The Department of Workforce Development announced Thursday the state’s unemployment rate in January was up 1.8 percent from December, for a total unemployment rate of 7.6 percent. The rate was 2.7 percent higher than the 4.9 percent unemployment rate for the same time last year. However, despite the state’s increase, Wisconsin is still below the national unemployment rate of 8.5 percent.
According to a statement by DWD Secretary Roberta Gassman, the number of Wisconsin jobs decreased by 87,900, with private sector jobs decreasing by 72,500. Trade sector jobs shrank by 17,600, government jobs fell by 15,400, and manufacturing jobs decreased by 13,500. Additionally, Gassman added that a survey of Wisconsin households showed 60,500 fewer employed citizens when compared to December and 72,200 less than one year ago. Overall, total state employment fell by 43,600 from last month and 62,500 compared to January 2008.
“The jump in Wisconsin’s unemployment rate underscores the economic challenges we face as a nation and why we are taking strong action through the American Recovery and Reinvestment Act to put people to work,” Gassman said in the statement. “In his budget, Governor Doyle has set a path for recovery, and here at DWD, we will do our part to help provide training and connect skilled workers with employers.”
Democratic lawmakers reiterated the secretary’s thoughts. “It confirms what we have known all along, that our state is battling the toughest economic times in two generations,” said Assembly Majority Leader Tom Nelson, D-Kaukauna. “The Legislature must work on bringing and keeping jobs in the state.” To help solve the problem, Rebekah Sweeney, spokesperson for Assembly Speaker Mike Sheridan, D-Janesville, advocated a modernization of the state’s unemployment insurance, extending benefits to more unemployed Wisconsin citizens currently not receiving benefits and bringing an additional $45 million to the state from the federal stimulus package.
Republican lawmakers, however, believe the Legislature’s efforts will likely cause more harm in the long run. “It’s very concerning… but with all the companies that have been laying off jobs, it’s not surprising,” said Kimberly Liedl, spokesperson for Senator Minority Leader Scott Fitzgerald, R-Juneau. “I think it just goes to show that we need to focus on job creation instead of taxing people.” Liedl added the reduction in taxes would likely help state employers keep their employees, thus reducing unemployment in the long run.
Republican Party of Wisconsin spokesperson Kirsten Kukowski expressed similar concerns. “Wisconsinites need their jobs back and Governor Doyle’s plans to raise taxes on employers and Wisconsin families isn’t going to accomplish that,” Kukowski wrote in an e-mail to The Badger Herald.
The seasonally adjusted unemployment rate, which considers seasonal changes in unemployment unaffected by other economic conditions, for January was 6.9 percent, up 1 percent from December, and up 2.5 percent from the same time last year, according to Chris Marschman, spokesperson for the DWD. Currently, 223,200 individuals are unemployed throughout the state.