The latest economic forecast from the Wisconsin Department of Revenue (DOR) indicates a projected downturn in the manufacturing workforce in Wisconsin, mirroring a national decrease in manufacturing employment.
Employment within the state’s manufacturing sector dropped by 0.5% in 2023, as per the DOR’s updated employment figures. The forecast anticipates a continued decrease in jobs within this sector through 2027, aligning with a nationwide trend of diminishing manufacturing employment.
Since 2001, when it was overtaken by the trade, transportation, and utilities sector, manufacturing has been the second-largest source of employment in Wisconsin. However, according to the recent forecast, it is predicted to slip to the third position behind the health and education services sector this year.
Statewide employment saw a 1.4% increase last year and is projected to grow by an additional 0.7% in 2024.
The report highlighted an unexpectedly strong growth in the last quarter of 2023, indicating that the labor market tightness is likely to continue into 2024. Despite anticipating a slow growth phase aimed at reducing inflation to the Federal Reserve’s target range, this adjustment is not expected to happen until late 2024 or 2025.
By the end of 2023, eight private employment sectors had surpassed their employment levels before the pandemic, with only the leisure and hospitality and other services sectors still below their pre-pandemic peaks, the latter by just 0.7%.
The DOR also forecasts a 4.1% growth in the state’s nominal personal income for both 2023 and 2024. Adjusted for inflation, real personal income growth is expected to be stagnant for 2023 but increase by 2% in 2024 as inflation rates begin to stabilize.
