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In general the Central Wisconsin economy is significantly healthier than those
of the state and nation. This is most notable because the slump in national
economic activity has existed for such a long time. However, one should consider
that while the problems at the national level have been manifesting themselves
since late summer 1990, this dip in economic activity has been and continues to
be far less severe in magnitude than in past recessions. With this in mind, and
also remembering that the recession has been focused in certain geographical
pockets throughout the county, one can better understand how the regional
economy has avoided the worst effects of the slowdown.
Unemployment rates in Central Wisconsin increased from the unusually low levels
of a year ago (Table 2). All three counties exhibited this
trend. Portage
and Wood Counties posted identical 4.5 percent seasonally unadjusted
unemployment rates for the month of December. The Marathon County rate increased
to 5.7 percent. For the region, the labor force weighted seasonally unadjusted
average unemployment rate rose from 4.1 percent to a still respectably low 5.1
percent. Wisconsin posted an even 5.0 percent rate while the nation came ever
closer to the 7.0 percent mark with a figure of 6.8 percent.
Total employment in the three county area expanded
(Table 3). The increase emanated from
Portage
and Marathon Counties where total employment rose by 8.0 percent and 0.8 percent
respectively. Wood County fell by approximately 3.3 percent from Fourth Quarter
1990. Overall, Central Wisconsin
employment grew by 1800 jobs or 1.4 percent from last year, not bad when we
consider that the state and nation experienced declines of ‑0.8 percent and ‑0.6
percent respectively in total employment.
Portage
County
led the expansion in activity with the creation of 2500 new jobs and with
Marathon County contributing 500. The contraction in
Wood County
employment among other things is related to the near completion of several major
building projects.
Table 4 shows the major industrial classifications and
their respective employment levels for fourth quarter. Every sector, except for
trade, posted a gain from 1990. Manufacturing grew by 700 positions to 31.3
thousand. Likewise services, construction, and government employment grew by
2200, 700, and 2000 positions. Trade employment was substantially lower from
last year with a reported decline of 3400. An expectedly weak Christmas season
resulted in fewer seasonal hires and a tendency on the part of retailers to lay
off workers earlier than in past seasons. Both factors played an important role
in explaining the decline in trade employment. Overall, nonfarm industrial
employment grew by a respectable 2200 people or 1.8 percent from fourth quarter
1990.
Very good news for the region is presented in Table 5.
Employment in our key exporting industries grew by 1700 jobs or 6.2 percent over
the past twelve months. Paper products, food processing , and the finance,
insurance, and real estate sectors posted employment gains of 200, 1200, and 400
respectively. Only lumber and wood products decreased and then only by a scant
100 positions. Given the national malaise, the improvement in these numbers is
of some significance.
The CWERB poll of regional business leaders in Table 6
provides an additional perspective on how the national and regional economies
are performing. When asked about recent changes in the national and local
economies, this panel responded in the most pessimistic manner since the CWERB
began collecting data in late 1983. The poll indicates that this group believes
the local economy not to be as strong as one year ago, but it still remains more
viable than the national economy. Undoubtedly the lingering sluggishness of the
national economy has played a major role in the negative assessment of recent
events. But with regard to the future, most are downright optimistic about the
economic prospects of the country, the local area, and their individual
industries, and predict a turnaround in the very near future. |
