State Loses 12,400 Jobs in September, but Unemployment Rate Ticks Down

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The state of Wisconsin reported a net loss of 900 private-sector jobs in September, but also experienced a steeper decline of 12,400 nonfarm job losses primarily due to the loss of thousands of government jobs, according to the latest preliminary seasonally adjusted estimates released by the state Department of Workforce Development.

The loss in total nonfarm jobs, the sum of private- and public-sector jobs, reflected the loss of 11,500 government jobs. Most of those, 8,400, came at the local level.

While the number of overall jobs went down, the state’s seasonally adjusted unemployment rate declined slightly from 7.9% in August to 7.8% in September. The rate takes into account state residents who are available for work and actively seeking jobs. The U.S. seasonally adjusted unemployment rate was 9.1% in September, unchanged from August.

Gov. Scott Walker has established a goal of 250,000 new jobs in his first term in office, but after a fast start earlier this year, job creation slowed down and now the state is reporting monthly job losses. Total private-sector employment now stands at 2,347,400 jobs.

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Several industries reported job gains in September, including health care, with 3,000 additional jobs, and construction, with 1,500 additional jobs.

In addition to government, industries that lost ground included manufacturing, retail, and professional and business services.

DWD Secretary Scott Baumbach noted that monthly preliminary jobs totals have been revised upward in 10 of the past 12 months, including in August of 2011.

Baumbach said the unemployment rate compares favorably to other manufacturing-heavy Midwestern states, but is still too high and underscores the importance of a special legislative session now underway to boost job growth.

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Job postings on the Job Center of Wisconsin website recently topped 35,000. The state now is directing people claiming unemployment insurance to the Job Center site.

Even with disappointing recent monthly reports, the latest preliminary seasonally adjusted estimates show increases of 21,200 in total nonfarm wage employment and 28,600 private-sector jobs during the past year. In that time span, manufacturing had the biggest increase with 12,700 jobs, while state government had the biggest decrease with 8,500 jobs.

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