MILWAUKEE – 2024 started on a slow note as only 10 of 22 available local economic indicators pointed upward in January, according to a monthly report by the Metropolitan Milwaukee Association of Commerce. January’s total marks the sixth consecutive month in which less than half of all indicators registered positive, but is a modest increase from the nine positives posted in December.
“Annual revisions to employment numbers by the Wisconsin Department or Workforce Development indicated stronger growth in 2023 than originally reported, from a 0.4% increase to the revised 0.8% growth. These revisions show stronger gains in 2023’s first half, averaging 1.3% year-over-year, but fell off in the second half with average growth of 0.3%,” said Bret Mayborne, MMAC Vice President – Economic Research. “Job levels fell in December (down 0.1%), the first year-over-year decline registered since March 2021. This weakness in the job trend continues into 2024.”
Highlights of the data include:
- January starts with a year-over-year job decline of 0.6%, coming on the heels of 0.1% decline in December 2023. January’s decrease translates into a loss of 5,000 jobs from one year ago with a current nonfarm job total of 841,800.
- By industry sector, January declines were widespread as seven of 10 major industry sectors recorded year-over-year decreases. The information (down 6.7%) and professional and business services (down 3.8%) sectors saw the largest percentage declines. On the positive side, the construction, mining and natural resources sector (up 4.8%) posted the fastest increase.
- Manufacturing-related indicators showed weakness. Employment fell 1.2%, its seventh consecutive monthly year-over-year decline after revision. Earnings and hours indicators for manufacturing production workers also trended negative. The length of the workweek for such workers fell 13.8% in January, while average weekly earnings (down 16.1%) and average hourly earnings (down 2.7%) also fell versus year-ago levels.
- A decline in the number of unemployed – down 3.8% year-over-year – led to a small decline in the metro area unemployment rate. January’s seasonally unadjusted rate was 2.8% in January, down one tenth of a percentage point from one year ago. Milwaukee’s January rate matches Wisconsin’s rate but ranks below the nation’s 4.1%. ∙ Local housing & real estate indicators were mixed. The number of existing home sales rose 3% in January (to 685), following a 13.8% decline in December, year-over-year. Mortgages recorded in Milwaukee County fell a modest 0.3% in January to 1,430.
