Wisconsin’s economy, along with the nation’s, is cooling, the state’s labor department reported Thursday, with unemployment up slightly in January and jobs trending down from January a year ago.

The state’s trend tends to match seasonal patterns in Wisconsin, said Scott Hodek, section chief for the Office of Economic Advisors in the Wisconsin Department of Workforce Development, during an online briefing. But it also tracks with the national economic slowdown, he said, although Wisconsin’s experience has been easier.

“The Wisconsin labor market has cooled a bit along with the national economy, but unemployment does remain historically low” in the state, Hodek said.

The state projected 3,032,500 jobs in January 2026 — an increase of 8,000 from December 2025, but a drop of 15,400 from January 2025. “That fits what we know of national trends that we have seen so far in the first quarter,” Hodek said.

Wisconsin’s construction industry has been gaining in the last year, with 10,000 more jobs in January 2026 compared with January 2025, and an increase of 2,400 jobs since December.

Manufacturing, however, lost 2,100 jobs in January 2026 compared with December 2025, and 8,600 jobs from January 2025. That continues “a long-running trend,” Hodek said.

The number of jobs reported each month is a projection made from a federal survey of employers’ payrolls.

The Wisconsin unemployment rate edged up to 3.3% in January — an increase from 3.2% in December 2025, but the same as January 2025, Hodek said. Labor force participation in Wisconsin is 64.3%, higher than the national average of 62.5%, DWD reported.

Labor force participation measures how many people age 16 or older are working or looking for work; it leaves out people in the military or living in institutions including prisons and nursing homes.

The employment and labor force projections are based on a different survey that the federal government conducts of households.

The report released Thursday is one of three to come out in April. Hodek said the January data didn’t come out sooner because the federal government shutdown in October delayed an annual review that adjusts the labor market statistics to new benchmarks. Data for February and March will be released later in April to catch Wisconsin up with the calendar. 

A national report that looks at hiring trends as well as layoffs and firings through February shows that “hires have been down and overall openings have been down, and separations have been pretty stable,” Hodek said.

Those numbers aren’t available yet for Wisconsin, he said, but the December data showed the state had a higher rate of job openings and a lower rate of job separations, he added.