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Wisconsin IDEA
Insight • Data • Economics • Analysis
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Continuing Labor Shortage Problems for Wisconsin
Wisconsin Appears Headed for a Soft-Landing
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One of the most commonly identified problems hindering the economic growth of Wisconsin is chronic labor shortages. Coming out of the pandemic firms have struggled to find a sufficient supply of workers. As a result, firms have been reluctant to let workers go despite indications of an economic slowdown. This reluctance is, many economists believe, a primary factor in lower expectations of a recession in favor of the now predicted “soft-landing” of the economy.
If we trace the pattern of Wisconsin job openings and the number of unemployed persons over the past several years, we can see a few clear patterns. From early 2011 through 2015 and 2016 the number of unemployed exceeded the number of job openings with an average unemployment rate of about 6.6. One could argue Wisconsin had a surplus of workers. Starting in early 2017 the number of job openings exceeded the number of unemployed with an average unemployment rate between January 2017 and the start of the pandemic (April 2022) of 3.2 percent. The shock of the pandemic to unemployment is clear as is the relatively quick recovery. Notice, however, that the number of job openings throughout the pandemic was relatively stable with a surge of new openings as we moved out of the pandemic shutdown.
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Econ Quiz: Millennial Spending
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This week’s econ quiz will take a closer look at consumer spending, for the nation’s largest consumer segment: Millennials.
Millennials are the cohort born between 1981 and 1996, ranging in age from 28 to 43 years old today. According to the market research firm Mintel, Millennial consumer spending can be characterized by a lack of economic security brought on by tumultuous economic change during their formative years.
Emotional stress and burnout, and a shift towards family structures that differ from traditional two-married-parent households has also had an effect on their spending patterns. About 58% of Millennials age 30 to 44 have children. While their tendencies to have children later in life, have fewer, or no children at all, may be related to economic insecurity during their early adult year. Millennials who do become parents are spending more per child than previous generations, and are more likely to provide their children with a financially secure environment as a result of waiting until later in life to have children.
While over 50% of American Millennials feel they’ll have to work as long as they are able, this percentage varies by race, with Black and Hispanic Millennials feeling significantly more uncertain of their economic future. The emotional stress related to financial insecurities, makes for a lucrative market for stress-reduction products, food, and drink. For example, 34% of Older Millennials report regularly consuming products that contain a promise relaxation or calming in their advertising.
That brings us to today’s question. While delaying child rearing and buying stress reduction products is nice, the best way to avoid financial stress is to plan. What percentage of Millennials stick to a strict budget?
A. 25%
B. 32%
C. 40%
D. 54%
E. 69%
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OVERVIEW
Wisconsin follows the nationwide trend of a relatively small yet growing number of diverse business owners. This recent growth suggests a promising and economically important future for diverse business owners despite evidence that they face significant challenges.
Over 48,000 of Wisconsin’s businesses are owned by people of color. They employ nearly 55,000 workers and contribute over $1,600,000,000 in payroll receipts. These businesses provide specific products and services, generate income for themselves and their employees, create meaningful establishments in their communities, contribute to broader economic development, and aid in wealth accumulation in their communities.
In Wisconsin, the growth of businesses owned by people of color has been dramatic. From 1997 to 2012, American Indian business ownership grew by 33.2% while Asian ownership more than doubled, Latino ownership nearly tripled, and Black ownership virtually quadrupled. For comparison, nonminority-owned businesses grew by 10.7% during the same period.
Despite substantial growth in the last few decades, Wisconsin may be missing out on additional economic benefits from businesses owned by people of color because they remain underrepresented. Businesses owned by people of color represented 10.9% of total businesses in 2019, despite people of color representing 19.2% of the state’s total population at the time. Across states, Wisconsin ranks 50th for the rate of business ownership among minorities.
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Rural Pharmacies an Overlooked Piece of the Rural Health Care System
Tuesday, February 20, 2024 | 12:00 pm - 1:00 pm (CST)
Explore the pivotal role of rural pharmacies in providing vital healthcare services, especially in areas affected by hospital closures. Learn why the decline of independently owned rural pharmacies is a pressing concern, affecting medication access and downtown vitality. Join us to discuss strategies and policy changes needed to address the rural pharmacy crisis and secure healthcare access for rural communities.
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2024 Wisconsin Rural Economic Summit System
Thursday March 28, 2024 | 9:00 am - 12:00 pm (CST)
Using the latest research and data specific to Wisconsin’s rural communities and regions, we will focus on the Wisconsin rural economy. The summit includes an overview of the latest economic and demographic trends across rural communities, an examination of entrepreneurship, and a discussion of what rural communities can do to foster economic growth and development. This event is virtual and free to the public.
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Come to Platteville this spring and explore how local entrepreneurship drives the Driftless Region’s development. Network with fellow community champions from around the state. And gain new technical skills for promoting entrepreneurship in your small town.
An annual event in other Midwestern states, the CEC Conference is coming to Wisconsin for the first time in 2024. Business leaders, economic development professionals, local leaders, and community champions will gather in Platteville for two days of programming about strategies for supporting entrepreneurship in Wisconsin’s small towns.
Not a typical conference, CEC will tour attendees around Platteville to explore the Driftless Region’s entrepreneurial ecosystem. Local businesses will host panels and presentations, and conference attendees can check out the local food scene, visit key community sites, and network with fellow leaders in rural development. Participants will walk away with new perspectives and strategies for building entrepreneurial ecosystems in their small towns.
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Monday-Tuesday, May 20-21 (Wausau, WI)
Wisconsin Downtown Action Council (WDAC) invites all those interested in the success of Wisconsin’s downtowns to attend the Downtown Summit on May 20th and 21st in Wausau’s beautiful River District. The Summit will begin on Monday at 10:30 a.m. with the evening reception hosted at the Leigh Yawkey Woodson Art Museum following the mobile workshops. Tuesday’s sessions will be at the historic Jefferson Street Inn. All event venues are located in Downtown Wausau and close to parking and amenities like amazing pubs, restaurants and shops. The summit is a “hands-on” approach to conferencing including out and about tours, panels, Keynote, general and breakout sessions. Of course, plenty of time for networking is included as well.
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(Agri-View - 1/30/2023)
(WisBusiness.com - 1/30/2023)
(Agricultural & Applied Economics Association - 1/18/2024)
(WJFW - 1/12/2024)
(WEDC Office of Rural Prosperity - 1/1/2024)
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Equal Employment Opportunity & Affirmative Action Statements
An EEO/AA employer, the University of Wisconsin-Madison Division of Extension provides equal opportunities in employment and programming, including Title VI, Title IX, the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act requirements. Please make requests for reasonable accommodations to ensure equal access to our educational programs as early as possible preceding the scheduled program, service, or activity.
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