Unemployment rates in the state have dropped to its lowest mark since February according to a report from the Wisconsin Department of Workforce Development late last week.
DWD Secretary Roberta Gassman said in a statement while there are still many people unemployed, signs of an economic turnaround are apparent.
The DWD release said Wisconsin’s unemployment rate for August 2009 was 8.4 percent, down from June’s 9.2 percent. Unemployment in the state started the year at 7.7 percent in January and 8.8 percent in February. The national rate for August was 9.6 percent, compared with July’s 9.7 percent.
The report said at both local and national levels August rates are about 3.8 and 3.5 percentage points higher respectively than they were in 2008.
Dennis Winters, chief labor economist for the DWD, said the unemployment rates generally drop at this time of year due to seasonal effects, but said this could also be attributed to a recovering economy. When asked if the trend would continue, Winters was hopeful.
“Once we get further into the economic recovery, I expect job gains to occur,” Winters said. “This is hopefully the beginning of that trend.”
According to Sen. Glenn Grothman, R-West Bend, it is hard to say what the outcome of this trend will be. He said government programs have boosted the economy by encouraging citizens to buy more cars and homes, but when these programs end, unemployment rates could climb back up.
“An increase in interest rates will make things go back the other way,” Grothman said.
Despite these concerns, Winters said, as of now, the economy appears to be mending itself. He added jobs are being created for businesses, and the federal stimulus package has put money into green building and workforce training.
Sen. Fred Risser, D-Madison agreed the stimulus package has had advantageous effects on this economic turn around. For example, he said an increase in highway jobs has resulted in increased employment, and the actions in Washington, D.C. have helped dampen the tide of recession.
Risser also said not all states have bounced back, but Wisconsin is on its way to recovery.
“Wisconsin is not as heavily involved in manufacturing, and its economy is based on more than one industry,” Risser said. “As a result, Wisconsin’s economy did not go down as far as some others did.”
In order to boost jobs back to their original place on a national level, Grothman said American manufacturers need to be more competitive in the world economy. He said this can be aided by tax incentives and by a reduction of business regulations.
Officials agreed unemployment rates, for the most part, have decreased in all professions. Grothman, however, pointed out the recession has not hit government workers as hard.