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The
Central Wisconsin region maintained its pattern of uninterrupted growth
during 3rd quarter 1989. However, it appears that the region's growth has slowed
somewhat from the rates established over the past several years. In general,
employment is at relatively high levels but this quarter's expansion was modest.
Further, the unemployment rate, while historically very low, has been on the
rise for the past several quarters giving rise to some concern. Although key
industry growth is at relatively high or even record levels, several sectors are
lagging in performance. It would be unrealistic to expect a region to grow
indefinitely at a brisk rate because of the inherent growth constraints imposed
by demand and supply factors. Therefore, only time will tell if this represents
a real slowdown, as is the case with the nation, or merely a pause in the
general upward trend that has dominated over the past several years.
The unemployment rate in
Central Wisconsin rose from 3.7
to 4.1 percent. This is the second consecutive quarter that the unemployment
rate has risen above the previous year's mark. Only in Wood County was the rate
lower than a year ago. Historically these rates are quite good for the counties,
however they have been rising. (Table 2)
Total employment in the three
counties during 3rd quarter has continued the long-term trend of growth. The
employment level in
Central Wisconsin is now at an all‑time high. Marathon, Wood, and Portage
Counties added 1900, 1100, and 600 jobs respectively. These gains outpaced the
smaller growth of Wisconsin and the United States. (Table 3)
Nonfarm employment grew by 1.8
percent or 2000 positions since last year. (Table 4) There
were nearly 115,000 people employed in nonfarm activities during 3rd quarter
1989. The manufacturing, services, and construction sectors posted all‑time
highs regardless of time of year. Services paced the expansion by posting a very
large gain of 1600. Trade and government employment were lower by 100 and 700
jobs respectively. The decline in trade employment can be explained by the
underestimation of
Portage County trade employment.
Key industry employment is listed in
Table 5. The backbone industries of the regional economy
grew by approximately 600 positions or 2.2 percent. The paper products and food
processing industries established record levels of employment for this time of
year. Food processing added nearly 600 people to its payrolls while paper
products expanded by 200 positions. Lumber and wood products remained unchanged
from a year ago while the finance, insurance, and real estate sector declined by
about 200 positions.
Regional business persons believe
that economic matters at the national and local levels have not changed to any
significant degree. (Table 6) When surveyed as to their
views on the economic future of the nation, the local area, and their particular
industries they expressed the opinion that matters would remain unchanged at
national and local levels. However, they felt that their respective industries
would fare somewhat better in the months ahead. This was a rather significant
departure from the situation in June 1989, when they were much more neutral in
their assessments. |
