The Marshfield area economy continued its expansionary trend during second quarter 1989. Total and nonfarm employment in Wood County increased at very respectable rates. Moreover, total employment now stands at a record level of 39,000. Although the unemployment rate is somewhat higher than last year, the impact has been mitigated by an accompanying rise in the total number employed. Further, economic indicators and industry data suggest that the area economy will continue to do well if not derailed by developments outside the region. Another factor to consider is improved weather conditions, which should help bolster the farm situation thus providing a boost to the local economy.

     Nonfarm employment in Wood County continued to expand during second quarter 1989 (Table 7). Manufacturing gained approximately 1000 positions to lead all sectors. This is the highest total since the recession of the early 1980s. Service and government sector employment also added jobs to county payrolls, with gains of 920 and 300 respectively. Construction employment was unchanged while trade registered a small decrease of 200 positions. Overall in Wood County there are 37,910 people employed in nonfarm activities, a 2,020 or 5.6 percent increase from one year ago. The Marshfield Employment Index rose by a substantial 7.7 percent. This means that the CWERB estimates that Marshfield employment has increased by this percentage.

     Retailer sentiment is given in Table 8. Local merchants believe that store traffic and sales are somewhat better than a year ago. This is an important indicator that the economy has grown over the past twelve months. When asked about the future, this group expected sales and store traffic to improve by significant margins. The implication is that the local scene should continue to experience growth in the months ahead.

     Another leading indicator for the local economy is the help wanted advertising index. Job advertising increased by 8.3 percent from a year ago. This is in contrast to the 3 percent drop in advertising for the U.S. Since 1980 there has been a 234 percent increase in the number of jobs being offered through the local newspaper. Thus, the Marshfield area should continue to experience payroll expansion in the months ahead.

     Decreases in public assistance and unemployment claims indicate that fewer individuals and families are experiencing financial distress than one year ago. Total caseload and new applications for public assistance are lower than last year. The total caseload dropped from 678 to 622, and new applications dropped from 29 to 26.  Initial unemployment claims are nearly 18 percent lower and total claims shrank by approximately 19 percent. These measures reflect a growing economy. However, as the numbers suggest, an improving economic situation may never be sufficient to reach all members of society.

     Residential construction is a leading indicator of economic activity (Table 12). The results for second quarter 1989 are lower in all but one category. Residential permits issued, the estimated value of new homes, the number of housing units, and the number of residential alteration permits issued were below last year's levels. Only the estimated value of residential alterations was higher than the earlier period. Higher interest rates and a satiation of local housing demand played a significant role in the results.