The Central Wisconsin region is defined as Portage, Marathon and Wood Counties for the purposes of this report. Tables 2-6 shed some light on the performance of the regional economy. Information is provided on unemployment rates, overall employment, employ­ment by sector and industry and the expectations of regional corporate executives.

     Unemployment rates compare favorably with the state and national figures (Table 2). This is partially due to the seasonal impact of major regional industries. Agriculture, construction and food processing employment tend to peak during the third quarter of the year. The importance of food processing partially explains why the Portage County unem­ployment rate is below that of its neighbors.

     Moving beyond seasonal factors, the region's September unemployment rate of 6.6% suggests that the labor market has soaked up nearly all of the unemployment triggered by the severe 1981-82 recession. Only Marathon County appears to have a sizeable pocket of recession-induced unemployment. The remaining jobless are part of what economists call the natural rate of unemployment. The natural rate consists of individuals between jobs and those thrown out of work by structural changes in the economy. Structural changes are caused by factors such as new technology and foreign competition. Structural unemploy­ment should be a concern of policy makers and community leaders because it often lasts for extended periods and requires retraining.

    Regional job creation continues to be impressive (Table 3). The relative order of employment growth among the three counties has completely reversed from that which prevailed in the initial stages of the current expansion. Marathon County emerged from the recession strongest and earliest of the counties. The relative importance of durable goods manufacturing in the Wausau area causes business cycle swings to be felt in Marathon County before they register in the rest of the region. Now, in a maturing expansion, it is the service oriented economy of Portage County that is displaying the sharpest employment growth rate ill the region. Payrolls in Marathon County grew 3.0% over last September but have actually declined .6% since April of this year.

     The trade and service sectors have replaced manufacturing as the primary engines of growth for the regional economy (Table 4). The expanding retail trade sector has centered around the Wausau area. Construction activity continues to heat up, paced by downtown renovation in Stevens Point. Government employment is up markedly over last September, but this is due to the reporting techniques of the University of Wisconsin-Stevens Point.

     Paper products and lumber continue to pace Central Wisconsin's key industries   (Table 5). The food processing industry, stung by a major layoff in Portage County shows no measurable employment gains. Uncertainty in the insurance industry has slowed employment growth at the region's important financial services firms.

     Executives of Central Wisconsin's major manufacturing companies remain mildly optimistic though signs of slippage are evident (Table 6). An index reading above 50 implies that business leaders are expecting improving economic conditions. The index value for expectations is down slightly in all three categories from the June level and is edging closer to the break even point. An index reading below 50 indicates that regional executives are expecting deteriorating economic conditions.