Wisconsin Job Watch
The State of Working Wisconsin 2014:
Slow Growth in Jobs and Wages, Working Wisconsin is Still in the Doldrums this Labor Day
Just this year, the national labor market finally recovered to the 2007 pre-recession benchmark. It is good news and
it has been a very long time coming. Given millions more working age adults in our labor market today than in 2007,
however, it is no surprise that the US still has persistently high levels of long-term unemployment and involuntary
part-time work as well as tepid wage growth. In Wisconsin, the situation is, in some ways, worse.
The State of Working Wisconsin 2014 (Part 1) uses the best and recent data available on jobs and wages to
describe the serious economic challenges that Wisconsin continues to face:
A Significant Wisconsin Jobs Deficit
Wisconsin needs 130,400 jobs today to get back to the 2007 level of employment, taking into account the shortfall
(WI jobs still 21,900 below 2007), plus jobs needed to accommodate population growth since then (108,500).
Slower than National Job Growth
Over the course of the recovery, Wisconsin lagged behind the national job growth rate (4.0 v. 6.1%). That means
every time national growth should have given Wisconsin three jobs, the state added just two. WI would have 58,000
more jobs today if state jobs had grown at the national rate.
Wisconsin’s Severe Racial Inequality
Wisconsin African American unemployment (15 percent) is 2.8 times higher than Wisconsin’s white unemployment
rate (5.4 percent). Only three states (MN, NE, and LA) and Washington DC posted higher levels of black/white
disparity.
Long- Term Stagnation of the Median Wage
The annual hourly real wage increase for the median worker (1979-2013). Taking inflation into account, the median
wage grew by just 50¢ from $16.50 in 1979 to $17.00 per hour in 2013. (Wages expressed in 2013 $s.) The median
wage has ticked up in the last few years but remains below the pre-recssion high.
Gender Gap Closing (Slowly)
The gender gap has narrowed in the last few decades. In 1979, at the median, for every dollar a man earned,
women earned 59 cents. By 2013, women earned 82 cents. The shrinking gap is the result of an increase in women’
s wages and declining wages for men (with those declines concentrated in the 1980s and early 90s).
Continued Decline of Defining Sector
Manufacturing employment has fallen from 600,000 in 2000 to 466,000 in 2014 leaving fewer than four workers
employed in manufacturing today for every five employed in 2000. It is true that manufacturing has produced jobs in
the recovery, but not at rates that will get us back to levels of the past. And despite these losses, Wisconsin remains
consistently among the top of states in terms of manufacturing employment.
Act 10 Aftermath
Given the structure of Act 10, it is no surprise that Wisconsin’s public sector unionization rate is falling. The state’s
public sector unionization rate has fallen from over 50 percent, to 35 percent. The decline in Dane County is much
more dramatic with public sector unionization falling in half over just one year, from 55 percent in 2011 to 26 percent
in 2012.
“The short-term and longer term views on jobs and wages are clearly better than two years ago. Still, there is much
room for improvement. Stronger job growth, high job quality, and less racial inequality are all possible in this state
but need to be consistently pursued” said Laura Dresser, COWS Associate Director and report co-author.
“Understanding where we are will hopefully help make to mark the way forward.”
(Note: The full report will be available for download at www.cows.org/soww on Sunday, August 31, 2014. If you would
like a copy of the full report earlier, please email ldresser@cows.org.)
Report authors will be available Monday, September 1, 2014, from 2:15-2:45 pm at:
Labor Fest
Madison Labor Temple
1602 South Park Street
Madison, WI 53715
You may also contact one of the authors or Emily Miota at the numbers above to arrange an interview.
The Center on Wisconsin Strategy (COWS) is a nonprofit, nonpartisan “think-and-do tank” dedicated to improving
economic performance and living standards in the state of Wisconsin and nationally. Based at the University of
Wisconsin-Madison, COWS works to promote “high road” strategies that support living wages, environmental
sustainability, strong communities, and public accountability. For more information, visit www.cows.org.