This section of the report traces economic trends specific to the Wausau area. Informa­tion on labor market conditions, retail sales, government assistance to individuals, un­employment claims, construction activity and financial institutions is contained in Tables 7-14.

     Although employment in Marathon County remained steady in the third quarter, all sectors reported payroll gains over the year earlier level (Table 7). The manufacturing sector shows a modest increase over last September but is down slightly from the June level. The services sector, slowed by the financial services industry, also reports a slight decline from the June level. These two sectors account for nearly 50% of total employment in Marathon County. Payroll reductions in these two sectors clearly signal a slowdown in the Wausau area economy.

     Employment growth in the trade sector has also slowed in recent months, though gains over year earlier figures remain impressive. In terms of percentage increases, the highly volatile construction sector stands out, posting a 40% increase over last September. A point to keep in mind when interpreting the data on this sector is the method of reporting. All employment data collected by the Department of Industry, Labor and Human Relations is obtained from business establishments. Construction contractors may be participating in projects outside of Marathon County, yet employment gains are recorded in the county statistics. Major construction projects now underway in Stevens Point could well have been a factor in the sector's payroll expansion.

     Major retailers in the Wausau area reported a strong third quarter (Table 8).  Retailers registered increases in total sales and store traffic compared to six months earlier.  However, optimism about future conditions is down slightly from the June survey. Retailers expect continued moderate improvement in sales but the index value declined from 67.1 to 59.8. If the index registers above 50, it indicates that retailers expect conditions to improve.

     The volume of help wanted advertising in the Wausau Daily Herald is up significantly over September of 1983 (Table 9). The 1983 reading was still showing the effects of the 1981-82 recession. Although the labor market has ~Iearly improved since last year, the index is down from the June level.

     Tables 10 and 11 provide some of the most encouraging findings of the report. The public assistance caseload and unemployment claims show declines from the September 1983 and June 1984 levels. New applications for public assistance are up over the year earlier level but down 4.8% from the June reading.        

      Tables 12 and 13 have been revised significantly since the second quarter report was released. The figures now include the townships of Weston and Kronenwetter, as well as the city of Wausau. Statistical difficulties prevented the immediate inclusion of Schofield and Rib Mountain but both will eventually be added.

     Table 12 sends mixed signals on the strength of residential construction in the Wausau area. Residential alteration activity which includes remodeling, garage and porch construc­tion, is up significantly over last year. However, new home construction is well below last year's third quarter pace. New permits are off 15.4% and the estimated value of new homes is 12.0% below the year earlier level. Relief could be in sight for home buyers if the October declines in interest rates continue.