Department of Workforce Development

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

Madison, Wis. -- Wisconsin’s seasonally-adjusted jobless rate was 3.5 per cent in mid-November, based on preliminary data released today by the State Department of Workforce Development.

That compared to a rate of 3.4 per cent a month earlier and matched the year-earlier unemployment rate, said Bruce C. Hagen, the agency’s Deputy Secretary.  It also was up for the second month in a row, from 3.2 per cent in September.

Hagen said the latest monthly increase was too small to be statistically significant.

Some rise in the rate in the last quarter of the year had been anticipated because of Wisconsin’s continuing tight labor market, financial problems in other parts of the world, and the unusual weather patterns, he added.

"Perhaps with all of those developments, the news is that the rate did not go even higher and that the labor force still is growing," he said.

Hagen said the agency now was projecting an average state jobless rate of 3.4 per cent for the year.  That still would be lower than the 3.7 per cent recorded in 1997, as well as the lowest since 1969’s 3.3 per cent.  The lowest on record was 2.7 per cent in 1956.

"While the latest monthly rate was the highest thus far this year, it’s at that level only marginally, and still ties for the lowest on record for the month since 1966," he said. "Wisconsin’s seasonally-adjusted unemployment rate also has changed little in the last five months, moving in a narrow range between 3.2 and 3.5 per cent."

Seasonally-adjusted unemployment rates in the state thus far this year have ranged from 2.4 per cent in April, the lowest on record for any month ever, to the latest rate.   Rates of 3.4 per cent were recorded in both July and October.

November rates of 3.5 per cent also were recorded in 1997, 1996 and 1968.

Hagen also said the number of those employed or looking for work in the state – the so-called "available" labor force – was almost unchanged over the month, down just 1,200 to 2,963,700.  That was a smaller-than-normal decline for the time of year, resulting in an increase when seasonally adjusted.

A loss of 8,800 over the month in the number of persons employed also was about normal for the time of year, Hagen added.  That left the total before seasonal adjustment at 2,871,300, also up over the year by a stronger-than-normal 20,700 persons.

The number of payroll jobs – also called nonfarm wage and salary employment – rose by 9,100 over the month, with all of the larger sectors showing actual or relative (seasonal) gains over the month and the year.

While Construction and Manufacturing recorded losses totalling 1,500 jobs over the month, both were smaller-than-normal declines for the month and translated into seasonal gains.  Weather was likely a major contributing factor to the relative construction employment improvement, Hagen said.

Over-the-year job gains were posted by Services, up 15,300; Trade, up 12,000; Construction, up 7,100; Government, up 5,500; and Manufacturing, up 1,600.  The overall gain was 46,900 jobs for the period.

Job gains over the year in the group were the most in percentage terms in Construction, up 6.2 per cent.  Nationally, construction jobs also gained the highest percentage of any major industry group, with growth of 5.3 per cent.

Hagen said the over-the-year gains of a relatively-small 22,500 in the number of persons working and the relatively robust growth of about 46,000 in payroll jobs may indicate some weakness in the state’s agricultural employment. "On the other hand, it may just indicate the two measures do not always move in lock step," he said.

He noted recent concerns expressed by Gov. Tommy Thompson about "ruinous prices" for Wisconsin’s hog farmers, now at their lowest point in four decades.   There are 4,400 farms where hogs are raised in what is a $194-million a year industry in the state.

Seasonally-adjusted jobless rates were up over the month in 8 of the state’s 11 largest urban areas in November, with half of the 8 also above year-earlier levels.   Rates ranged from 1.6 (in Madison) to 4.2 per cent (in Janesville-Beloit and Racine), compared to 1.6 to 4.1 per cent a month earlier.

Madison had the lowest adjusted rate among the 11 in November.  Its rate the previous month was the fifth lowest of the 384 metropolitan areas in the nation.   Only data before seasonal adjustment is used by the federal government for that comparison, with Madison’s rate at 1.3 per cent.

The Milwaukee-Waukesha November rate was 3.6 per cent, up from 3.4 per cent in October and 3.3 per cent a year earlier.

The rate for a 12^th area, Duluth-Minnesota, remained unchanged over the month at 3.2 per cent in November.  Only unadjusted data is available for that area from the Minnesota Department of Economic Security and is not directly comparable to seasonally-adjusted rates in Wisconsin.

Hagen also said: