Wood County and Marshfield along with the state appear to have avoided sliding into a recession during third quarter 1990. The results for this quarter's report were, for the most part, very positive. Examples include the increase in nonfarm total employment and the sharp rise in residential construction. However, it usually takes six to nine months for events in other parts of the country to influence economic activity in the state and region. If the economic woes troubling many other parts of the country last long enough or become severe enough, the effects will eventually be felt in our area. Although economic linkages create a certain level of vulnerability to weaknesses in other parts of the nation, the diversified economies of Wisconsin and Central Wisconsin should allow us to weather a downturn, should it come, better than during the recession of the early 1980s.

     The Marshfield‑Wood County industry sector employment is given in Table 7. Services, trade, and construction payrolls increased by 630, 100, and 170 respectively from last year. Service sector employment reached a record high regardless of the time of year. Manufacturing and government jobs fell slightly each losing 100 positions. Overall, the county gained approximately 700 jobs from last year, a respectable 1.9 percent increase. According to the CWERB Marshfield Employment Index, Marshfield area employment grew by about 2.0 percent.

     Retailer confidence in the Marshfield area remains on the positive side, Table 8. However, the opinions expressed this quarter are not as optimistic as last quarter's responses. As a matter of fact the marks for expected sales and store traffic are the lowest recorded since the CWERB began tracking this indicator in 1986. These relatively low confidence marks correspond to the low consumer sentiments being expressed at the national level. Two major consumer confidence polls report that there is a great deal of consumer anxiety about the future course of the country. The factors most often cited for causing this pessimism are the federal deficit, consumer and corporate debt, fear of a war in the Middle East, and a general weakening of the economy.

     For the second consecutive quarter help wanted advertising in Marshfield exceeded last year's levels. The 249 mark represents a 14.7 percent jump in advertising (Table 9). Meanwhile the national index contracted by about 14 percent. This barometer of labor market conditions suggests some renewed vigor in the local hiring scene. It also demonstrates that the recession that is rolling from one region of the country to the next has not yet reached Central Wisconsin.
 

     Table 10 lists Marshfield area public assistance claims. This along with unemployment data in Table 11 attempts to gauge local area family financial distress. New public assistance claims dropped by about 3.3 percent from an average of 30 per month to 29 and the total caseload fell from 598 per month to 586 for a decrease of 2.0 percent. Table 11 shows that the number of initial unemployment claims, on a weekly average, has increased by about 12 percent while total claims have remained unchanged at an average of 71 per week. In summary, Tables 10 and 11 show relative stability in the level of local family financial distress.

     Unlike many other areas of the country which are experiencing sharp declines in residential construction activity, Marshfield has posted some very strong numbers for third quarter (Table 12). As a matter of record, the overall results are the best ever for this time of year. Residential permits issued, the estimated value of new construction, the number of housing units, the number of residential alteration permits issued and the value of residential alterations were all much above last year's levels. This type of activity is often called a leading economic indicator because it often precedes a broader increase in economic activity. Nonresidential construction data in Table 13 is presented without percentage changes due to the volatile nature of business investment. Business investment was especially strong in the estimated value of new structures where over $2 million worth of construction commenced during third quarter.

     Financial statistics for the local area show that bank deposits rose by approximately $8 million in the CWERB sample for a gain of 3.9 percent
(Table 14). With regard to lending funds, local institutions increased their loan portfolios by about 11.5 percent or nearly $17 million. As both the lending and deposit totals represent all‑time records, it does not appear the so‑called credit crunch is apparent in the Marshfield area.

     Table 15 and Table 16 present economic data on Clark County. Given the close ties between the Marshfield area and Clark County, conditions there may be of interest to businesses and institutions operating in the Marshfield area.

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