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The Central Wisconsin economy
continued to hold its own during the third quarter even in the face of a
worsening national situation. The unemployment rate in the
Central Wisconsin region fell to a historic low for the time of year.
However, overall total employment grew by a scant 0.5 percent. In contrast,
several major industrial sectors displayed a surprising amount of strength.
These sectors were the service and trade classifications. But, regional business
leaders in the area have become rather pessimistic when assessing the future
course of the national and local economies. Thus, a complicated situation exists
here as well as at the national level with a great deal of uncertainty clouding
any forecast.
The unemployment rates for each
of the three Central Wisconsin counties, now hovering around 3.0 percent, fell
from last year's levels, reaching record lows in some instances (Table
2). Full employment is generally said to exist when the unemployment rate
declines to the 5.5 percent to 6.0 percent range. However, the incredibly low
unemployment rates are tempered somewhat in Portage and Wood Counties because of
declines in the civilian labor force. The unemployment marks for Central
Wisconsin and Wisconsin continue to be below the national average suggesting
that the economy here is stronger than in many other parts of the country which
is due in part to our industry mix.
Table 3 gives the
employment statistics for the region, state, and nation. Total employment fell
in Portage County by 400
and by 100 in Wood County while Marathon County registered an increase of
approximately 1100. Given the economic interdependence of our region, it is
sometimes more representative to examine regional economic statistics. Here we
see that for the entire region employment grew by 600 positions or by a sluggish
0.5 percent. In contrast to this situation the state experienced a decline in
total employment while national employment was virtually unchanged. Thus, even though a slow down in the rate of expansion has taken
place in the region, the economic environment at this juncture remains healthier
than in the state and nation.
Regional employment statistics for nonfarm
activities provide another dimension of economic performance,
Table 4. The manufacturing, services, and trade sectors all recorded
significant increases in employment from last year. Only the construction and
government sectors experienced any contraction in employment and difficulties in
reporting of state employment figures in
Portage County may have caused
the government employment statistics to be understated. Services added nearly
1900 to its payrolls, while trade added 2300 to lead all sectors.
Manufacturing, services and
trade reached all‑time highs for third quarter employment. In sum there were 4.7
thousand more workers employed in Central Wisconsin in nonfarm activities than
one year ago, a 4.2 percent gain. This is very good news for the area given the
slowdown nationally.
The employment numbers for key
Central Wisconsin
industries indicate a small but respectable gain in these vitally important
activities (Table 5). The paper products industry reached
an all‑time high regardless of the time of year, when payrolls reached 10.0
thousand in June. Lumber and wood products added 600 workers to reach 5.6
thousand or a gain of 12.0 percent. Food processing and finance, insurance and
real estate each experienced declines in employment of 200. Overall, the key
industries of our area grew by 1.8 percent or about 500 jobs from third quarter
1989.
The business confidence survey taken in
September reflects the growing pessimism surrounding recent and expected changes
in the national and local economies, Table 6. The averages
presented in the table are uniformly the lowest values recorded since the CWERB
began tracking local conditions in 1983. This survey of regional business
leaders corresponds to national sentiments as measured by the Index of Consumer
Expectations. This measure of public perceptions and expectations is at its
lowest level since August of 1982. |
