conditions forecasted during third quarter have materialized. Employment levels
have increased in all coverage areas. In Portage County, employment has expanded by 600
positions or 2.2% from last year. This represents a reversal of the trend
started earlier this year. Marathon registered
a 900 position expansion or a 1.8% increase in employment. This is the fourth
quarter in a row that payrolls have expanded in Marathon County.
Wood County experienced excellent employment
expansion in posting a robust growth rate of 6.6%. The actual number of
increased positions amounted to 2100. The region saw 3600 more people, than in
fourth quarter 1985 on payrolls, thus indicating a 3.3% rate of growth. The
employment growth rate of the region exceeded that of the state and nation, i.e.
2.4% and 2.3%.
A
detailed examination of the improved employment situation by industrial sector
is made possible by the data presented in Table 4.
Manufacturing employment increased by 2.4%. Moreover, durable goods
manufacturing rose 5.8%. Trade and government also experienced strong job
expansion of 7.8% and 6.5%. Construction employment remained stagnant. Services
was the only sector that recorded a decrease from fourth quarter 1985. Even here
the decrease was only .6%. Overall, nonfarm employment improved by 3200
positions or 3.3%. Thus, the region experienced a healthy expansion in
employment.
Table 5 examines key
Central Wisconsin industries. All sectors demonstrated improvement
or stability. Paper products, and lumber and wood products continued an
expansion that commenced over one year ago. Forecasts for these industries are
optimistic for 1987, attributable to the declining dollar and the continued
increase in demand for wood and paper domestically and worldwide. Food
processing employment remained unchanged from last year. Finance, insurance, and
real estate employment has stabilized at 7.2 thousand, after experiencing
difficulties over the past year. The general outlook for the insurance component
of the sector is brighter than it has been in the past several years, with a
greater potential for profitability.
Table 6 presents the opinions of regional business
executives with regard to economic conditions. Recent changes in national and
local economic conditions are not viewed as favorably as last quarter. The
response level still falls within the "no change is foreseen" category. However,
assessments of expected local and industry changes were considerably more
optimistic than last quarter. Overall responses can be classified in the
"somewhat better conditions are to be expected" range.
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