For approximately the past three years the Wausau area economy has been in an expansive mode. The second quarter of 1989 continues the succession of economically successful quarters. Total and nonfarm employment grew by respectable margins. In particular manufacturing, services, and trade were sources of strength. Further, retailer belief that matters have improved and unemployment claim data both support a positive assessment of the local situation. With a strong paper products industry, and a likely rebound in agriculture, the major concern for the area is the direction of the national economy.

     Historically the regional economy tends to lag events at the national level. However, this does not mean that the eventual influence is weak. To the contrary, the effect can be pronounced.

     Marathon County nonfarm payrolls grew by 2000 positions from a year ago. (Table 7) This represents a very healthy 4.1 percent rate of change. Individual industries experiencing the largest gains were trade, and services. Approximately 700 and 800 persons were added respectively. The manufacturing and construction sectors showed noticeable improvements of 400 and 200 jobs. Furthermore, all four of the previously mentioned sectors have reached all-time record high levels of employment. Only government employment showed any signs of contraction.

     The retailer confidence index gives insight into past and future economic conditions. Table 8 presents the results of the survey of local merchants. This group believes that store traffic and sales are improved over last year's levels. This is consistent with and supports other data in the report which portrays a growing Wausau area economy. Their feelings are equally optimistic with regard to future store sales and traffic.

     Table 9 shows that help wanted advertising has declined by approximately 15 percent from last year. However, when June 1989 is compared to June 1980 it is evident that, over the long term, steady growth has taken place. Thus, the area can expect slower but still respectable payroll expansion. The data at the local level mirrors the national situation. There, too, a slowdown is evident.

     The financial distress of local families continues to lessen. (Tables 10 and 11) Total public assistance claims dropped from 120 to 107, and initial and total unemployment claims fell by 16.4 and 7.3 percent respectively. Only new applications for public assistance increased from 14 to 23. An improved local and regional economy have played an important role in the general overall reduction.

     After a record setting first quarter, residential construction results were somewhat mixed during second quarter. (Table 12) Residential permits issued, the estimated value of new homes, and the estimated value of alterations were lower when contrasted with the historically strong performance of second quarter 1988. On the more positive side, the number of housing units did not fall and residential alteration permits rose by approximately 33 percent.

     The nonresidential construction scene is depicted in Table 13. Activity in this sector can vary a great deal due to the singular nature of business investments.