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The
Marshfield
area economy expanded by a modest amount during first quarter 1992. The most
significant evidence for growth comes from the decline in the unemployment rate,
the increase in total employment, and the growth in the Marshfield employment
index. However, there are areas of concern for the local economy. For example,
financial statistics have lagged somewhat and are not representative of a robust
economy. Further, the agricultural sector continues to strain under the current
milk price structure. Employment decline in this sector over the next decade is
almost inevitable, given the financial pressures facing family farms. One third
of Wisconsin's dairy farms will go out of business during the next ten years
according to state agricultural economists.
Table 7 displays nonfarm
employment by industrial sector. Several categories of employment were higher
than the year before. Services and government employment increased by 7.9
percent and 4.5 percent respectively. Manufacturing payrolls were stable
compared to March 1991, remaining unchanged at 10,000. Trade and construction
fell from previous levels established a year earlier, contracting by 100 and 10
jobs respectively. The
Marshfield employment index expanded by 3.2 percent suggesting that local
employment grew by about 3 percent.
Retail activity, an important barometer of local
economic vitality, is reported in Table 8. Local merchants
confide to us that store traffic and sales are moderately better than last year
at this time. Survey participants also indicate that sales and traffic can be
expected to expand at an even faster clip than a year ago.
The help wanted advertising
index reflects local labor market conditions
(Table 9). The index was stable from March 1991 to March
1992, rising by only one point. The index tells us that there are approximately
1.25 jobs being advertised currently for every one job advertised in 1980. The
national help wanted advertising index remains depressed with a reading of 89.
This suggests that only 0.9 jobs are being advertised today for every job
advertised in 1967.
Public assistance claims for
Marshfield on a monthly average
basis are presented in Table 10. The number of new
applications rose from 51 to 71, a 39.2 percent increase. It should be noted,
that because of a change in eligibility requirements, an increased number of
people have been entitled to apply for certain public assistance benefits.
Furthermore, some of the applicants will still not qualify under the rule
changes. Hence, the numbers for this quarter may be inflated to an unknown
extent and overstate the situation. Total caseload is affected in a similar way.
Here we see the number of cases rising from 580 to 789, a 36 percent surge.
The unemployment claims data for the local area
paint a picture of a stable economy. Initial unemployment claims on a weekly
average basis contracted by 10, declining from 86 to 76. In contrast, total
unemployment claims on a weekly average basis rose by 3.0 percent or 5 claims
per week since last year. See Table 11.
Table 12 gives us the results for first quarter
residential construction. The number of permits issued rose from 7 to 9, and the
estimated value of new construction increased from $677 thousand to $728
thousand. In comparison, the number of housing units declined from 10 to 9 and
the number of residential alteration permits issued dropped from 47 to 27. The
dollar value of residential alterations was also down to $126.1 thousand, a
contraction of 54.3 percent from March 1991.
Table 13 shows that,
there was little activity in nonresidential construction. There was only one
minor new project with an estimated value of $250. Eight nonresidential
alteration permits were issued with an estimated value of $454.5 thousand. No
percentage changes are given due to the volatile, irregular nature of this type
of activity.
Financial statistics for the
Marshfield
area are displayed in Table 14. Bank deposits, a measure
of local liquidity and income growth, expanded by $3.2 million or 1.5 percent,
less than the rate of inflation. Bank lending, a measure of local economic
activity, contracted by $6 million from a year ago, or by 3.5 percent. This fact
suggests that consumers and businesses may have paid down a portion of their
debt loads over the course of the year.
Table 15 and
Table 16 present
Clark County economic data. In
sum, this rural county has seen an expansion in employment and a decline in its
unemployment rate from last year. This is good news for local area businesses
because of the economic ties between
Marshfield
and Clark County. |
