Wisconsin adds 28,351 private-sector jobs over 12 months

03/20/2014

The pace of hiring in Wisconsin remained little changed in the latest quarterly reporting period, even as manufacturing employment stagnated, construction hiring rose sharply and average paychecks got a welcome boost.

According to data from the U.S. Bureau of Labor Statistics, Wisconsin gained 28,351 private-sector jobs in the 12 months from September 2012 through September 2013 — a 1.2% increase that ranked the state 35th among the 50 states in the pace of job creation during that period.

The job-creation rate and the state's ranking both were virtually unchanged from three months earlier. In the previous count, which covered the 12 months through June 2013, Wisconsin gained private-sector jobs at an identical 1.2% pace and ranked 34th among the 50 states.

Although different regions and industrial sectors of the state moved at different speeds, Wednesday's quarterly jobs report — based on the most comprehensive data available — continued to depict a state that is moving at a familiar subpar but steady tempo.

"That's Wisconsin's pace," which has proved consistent throughout the non-recessionary periods of the past 10 years, said Dale Knapp, director of research at the Wisconsin Taxpayers Alliance, a nonpartisan public policy group in Madison.

In Wednesday's report, Wisconsin continued to trail the national rate of job creation, as it has since June 2011. The United States created private-sector jobs at a rate of 2.1% in the 12-month period through September, not quite double Wisconsin's 1.2% rate, the data show.

Among findings from the latest report:

■Manufacturing, which is the single biggest sector in the Wisconsin economy, lost 748, or 0.2%, of its jobs in the latest 12-month period.

■Leading employment gains in the state, construction sites hired at a brisk rate of 6.8%. In addition, professional and business services posted a healthy 3.1% increase in the 12 months.

■Average weekly wages in the state's private sector, which remain 15% below the national average, grew 3.4% over the 12-month period, outstripping a 1.9% increase nationally. Wisconsin posted the eighth-highest average wage gain.

■Regional differences were just as stark. While Milwaukee County added 5,664 jobs in the period (a 1.4% gain), Eau Claire County lost 1,259 (-2.6%) and Racine County lost 1,027 jobs (-1.6%).

Economists consider Wednesday's job-creation figures, known as the Quarterly Census of Employment and Wages, to be the most credible and accurate available. The quarterly data are based on a census of 96% of the nation's employers in the public and private sectors. That makes the figures far more reliable than monthly jobs data, which are based on a sample of about 3% of employers, leaving monthly estimates prone to large margins of error.

The quarterly report breaks out data for the nation as a whole as well as each of the 50 states. It tracks the economy in rolling 12-month increments, measured every three months.

Most indicators show the four-year economic rebound remains on track, with little fear of backsliding, even if the recovery so far has yet to attain a brisk and consistent cruising altitude.

"When you look back on periods of economic expansion, and take out the big recessions, job growth here of roughly around 1% or a bit more is common," Knapp said.

Steve Waller, an executive for QPS staffing and recruitment agency in Brookfield, sees strong growth in pockets of the state, even if overall hiring is uneven.

For QPS, which specializes in industrial and manufacturing recruitment, the biggest gains lie in the production of cheese, sausage and other made-in-Wisconsin edibles.

Wisconsin's food-processing sector is booming, Waller said. Thanks mainly to demand in the state's food processing plants last year, "we had our best 12 months in our company history," Waller said. "The food industry is on fire. We put more people to work at QPS than we ever have in our 28-year history."

Many of those jobs are in highly automated food processing plants, meaning job candidates often need computer programing and information technology skills, Waller said.

But the same is not true for all Wisconsin factories. For production workers including machinists, welders and tool-and-die makers, only 42% of Wisconsin employers are looking for skilled workers with some form of post-high school education or certification. That compares with over 50% in states including Texas, Pennsylvania and Missouri, according to research from Burning Glass Technologies Inc., a Boston-based labor market analysis firm.

The administration of Gov. Scott Walker focused on the upbeat aspects of Wednesday's jobs report.

"Whether it's actual jobs data, state revenue collections or new business formation, all economic indicators show Wisconsin's private sector is creating jobs and helping our people get back to work," said Reggie Newson, secretary of the state Department of Workforce Development.

The Quarterly Census is widely followed because of its accuracy. Because the quarterly data are comprehensive and time-consuming to compile, they are released with a half-year time lag. In past years, the lagging schedule meant the quarterly data got less attention than monthly numbers.

However, job creation has emerged as a politically charged issue in Wisconsin. And ever since the special gubernatorial recall election in June 2012, when jobs and economic management emerged as central issues, the quarterly report has been closely watched by the state's politicians and economic policy strategists.

Political stakes are particularly high in an election year. Walker is up for re-election in November.

Jobs and the economy have been central to his stint as governor. When he ran for governor four years ago, Walker framed his economic program around a vow that Wisconsin would add 250,000 private-sector jobs by the end of his four-year term.

Given the pace of job creation since he took office, Wisconsin is unlikely to achieve Walker's job-creation goals during his first term. Walker's administration last week announced that the state had added 106,100 private-sector jobs in the first three years of the governor's term.

To hit Walker's target, the state would have needed to sustain a pace of job creation for four years that matched the best years of the 1990s. As Knapp and other economists point out, Quarterly Census numbers in recent years have shown that Wisconsin typically generates private-sector jobs at around 30,000 or fewer per year.

In its news release, Walker's office focused on the absolute number of jobs created, which it said would place Wisconsin 23rd out of the 50 states. Wisconsin ranks 20th in population, however, so its job-creation ranking didn't quite match its size.

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