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The regional economy
continued to expand during fourth quarter 1987. Overall, 1987 was a very good
year for the three county area. Table 2 shows that the
unemployment rate in Portage and Marathon
counties dipped substantially below last year's levels. An increase in Wood County's
unemployment rate can be traced to plant closings by Preway and Sterling
Engineered Products in Wisconsin Rapids.
For the region, the unemployment rate decreased to 7.0%. However, the
unemployment rate for the region and state were above the national mark for the
first time in two quarters. This is due to the seasonal nature of the state's
job market, i.e. winter conditions.
Table 3 lists total employment figures. Job creation in
Portage
County was modest while Marathon and Wood counties registered identical percentage
gains of 7.5%. Overall, the region saw 7,200 more people employed, a 6.3% rise.
Based on percentage growth, the region expanded at a faster rate than the nation
and state during the last part of 1987.
Table 4 divides employment change into the major nonfarm
classifications. Manufacturing, spurred on by the lower valued dollar, paced the
overall expansion. Employment in manufacturing jumped by 1700 positions.
Services, trade, and construction all registered solid gains. Government
increased by 3.1% from last year, the smallest rise of any sector. In summary,
total nonfarm employment grew by 4800 positions or 4.7% from fourth quarter
1986. Thus, a very respectable peformance was recorded for the region.
Table 5 contains key Central
Wisconsin
industry employment data. The industries represented in this table are vital to
the health and well being of the region's economy. Paper products, a capital
intensive industry, gained 100 positions from last year and the lumber and wood
products industry added 700 people to its payrolls. Food processing and finance,
insurance, and real estate also demonstrated strength by posting gains of 8.3%
and 5.3% respectively. To summarize, key industry employment grew by 1500 jobs
or by 5.7%. As mentioned in the third quarter report, if the region is to
prosper then these basic industries must lead the way. Forecasts predict that
this group should continue to perform well during 1988.
The business confidence index appears in Table 6.
Interviews conducted by the CWERB indicate concern on the part of regional
business executives. This concern focuses on the deterioration of national
economic conditions. This group also perceives local conditions to be
unimproved. This can be viewed positively since the-local economy has been
expanding all year. Finally, this group believes that economic conditions in the
nation, the region, and especially their industries will improve in the near
term.
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