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Monday, August 31, 1998
Governor
Tommy G. Thompson
Secretary
Linda Stewart

News Media Contact
Michael H. McCoy
608/267-4400
e-mail: mccoymi@dwd.state.wi.us
fax: 608/266-1784

For more information contact:
August Cibarich, 608/266-0522

State's jobless rate rise in July
result of summer worker influx, strike

Madison, Wis. -- A large influx of jobseekers and last month's General Motors strike combined to increase Wisconsin's seasonally-adjusted jobless rate in mid-July, a state agency announced today.

The preliminary rate was 3.4 per cent, up from 3.0 in mid-June, said Bruce Hagen, Deputy Secretary of the Wisconsin Department of Workforce Development.

That still was the lowest rate for any July since seasonal adjustments began in 1960, tying with July rates in 1995 and 1996. It also remained well below the comparable U.S. rate of 4.5 per cent.

"An unemployment rate rise is discouraging when it’s due to layoffs by employers or when they post ‘no help wanted’ signs," Hagen said. "Those certainly were not key factors this time. Employers still are looking for lots of workers in the state, and that should be continuing encouragement to jobseekers."

Hagen said extensive publicity about labor shortages and the resulting large numbers of job openings in the state this summer probably encouraged people to enter or reenter the labor force.

"Normally Wisconsin’s labor force settles back a bit in July after the traditional large expansion in June. This July, however, the labor force expanded instead of contracting.

"While two out of every three additional jobseekers found jobs in July, it takes more time for the labor force to assimilate this kind of influx. As a result, we saw an increase in the jobless rate."

About half of the rise over the month also was due to job losses during the now-ended strike by General Motors workers, he said. Many GM suppliers also lost business during the strike and reduced hours or their work forces. That also helped to explain why the state rate has increased for the third consecutive month.

Hagen said the year-ago jobless rate was 3.8 per cent, and the unemployment rate for 1998 to date is averaging 3.0 per cent. "This is the lowest jobless rate for the first seven months of the year since government began seasonally adjusting the data," he said.

Unemployment rates were up in eight of the state’s 11 largest urban areas and decreased in the others. Still, the jobless rate was down from year-ago levels in 10 of the 11 areas. Janesville-Beloit was the exception, up to 9.8% from July 1997’s 4.1.

The rate for another area -- Duluth-Superior -- is determined by Minnesota state government and was reported at 3.4 per cent in July, or 4,380. Minnesota does not seasonally adjust that data. The number of jobholders was 124,254 in that area.

In addition, he said:

The number of people in jobs increased by more than normal in July, gaining 4,900 over the month after adjustment. For the last 12 months, the monthly gain has averaged 4,300.

A decline in the number of non-farm wage and salary jobs in July -- down 31,100 to almost 2,720,000 -- was mainly the result of the summer school closings and the GM strike and resulting layoffs.

Without the work stoppage, the count actually would have increased slightly in July, Hagen explained. Still, this count is up an average of 4,200 a month over the last year.

Industries showing job strength in July were trade, construction, the finance, insure and real estate sector, and mining. Weakness was seen in durable-goods manufacturing, services, and the transportation and public utilities sector.

Hagen also said the state unemployment rate:

has been below the comparable U.S. rate for 131 months.

rose in July for the first time since 1977, again largely because of the GM strike. In 1977 the rate also was higher, rising to 4.7 per cent in July from 4.5 per cent the month before. The June-July rate increase this year matched the largest on record, in 1970, when it rose to 4.5 per cent.

Madison had the lowest unemployment rate in the U.S. in the most recent month for which comparison is possible (June). Its rate before adjustment was 1.5 per cent that month, or 1.4 per cent seasonally adjusted.

Employment and Labor Force
Household Survey

Unadjusted estimates	July 1998	Previous month	Year ago
Total labor force	3,039,600	3,023,600	2,995,200
Employed	2,938,100	2,927,400	2,884,900
Unemployed	101,500	96,300	110,300
Wis. Unemployment Rate	3.3%	3.2%	3.7%
U.S. Unemployment Rate	4.7%	4.7%	5.0%

Seasonally adjusted	July 1998	Previous month	Year ago
Total labor force	2,973,000	2,954,500	2,927,800
Employed	2,872,100	2,867,200	2,817,800
Unemployed	100,900	87,300	110,100
Wis. Unemployment	3.4%	3.0%	3.8%
U.S. Unemployment	4.5%	4.5%	4.3%

June U.S. rank*	Unemployment % seasonally adjusted	July 1998	Last month	Year ago
	Wisconsin	3.4%	3.0%	3.8%
38th (tie)	Appleton-Oshkosh	2.4%	2.6%	3.1%
58th	Eau Claire	3.0%	2.9%	3.8%
47th	Green Bay	2.6%	2.5%	3.4%
138th	Janesville-Beloit	9.8%	3.5%	4.1%
104th	Kenosha	3.8%	3.2%	4.6%
38th (tie)	La Crosse	2.5%	2.7%	3.0%
1st	Madison	1.6%	1.4%	1.8%
84 (tie)	Milwaukee-Waukesha	3.3%	2.8%	3.9%
120th	Racine	4.2%	3.5%	5.0%
22nd	Sheboygan	2.9%	1.9%	2.6%
84th (tie)	Wausau	3.2%	3.3%	3.6%
* This is the latest available data for the U.S.’s 328 largest metro areas. Urban rankings are NOT seasonally adjusted. Lower is better. Ties are shown only if existing with other Wisconsin urban areas; ties with urban areas in other states are not shown, but are available upon request. Rankings are by the U.S. Labor Department and are based on unadjusted data for the previous month, while the rates shown above for Wisconsin cities are seasonally-adjusted.

Non-Farm Wage & Salary
Employer Survey

	July 1998	June 1998	Year Ago	+/– month	+/– year
NONFARM WAGE & SALARY	2,719,900	2,751,000	2,667,500	-31,100	52,400

MANUFACTURING	622,100	627,200	618,600	-5,100	3,500
DURABLE GOODS .	374,900	383,800	373,400	-8,900	1,500
Lumber and Wood Products	32,800	32,500	32,300	300	500
Furniture and Fixtures	16,900	17,600	17,200	-700	-300
Stone, Clay & Glass Products	11,800	11,600	11,300	200	500
Primary Metal Industries	26,600	26,900	24,600	-300	2,000
Fabricated Metal Products	67,400	67,400	66,300	0	1,100
Nonelectrical Machinery	114,800	116,100	112,900	-1,300	1,900
Electrical Machinery	47,100	47,300	46,800	-200	300
Transportation Equipment .	27,700	34,100	32,100	-6,400	-4,400
Prof., Scient. & Control Instr	18,200	18,600	18,200	-400	0
Miscellaneous Manufacturing	11,700	11,800	11,700	-100	0

NONDURABLE GOODS	247,200	243,400	245,200	3,800	2,000
Food and Kindred Products	70,800	66,200	71,000	4,600	-200
Textile Mill Products	3,000	3,000	3,000	0	0
Apparel & Other Finished Prods.	6,600	6,500	6,400	100	200
Paper and Allied Products .	54,600	54,800	54,800	-200	-200
Printing, Publishing & Allied . ..	56,400	56,100	54,400	300	2,000
Chemicals and Allied Products .	15,000	15,000	14,500	0	500
Rubber & Misc. Plastic Prods..	35,900	36,700	35,800	-800	100
Leather & Leather Products	4,500	4,700	5,000	-200	-500
All Other Nondurable Goods ..	400	400	400	0	0

MINING	2,600	2,500	2,900	100	-300
CONTRACT CONSTRUCTION	125,000	121,800	120,000	3,200	5,000
TRANS, COMM, ELEC, GAS	121,100	125,300	121,000	-4,200	100
TRADE	623,700	623,400	612,000	300	11,700
WHOLESALE TRADE	138,700	138,300	134,800	400	3,900
RETAIL TRADE	485,000	485,100	477,300	-100	7,700
FINANCE, INSURANCE & REAL ESTATE	146,400	145,500	142,000	900	4,400
SERVICES AND MISCELLANEOUS	712,800	711,400	691,100	1,400	21,700

GOVERNMENT	366,200	393,800	359,900	-27,600	6,300
FEDERAL	29,700	29,800	29,700	-100	0
STATE	91,800	92,600	90,000	-800	1,800
LOCAL	244,600	271,400	240,200	-26,800	4,400

PERSONS INVOLVED IN L-M DISPUTES	6,300	400	100	5,900	6,200

Maps of July 1998 Unemployment Rates by County

Unemployment by County July 1998 Not seasonally adjusted
RANK	COUNTY	RATE	LAST RATE	LAST RANK	YEAR AGO RATE	RANK	COUNTY	RATE	LAST RATE	LAST RANK	YEAR AGO RATE

29	ADAMS	3.4%	3.7%	32	4.3%	44	MARATHON	2.9%	3.3%	41	3.2%
3	ASHLAND	6.7%	8.2%	2	6.7%	7	MARINETTE	5.7%	6.0%	6	4.8%
40	BARRON	3.0%	3.6%	34	3.7%	25	MARQUETTE	3.6%	4.4%	19	4.1%
12	BAYFIELD	4.6%	5.7%	8	4.9%	2	MENOMINEE	7.7%	9.9%	1	11.0%
58	BROWN	2.5%	2.8%	59	3.2%	15	MILWAUKEE	4.2%	3.9%	26	4.9%
60	BUFFALO	2.4%	3.1%	45	3.1%	31	MONROE	3.3%	3.4%	39	4.7%

47	BURNETT	2.8%	3.0%	52	3.8%	13	OCONTO	4.2%	5.1%	10	5.1%
62	CALUMET	2.4%	2.8%	58	3.0%	35	ONEIDA	3.1%	3.7%	31	3.5%
51	CHIPPEWA	2.7%	3.0%	51	3.1%	67	OUTAGAMIE	2.3%	2.5%	66	2.8%
14	CLARK	4.2%	5.0%	12	4.8%	66	OZAUKEE	2.3%	2.8%	56	2.3%
32	COLUMBIA	3.2%	3.8%	28	3.8%	36	PEPIN	3.1%	3.5%	35	4.1%
26	CRAWFORD	3.6%	3.8%	29	3.6%	70	PIERCE	2.1%	2.2%	71	3.2%

72	DANE	1.5%	1.5%	72	1.7%	48	POLK	2.7%	3.3%	40	3.3%
54	DODGE	2.6%	2.8%	61	3.3%	30	PORTAGE	3.3%	4.0%	23	4.0%
39	DOOR	3.0%	3.7%	30	3.8%	19	PRICE	3.8%	5.0%	11	4.6%
17	DOUGLAS	4.0%	4.9%	13	4.8%	11	RACINE	4.7%	3.7%	33	5.5%
56	DUNN	2.5%	3.1%	47	2.8%	46	RICHLAND	2.8%	3.2%	44	3.6%
55	EAU CLAIRE	2.5%	3.1%	46	3.3%	1	ROCK	12.3%	3.9%	27	5.2%

5	FLORENCE	6.1%	6.7%	4	6.8%	22	RUSK	3.7%	4.7%	14	6.8%
52	FOND DU LAC	2.7%	2.9%	54	3.2%	63	SAUK	2.4%	2.7%	63	3.0%
4	FOREST	6.2%	6.3%	5	5.8%	18	SAWYER	3.9%	4.7%	16	5.0%
27	GRANT	3.5%	4.6%	17	6.1%	34	SHAWANO	3.1%	3.9%	25	3.9%
16	GREEN	4.2%	3.3%	43	3.7%	42	SHEBOYGAN	3.0%	2.3%	70	2.9%
38	GREEN LAKE	3.0%	4.1%	21	3.8%	71	ST. CROIX	2.0%	2.3%	68	2.4%

64	IOWA	2.4%	2.7%	64	2.8%	50	TAYLOR	2.7%	3.1%	49	4.3%
6	IRON	5.7%	6.7%	3	7.1%	49	TREMPEALEAU	2.7%	3.1%	48	4.2%
43	JACKSON	2.9%	3.4%	38	4.1%	24	VERNON	3.7%	4.0%	24	4.3%
53	JEFFERSON	2.7%	2.6%	65	2.8%	69	VILAS	2.1%	2.7%	62	2.6%
8	JUNEAU	5.3%	5.7%	9	6.5%	41	WALWORTH	3.0%	2.4%	67	3.1%
9	KENOSHA	5.2%	3.5%	37	6.1%	21	WASHBURN	3.8%	4.3%	20	4.8%

37	KEWAUNEE	3.1%	3.3%	42	3.2%	59	WASHINGTON	2.5%	2.8%	60	2.6%
61	LA CROSSE	2.4%	2.8%	57	3.0%	68	WAUKESHA	2.3%	2.3%	69	2.7%
33	LAFAYETTE	3.2%	3.5%	36	3.9%	57	WAUPACA	2.5%	3.0%	50	3.3%
10	LANGLADE	4.9%	5.8%	7	5.0%	20	WAUSHARA	3.8%	4.7%	15	5.3%
28	LINCOLN	3.4%	4.1%	22	4.5%	65	WINNEBAGO	2.3%	2.9%	53	3.0%
45	MANITOWOC	2.9%	2.9%	55	3.1%	23	WOOD	3.7%	4.5%	18	3.9%

Source: Wisconsin Department of Workforce Development