May 11, 2012

Positive Economic Indicators

When the new Governor and Majority parties of the Legislature were sworn in last year, we put jobs and the economy at the top of our agenda.  Within the first few months, a series of job creation bills were enacted into law, including a balanced budget that did not raise taxes.  We took seriously our role in making a difference, and with the session now behind us, those actions are generating positive economic news for Wisconsin.   

Wisconsin’s unemployment rate continues to drop and jobs are being created every month.  Leading the way is a significant increase in manufacturing employment.  In fact, manufacturing has consistently been gaining jobs for more than a year now.   More than 14,000 new jobs in this area have been created, placing Wisconsin eighth in the nation in the total number of manufacturing jobs created since January of 2011. This year alone, Wisconsin ranks sixth in the nation in the total number manufacturing jobs created, with more than 6,500 new jobs.

Manufacturing jobs have increased over the last four months and continue to rise.  A recent Manufacturing Career Expo in Milwaukee had more than 800 jobs ready to be filled.  In addition, a report issued last month found that 87% of businesses surveyed will be adding new jobs in Wisconsin this year, with almost 70% of those jobs being in the manufacturing sector.  Also, a recent ranking by CEO magazine moved Wisconsin up four more spots, putting the state now at the 20th best state to do business. 

Across the state, approximately 18,000 more people are employed compared to this time last year. Wisconsin’s unemployment rate, at 6.8%, is the lowest it has been in years, well below the national rate of 8.2%. Further, all of the counties in the 11th Senate District have better unemployment rates than they had one year ago.

Employers are taking note of the job creating environment in Wisconsin.  In our area, the Spancrete World Headquarters in Waukesha recently announced its intent to reinstate all employees who were previously laid off.  The company is also hiring 30 new employees.  Trace-A-Matic in Brookfield will receive $300,000 in tax credits to facilitate job creation of up to 35 jobs related to the company’s expansion in Brookfield.  Racine Metal-Fab in Sturtevant is planning to invest more than $8.5 million to build and equip a new facility.  The company is planning on creating up to 25 new jobs. 

Businesses of all sizes are adding jobs around the state.  However, employers often have a hard time filling jobs due to a lack of qualified or willing workers.  In creating solutions to help them add jobs and find workers, the Legislature enacted a Wisconsin Workers Win program (W3) and instituted a high school vocational diploma.

Wisconsin now has a pilot program which will match unemployed individuals with six-week training placements to prepare job seekers for the workplace.  The new W3 program is an innovative approach which will provide an opportunity for individuals to train and acquire skills towards an end goal of full-time employment.  The program allows participants who collect unemployment insurance to continue to collect benefits while enrolled in the job training program. 

The W3 program is scheduled to begin in June in Walworth, Milwaukee, Racine, Kenosha, and Rock counties.  Those interested in participating (both job seekers and employers) can visit http://dwd.wisconsin.gov/wiworkerswin to learn more and to register their interest.  The W3 program is a win-win for Wisconsin, connecting job seekers with prospective employers.

Finally, more good news, this time as it relates to the state budget.  New projections are in, showing Wisconsin will realize a budget surplus of about $154 million.  Earlier projections actually showed a deficit of $143 million by the end of this fiscal year, but revenue is up, meaning more people are working and seeing an increase in their personal income. Of that, about $45 million will be added to the state's rainy day fund, marking only the second time in the last ten years that has been done. 

Wisconsin's path to economic recovery looks better each month.  Employers have a more positive outlook for job growth, in part due to the proactive steps we took more than a year ago.  State and local budgets all across the state are balancing out, meaning less need to raise taxes.  Unemployment is down and morale is up, as employers start to breath a little easier after being suffocated for so many years.  We need to keep it going, and we need to keep Wisconsin's economic indicators, positive. 

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Sen. Kedzie can be reached in Madison at P.O. Box 7882, Madison, WI 53707-7882 or by calling toll-free 1 (800) 578-1457.  He may be reached in the district at (262) 742-2025 or on-line at www.senatorkedzie.com