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The
Central Wisconsin economy continued to expand during 4th quarter 1989.
There were many positive events during the quarter. For several industries
record high employment was registered for 4th quarter. However, there were signs
that the regional economy has slowed. For example, total employment increased by
a scant 0.4 percent while the unemployment rate for the area rose from 4.0
percent to 5.4 percent, an increase of approximately 35 percent. Thus we have a
mixed bag of results for 4th quarter. It appears that the well‑documented
slowing taking place at the national level has crept to a small degree into our
region.
The unemployment rates in the three
county area were substantially above those of last year, (Table
2). However, the local marks still compare favorably to all other 4th
quarters of the 1980s. The
Central Wisconsin average
unemployment rate increased from 4.0 percent to 5.4 percent over the past twelve
months. Even though the rate has increased, it remains at a historically
acceptable level. Along with economic events, the severe weather of December may
have played a role in this quarter's results.
Change in total employment from a
year ago was almost nonexistent, (Table 3). All three
counties experienced some difficulty in expanding their payrolls. Only
Marathon County registered a
slight gain, whereas employment in
Portage
and Wood counties was virtually unchanged from December 1988. In sum, the
Central Wisconsin region grew by 0.4 percent or 500 positions when compared to a
year ago. But the 127,600 people employed in December represents an all‑time
high for this time of year. In contrast, Wisconsin employment actually declined
by nearly 2.0 percent.
Employment change by major
industrial sector is presented in Table 4. Manufacturing
posted a gain of 2.5 percent or 700 jobs. Services, trade, and government added
1300, 100, and 800 persons respectively to their payrolls. Only construction was
unchanged. For manufacturing, services, trade, and government, the December
employment figures represent record highs for the 4th quarter. Furthermore, the
overall gain in the region's nonfarm activity increased 3.0 percent or 3,300.
Thus, nonfarm employment growth in the region was noticeably stronger than total
employment growth.
Good news comes from the region's
key industries, (Table 5). All four posted respectable
increases from a year ago. Paper products, food processing, and finance,
insurance, and real estate established all‑time highs for 4th quarter
employment. Employment in these four important sectors climbed from 26.7 to 27.4
thousand or a gain of 2.6 percent. The breakdown for individual industry
employment growth shows food processing with 300; lumber and wood products and
finance, insurance and real estate with 200 each; and paper products with a gain
of 100 positions.
Table 6
presents the opinions of regional business persons on economic conditions. With
regard to recent changes at the national and local levels this group is mildly
optimistic. Similar marks were recorded when asked about expected changes in
national, local and industry conditions. In other words, our panelists feel that
business activity will be slightly better in the months ahead when compared to
the same time a year ago. Thus, even in the face of a slowing national economy,
our panel expresses some degree of confidence. |
