The Wausau area economy continued to struggle through the summer of 1985, but signs of a pick up in economic activity became more pronounced during the quarter. This section of the report focuses on information specific to the Wausau area. Tables 7-14 con­tain data on local labor, retail, construction and financial markets.

     Among the major sectors of the Marathon County economy, only manufacturing shows larger payrolls than one year ago (Table 7). Yet even this sector reported no employment gains during the summer months. Nor can job creation be found in other major sectors of the local economy on a year-to-year basis. Declines in financial services employ­ment have depressed the service sector, while trade employment has stabilized. The relatively small construction sector shows the largest percentage drop (14.3%).

     Moving beyond employment data, measures of the local economy's performance become considerably more encouraging. Wausau area retailers reported increasing sales in the September survey (Table 8). Improving conditions are also anticipated for the months ahead. However, a mild drop in the expected sales index compared to the June survey was reported.

     Help wanted advertising in the Wausau Daily Herald showed improvement over last September (Table 9). The index inched up 7.6 points over last year and now stands slightly above the 1980 base year. Gains over last year are comparable to those for the nation as a whole and should translate into mild improvement in the local labor market.

     Public assistance claim data sent mixed signals during the third quarter (Table 10). The total case load at the Wausau office dropped 4.2% compared to last year and stands 15.8% below the second quarter figure. After falling dramatically in the second quarter, new applications for assistance shot back up. This rise in new applications will translate into an expanded caseload during the fourth quarter.

     Both initial and total unemployment claims posted declines during the third quarter (Table 11). The decline in initial claims represents a reversal of the pattern established in the first six months of the year. A drop off in initial unemployment claims foreshadows improving labor market conditions. .

     Lower interest rates and a state supported financing program combined to trigger a surge in residential construction activity (Table 12). The large percentage gains, though encouraging, are misleading. The third quarter 1984 level of activity was extremely depressed when seasonal factors are considered. When compared to the second quarter 1985 figures, residential construction shows much more modest improvement. On this comparison basis, permits rose 7.7% and the value of new construction inched up .8%.

     Nonresidential construction activity also picked up during the summer months (Table 13). Two major projects combined to add $5 million to the value of the Wausau area capital stock. This increased activity has yet to translate into additional local construction jobs.

     Financial statistics for the area also point to improving economic conditions (Table 14). Bank deposits rose 2.9% during the third quarter and now stand 13.5% above the year earlier level. Bank loans are also up solidly, reflecting the gains in construction activity.