Jobs are increasing in Wisconsin
10:40 PM 11/25/03
Jason Stein Business reporter

In spite of recent news of job cuts and plant closings around the state, new federal statistics show Wisconsin employers are creating more jobs than they are eliminating. <

Figures from the U.S. Department of Labor show the state finished October with a slight increase in jobs, ending the month at 2,785,900 positions, up 4,300 jobs from October 2002. The increase came in spite of losses in the construction and manufacturing sectors, which together lost almost 25,000 jobs over the last year. <

"It's not a large number, but it is making up for a still-sagging manufacturing sector," Terry Ludeman said of the increase. <

Ludeman, chief of the state Department of Workforce Development's Office of Economic Advisors, said he wasn't surprised by the figures, given the fact that the state has beaten its 2002 job numbers in eight out of 10 months this year. <

"It's surprising to me that people miss that point," Ludeman said. <

Gov. Jim Doyle praised the numbers, pointing out that nearby states such as Michigan, Illinois, Ohio and Minnesota together lost thousands of jobs over the same period. Doyle attributed part of the job gains to the decision by his office and the Republican-controlled Legislature not to raise corporate, sales or income taxes in the most recent budget. <

"In a year when most other states raised taxes to deal with deficits, we held the line, and that is making a real difference for our economy," Doyle said in a statement. Doyle vetoed a measure passed by the Legislature that would have severely restricted property tax increases. <

UW-Madison professor Joel Rogers said the relationship between taxes and job creation was too complex to make any simple connections between the two. <

But, "I think the Doyle pledge not to raise taxes is a very important signal to the business community about how seriously he takes creating a favorable" business climate, said Rogers, director of the Center on Wisconsin Strategy. <

Rogers, who called the latest numbers "very welcome Thanksgiving" news, said the true test was whether the jobs being created were as good or better than the manufacturing jobs being lost. The federal data needed to answer that question with certainty won't be available until next summer or fall, he said. <

Sectors that saw growth included trade, transportation and utilities; and education and health care, which together gained more than 20,000 jobs. Government employment saw a decline. <

Ludeman said at least some of the new jobs were likely to measure up well to manufacturing positions. <

The wholesale trade industry was up 4,300 jobs in October over October 2002, he said. Jobs in that industry can be open to workers with no higher education. Their average statewide wage is $40,521 - slightly higher than the average manufacturing wage of $39,739, according to the Department of Workforce Development. <

The financial activities sector, which also has an average wage slightly above that of manufacturing, gained 4,800 jobs over last year. Retail jobs, which carry a low average salary - $16,172 - had only modest gains, with 850 new positions. <

In his statement, Doyle emphasized the state should still be concerned about its manufacturers, which have bled around 100,000 jobs since January 2001. <

Rogers agreed. <

"We've got to do something in Wisconsin about manufacturing," he said. "I think that's where we should focus in the short-term."