MADISON: Wisconsin’s statewide unemployment rate has dropped below 4 percent for the first time in years, but longer term, the growing economy could face a labor shortage.
Labor market economist Scott Hodek says the statewide rate was 3.8 percent, a level that hasn’t been seen since the 1990’s. Hodek said, “Not only did you have the standard seasonal movement downward from April to May. In some cases you had from .8 percent to 1.5 percent point down from last May.”
Hodek is referring to unemployment numbers that have dropped almost a full two percentage points from May, 2015, which shows a drop even beyond normal seasonal hiring. Marathon County sits at 3.4 percent unemployment, Portage at 3.7 percent, and Wood at 4.4 percent, all down from a year ago.According to Hodek, finding new workers to fill the economic growth will be the next challenge.
“The economy is still growing at a moderate pace. Over the next couple of decades it’s really a labor force issue we are seeing. Anything we can do to mobilize and underutilized populations or attract and retain talent is going to be vital,” he said. 42 of the state’s 72 counties have an unemployment rate of four percent or below. Analysts say a four percent rate is nearing full employment when statistical factors are weighed.
