The economy of Central Wisconsin turned in a very solid performance during the first quarter of 1987. Table 2 shows that Portage and Marathon counties experienced substantial declines in their unemployment rates. Portage County unemployment stood at 8.3 percent at the end of March, Marathon County registered a rate of 8.8 percent and the Wood County unemployment rate increased from last year. However, this is due to a rapidly expanding labor force, Le., total employment in Wood County actually rose by 2100 from last year.

     The region, which encompasses these three counties, saw the unemployment rate dip to 8.9 percent, a decline of 4 tenths of one percent from first quarter 1986, but the region still trails the state and nation in terms of unemployment. The unemployment rate for Wisconsin was 7.5 percent at the end of March. For the United States the rate was even lower at 6.9 percent. It should be noted, however, that the unemployment rate for Central Wisconsin during the first quarter of this year is lower than it has been for a number of years.

     Table 3 displays more encouraging data. Employment levels significantly increased for each county in the region, and also for the state and the nation. Portage County employment now stands at 28.9 thousand, a respectable 3.6 percent rise over last year. Marathon County employment rose by a healthy 6.6 percent, while Wood County experienced a substantial gain of 7.6 percent. Overall, first quarter employment performance of the Central Wisconsin economy can be characterized as being quite strong. The region gained approximately 6.7 thousand jobs since last year. As a matter of record, the 116 thousand employed in first quarter 1987 is the largest number of people working during a comparable time period. Employment growth also was brisk at the state level, Le. Wisconsin employment increased by 4.3 percent. The improvement at the national level was somewhat slower as employment growth was 2.4 percent from last year.

     Table 4 gives nonfarm employment by major industrial sector for Central Wisconsin. The purpose of the table is to provide a detailed examination of the employment situation. Employment expanded in every industry classification. Durable goods manufacturing led the way with 900 positions gained since last year. The 26.4 thousand employed in manufacturing is the highest level ever recorded during a first quarter time period. This is due in part to the mild winter, i.e., seasonal hiring started earlier than usual. For services, trade, construction, and government employment gains were more modest, but still demonstrate growth in the Central Wisconsin economy.  In summary the total number of nonfarm jobs climbed from 99 thousand to 102.2 thousand from last year.

     Key industry employment data are presented in Table 5. These industry payrolls improved in all classifications. The lumber and wood products sector posted an impressive gain of 1000 jobs. Moreover, the food processing and the finance, insurance and real estate categories experienced vigorous employment expansion of 5.9 and 5.5 percent, respectively. The paper products sector grew, but at a very modest 1.1 percent. Thus, the improvement forecasted last quarter is now materializing. Encouragement comes from the revitalization of the finance, insurance and real estate sector after several years of decline. The demand for lumber and wood products should continue to grow. However, over capacity in the paper products industry may place a damper on activity in this sector.