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Wisconsin leads the nation in wage growth, but there’s nuance in the numbers

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Wisconsin leads the nation in wage growth, but there’s nuance in the numbers






The average hourly wage in Wisconsin was $33.48 in June. A year earlier, it was $30.93. The year-over-year increase of 8.2% was the second largest jump of any state in the country, according to data from the U.S. Bureau of Labor Statistics.

It wasn’t just a one-month occurrence either. Average the increases for the first half of the year and Wisconsin ranks first; the state ranks second when averaging the past three months.

“There’s still just the undercurrent of we don’t have enough folks and the way to get them is money still matters,” said Jim Morgan, vice president of business development and workforce strategies at Waukesha-based employer association MRA.

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By the numbers, the job market is still tight. Wisconsin’s unemployment rate was 2.9% in June. It’s been around historic lows, ranging between 2.7% and 3.4%, since late 2021. The state’s total labor force in June was around 3.14 million people, up just 0.7% from where it was prior to the pandemic.

At the same time, the job and labor market in Wisconsin has cooled some since the Great Resignation period in 2021 and 2022.

The number of people quitting their jobs each month in Wisconsin reached as high as 91,000 in April 2022. This past April, there were 75,000 quits. Job openings have fallen, too, from a high of 268,000 in November 2022 to 172,000 as of April, the most recent data available.

Lori Malett, president of Milwaukee-based Hatch Staffing Services, said wage growth has tempered. A few years ago, employers were regularly offering double digit wage increases to entice candidates to change jobs, but now that figure is more likely around 6.5% to 8%.

She did say employers have trended toward giving larger increases to employees staying in their role, partially due to inflation and increases in the cost of living. If those increases were around 2.5% or 3% in the past, now they are coming in closer to 5.5%, Mallet said.

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Even with strong wage gains on average for Wisconsin, Mallet said there is a mismatch between what employers are offering and what candidates want.

“So many job seekers or candidates in the market, they’re still thinking in their mind they should be getting those double digit increases to make a move,” Mallet said.

To counteract that mismatch, Mallet said Hatch is often talking with candidates early in the process about their understanding of the market and expectations for a wage increase.

“We have it at that initial phone screen. We’re not even at the interview phase,” Mallet said. “And then we’re already starting to say, ‘OK, you know what? That’s not the market we’re in and if moving jobs right now is ultimately just to get a huge increase in salary, this is not going to be a good fit for you because we know our clients aren’t going to budge.’”

In 2022 and early 2023, Hatch’s clients had so much demand they were willing to go to great lengths to find new employees.

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“Well, demand is fairly light right now and most employers can get by a little bit longer without than what they could a year ago,” Mallet said.

Ryan Festerling, chief executive officer of Brookfield-based QPS Employment Group, echoed the sentiment that wage growth had tapered off. He said management and human resource teams were at “code red” to keep hiring as the economy emerged from the pandemic.

“Now that they’ve had some time to breathe, they know that if they continue to create a great culture, they don’t have to keep throwing money at it.”

Economic uncertainty is also translating to the candidate side as well.

“The average candidate is asking more questions about the stability of the organization, their ability to sustain a downward trend,” Festerling said, noting candidates are looking for other jobs when they are unsatisfied in their role, “but they are being very cautious about actually jumping ship.”

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Wisconsin’s wage gains aren’t quite as strong when looking at weekly wages, where the average in June was $1,111.54, up 8.2% from a year earlier and the seventh largest increase in the country. The average increase for the year is 6.9%, good enough for third in the country.

However, wage gains in the state have not been evenly distributed by industry or across geography.

For the second quarter, four metro areas – led by Eau Claire at 18% – outpaced the average hourly wage increase statewide of 7.8%. Sheboygan, Oshkosh-Neenah and Appleton were the others.

The state’s two largest metro areas, Milwaukee and Madison, saw average increases of 2.1% and 1.3%, respectively, with Racine and Green Bay essentially flat.

By industry, only the private education and health sector, which averaged a 16.1% year-over-year increase, is outpacing the overall private sector.

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The financial activities sector is just behind the state average at 7.3% and leisure and hospitality averaged a 6.7% increase. Manufacturing increased 5.1% on average and construction was up 4.2%.

Within manufacturing, however, there is divergence in wage trends across workers. For production workers in Wisconsin, the average increase in hourly wages for the past three months is 4.4%, suggesting non-production workers have seen increases much larger than the industry average.

Compounding matters for production workers, their average weekly hours have decreased year-over-year, dipping as low as 35.3 in January. For the second quarter, production workers averaged 38.6 hours per week, down from 39.6 a year ago, 40.2 in 2022 and 41.9 in 2021.

Slower hourly wage growth and declining hours have added up to a year-over-year decrease in average weekly wages for production workers in the first four months of the year. May saw an increase of 1.7% and June was up 6.2%. The average increase in weekly wages for the second quarter was 1.9%.

Industry

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June 2024
Average Wage

Average Increase in 2nd Quarter

Wage Growth
Since 2019

Total Private

$33.48

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7.8%

28.2%

Construction

$39.66

4.2%

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30.0%

Manufacturing

$32.36

5.1%

21.3%

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Trade, Transportation and Utilities

$30.28

6.6%

29.3%

Financial Activities

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$42.48

7.3%

29.7%

Professional and Business Services

$35.22

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-0.5%

17.7%

Education and Health Services

$35.07

16.1%

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30.6%

Leisure and Hospitality

$20.18

6.7%

39.7%

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Wisconsin

How Wisconsin became the must-win state of the 2024 presidential race

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How Wisconsin became the must-win state of the 2024 presidential race


There’s nothing easy about winning a statewide race in Wisconsin.

Over the past 25 years, Democrats and Republicans have braced themselves for hard-fought fights in the politically-polarized state, with most presidential contenders stumping in the state so much that voters truly feel like they’re part of the action.

Wisconsin has 10 Electoral College votes, which certainly isn’t the largest haul. (That would be California, with its 54 electoral votes.)

But the Badger State has arguably become the most consequential state on the 2024 presidential map by virtue of its Midwestern sensibilities and the highly competitive nature of its closely divided electorate, which makes it a bellwether for the politics of the United States.

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In what is likely to be a contest between Vice President Kamala Harris and former President Donald Trump, the state is set to once again be at the center of the political universe in November.

How did Wisconsin become such a key battleground?

The growing urban-rural divide

It’s generally accepted that presidential races in Wisconsin will be decided by razor-thin margins.

In 2000, then-Vice President Al Gore won the state over then-Texas Gov. George W. Bush by a 0.22% margin. Four years later, then-Massachusetts Sen. John Kerry defeated Bush in the state by a 0.38% margin.

The common denominator: Democrats romped in the urban centers of Milwaukee and Madison, while also performing well in the Driftless Area and in blue-leaning northern counties. And while Democrats did not win many of the rural counties, they remained competitive overall, allowing them to eek out slim wins statewide.

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Barack Obama changed this narrative in 2008 and 2012, though, winning by broad margins of roughly 14 points and 7 points, respectively. In the first race, Obama performed powerfully across rural Wisconsin, a huge breakthrough for Democrats.

But in 2016, Trump flipped Wisconsin into the GOP column for the first time since 1984, winning by a 0.77% margin and breaking down the “blue wall” that had held for decades.

Four years later, Biden won Wisconsin for the Democrats by a similarly tight 0.63% margin.

While both parties are clearly competitive in Wisconsin, the urban-rural divide — similar to much of the United States — has only grown wider. In the Badger State, heavily gerrymandered GOP-crafted districts and conservative rule dominating Madison for more than a decade — in what’s essentially a 50-50 state — have hardened partisan levels.

What will a Trump vs. Harris matchup look like?

This year, Harris and Trump are competing for many of the same voters, but they’re also appealing heavily to their respective bases.

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After Biden stepped aside as the Democratic nominee in July, Harris’ first major political rally as a presidential contender was held in West Allis, a suburb in Milwaukee County.

This was not by accident.

The vice president will need to win the county — filled with Democratic-leaning independents and voters in deep blue Milwaukee — by a sizable margin to offset what’s expected to be Trump’s strength across rural parts of the state.

Trump earlier this summer campaigned in Racine, as he hopes to carve out working-class support in an area that’s politically competitive but in recent years has leaned toward the GOP on the presidential level.

Both parties are itching to win the state: Republicans held their national convention in Milwaukee earlier in July, where Trump also tapped Ohio Sen. JD Vance as his vice presidential running mate. And Harris could potentially select Minnesota Gov. Tim Walz as her running mate, which would put another Midwestern voice in the vice presidential mix.

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The 2024 race will be centered on the economy, and whoever makes the most persuasive argument will likely win Wisconsin.

But the messenger will matter.

Even as Biden ended his campaign, Wisconsin was the swing state where he remained best positioned ahead of the fall, as his support among white working-class voters there had not collapsed.

While it will likely take another week to get a better sense of Harris’ standing in the state, early polling indicates another close contest. A Fox News poll taken after Biden’s exit showed Trump leading Harris by one point (50% to 49%) among registered voters.

But this is Wisconsin, after all. The political suspense is here to stay.

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2 killed in northwestern Wisconsin crash; speed and alcohol likely factors, sheriff says

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2 killed in northwestern Wisconsin crash; speed and alcohol likely factors, sheriff says


WCCO digital update: Morning of July 28, 2024

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WCCO digital update: Morning of July 28, 2024

01:16

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DOUGLAS COUNTY, Wis. — Two women were killed in a single-vehicle crash in northwestern Wisconsin Saturday night, and authorities believe speed and alcohol were factors.

The crash happened just before 8:30 p.m. on County Highway H near Koho Road in Douglas County, according to the sheriff’s office. 

Investigators believe the driver — a 27-year-old woman from Ashland — lost control of the car, left the road and hit a tree. She and her passenger — a 28-year-old woman from Bayfield — were dead when authorities arrived, the sheriff’s office said.

The crash is being investigated.

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Tammy Baldwin looks to maintain edge over top of the ticket in battleground Wisconsin | CNN Politics

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Tammy Baldwin looks to maintain edge over top of the ticket in battleground Wisconsin | CNN Politics




CNN
 — 

When Kamala Harris held her first campaign rally as the presumptive Democratic nominee last week, one of the most vulnerable senators in the country was on hand to welcome her.

Tammy Baldwin, the two-term Wisconsin Democrat, didn’t attend President Joe Biden’s post-debate rally in the state earlier this month. But her appearance with Harris signaled the new excitement Democrats are feeling from their base.

That enthusiasm will be key to helping the party defend one of the so-called blue wall states, where Biden won by half a point in 2020 and where Baldwin needs to win if Democrats are to have any shot at retaining their narrow Senate majority.

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But a reshaped presidential contest won’t change the calculus for Democrats in the most competitive Senate races – many of them in states former President Donald Trump won or narrowly lost in 2020. Baldwin isn’t nearly as endangered as her Democratic colleagues in Montana and Ohio, states Trump twice won big. But she will likely need to rely on some percentage of ticket-splitters to win, which even she has acknowledged may be harder than during her 2018 reelection race given the polarization of today’s politics.

“We are the battleground state,” Baldwin told the friendly crowd in Milwaukee on Tuesday before Harris took the stage.

Baldwin had spent the two days before Biden ended his reelection bid meeting with older Democrats in southwest Wisconsin, recording the “Pod Save America” podcast in Madison and shaking hands with voters at a fish festival in a conservative suburban county north of Milwaukee – a reflection of her need to both harness the base and reach beyond it.

Like many Democratic incumbents this year, Baldwin was already polling better than Biden. Even if Harris improves the overall landscape for Democrats at the top of the ticket – which it is too early to say – Baldwin’s challenge will be to keep up her advantage as her Republican opponent, Eric Hovde, becomes better known. The senator and her allies have painted Hovde as a wealthy bank CEO and frequently knock him for his ties to California.

“We have a Green County. We have a Brown County. We do not have an Orange County, Wisconsin,” she says on the stump, citing Hovde previously being named one of the most influential people in the Southern California county. But Hovde, who Republicans believe is a more formidable challenger than Baldwin’s 2018 opponent, has millions of his own money to spend.

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Brandon Scholz, a former executive director of the state Republican Party, doesn’t see Baldwin’s numbers changing much just because Harris is running.

“I think Republicans have underestimated Baldwin over the years,” he said Friday when asked about her ability to overperform the top of the ticket. “She has a very liberal voting record in Washington, no question about it. But she also spends time in Wisconsin and has some Wisconsin-centric legislation that she has pushed.”

But he cautioned that it’s still early in the campaign; voters aren’t tuned in yet; and Baldwin has been running much longer than Hovde, who entered the race in February.

“It’s gonna take him time to close that gap,” he said. “And he’s got 100 days to do it.”

Spectators at last weekend’s Port Fish Days parade in Port Washington along Lake Michigan sprawled over the curb to watch the Milwaukee Dancing Grannies; a trampoline act; and a stream of shiny Corvettes and firetrucks. Whether they wanted to be or not, voters who said “Tammy sucks” were sandwiched next to those who wanted to see her run for president.

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“Is Hovde that guy who’s from California?” asked 59-year-old Cheryl, who didn’t want to give her full name.

“He’s from Wisconsin,” yelled another woman sitting a few chairs away.

A Republican float rolls through the Port Fish Days parade in Port Washington, Wisconsin, on July, 20, 2024.

Baldwin’s strategy has relied on defining Hovde before he defines himself. Besides going after his California connections (he’s the CEO of Sunwest Bank and owns a home in Laguna Beach), her campaign is also attacking him on the air for a string of controversial comments – including saying that most nursing home patients aren’t in a condition to vote.

Hovde, who’s also CEO of a prominent Madison-based development company bearing his name, has so far poured $13 million of his money into his Senate campaign – his second after an unsuccessful bid in 2012. He’s responded to Baldwin’s ads with his own spots laying out his Wisconsin roots.

But like many GOP challengers this year trying to catch up to Trump’s poll numbers, Hovde is also trying to nationalize the race. After running an ad pressuring Baldwin to say where she stood on Biden after his disastrous debate performance (she never publicly called for the president to bow out of the race), he has pivoted to trying to tie her to the administration, specifically Harris, on inflation and the border. “We deserve better than leaders who bob along while America crumbles,” the narrator in one Hovde ad says over footage of the vice president laughing, with a Baldwin bobblehead featuring throughout the spot.

It remains to be seen how that will play out. The Hovde campaign did not make him available to reporters in the state last weekend and did not respond to CNN’s subsequent inquiries about the race.

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At the Republican National Convention in Milwaukee earlier this month, the chair of the Senate GOP campaign arm said Hovde had closed the gap in his race more than any of their other Senate recruits, specifically touting his ability to get on TV early because of self-funding. Still, a Fox News poll released Friday showed Baldwin leading Hovde 54% to 43% among registered Wisconsin voters, while there was no clear leader in the presidential race.

At least several attendees at the parade in Port Washington – which falls in one of the three GOP-leaning “WOW” counties (Waukesha, Ozaukee, Washington) in the Milwaukee area – said they were voting for Trump because they were Republicans, but hadn’t made up their minds about the Senate race yet.

That kind of indecision creates an imperative for Hovde to consolidate the GOP base – and an opportunity for Baldwin to peel off some of those voters.

Baldwin talks with voters at the Port Fish Days festival in Port Washington, Wisconsin, on July 20, 2024.

Working her way down the refreshment line at the Port Fish Days festival after the parade, Baldwin didn’t skip a beat when she got to Patrick Barnett, who was wearing a Trump polo shirt. He got a handshake and friendly conversation.

“I like her, and she has done a lot of good things,” said Barnett, 65, of nearby Mequon. “But her party has done too much to outweigh that.”

Reached by phone on Friday, Barnett said that the process by which Harris ascended to the top of the ticket only confirmed his distaste for the Democratic Party.

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He recalled voting for Baldwin at least once before and praised her for helping pass bipartisan legislation. “And honestly not voting for her after that wasn’t really on her – it was more, like I say, to do with the party,” he added.

But this year, he’s taken issue with the tone of some of Baldwin’s ads going after Hovde’s past statements – including one that features a farmer saying, “Eric Hovde, what the hell is wrong with this guy?”

Some 170 miles west of Port Washington, close to the Iowa border, the chatter at the Grant County Democratic picnic gave way to chants of “Tammy, Tammy, Tammy” as soon as the senator walked into the room on July 19, two days before Biden dropped out of the race.

Baldwin’s supporters in Platteville – a city that backed Biden but lies in a county that pivoted from Barack Obama to Trump – were fired up, even if there was hesitation about whether Biden could win Wisconsin.

“I give him a 50-50 shot,” said 72-year-old Tom Caywood, who didn’t want Biden to step aside. (“Don’t the voters have some say in this?” he asked.) But reached by phone a week later, Caywood said Biden did the right thing — even if he doesn’t like the pressure he thinks the party put on him.

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And he likes Harris. “She’s very familiar with the role, strong woman, and she’s got a legal background,” he said of the former California attorney general. He likes what she could mean for Baldwin and other down-ballot Democrats too: “Chances are, if they’re going to vote for her for president, they’ll probably just vote straight ticket.”

Baldwin greets supporters at the Grant County Democratic Picnic in Platteville, Wisconsin, on July 19, 2024.

Tracey Roberts said she wanted Biden to make his own decision, but that the presidential race was too close for comfort. “I’m very pleased,” the 66-year-old Platteville resident said by phone a week later, after Biden’s exit from the race. “I think it’ll really change the enthusiasm level – among the people I know, it’s so much higher.”

Local parties are feeling it, too.

“The amount of enthusiasm I have seen is unprecedented,” said William Garcia, the Democratic Party chair for Wisconsin’s 3rd Congressional District, which includes Grant County and is one of just two US House seats seen as competitive in the state. “I’ve had dozens of people contacting us to volunteer. I’ve had people donating money to the local party without us even asking.”

Garcia, who also chairs the La Crosse County Democratic Party, said he sees that excitement flowing both ways on the Democratic ballot.

“Baldwin does not need presidential coattails to win here in Wisconsin,” he said Friday.

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“But I think that a lot of people who were going to support Baldwin – those kind of undecided swing voters who were definitely going to support Baldwin but weren’t yet decided about the top of the ticket – I think they’re far more likely to go for Harris now.”





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