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Slower growth and an uptick in unemployment point to cooling economy in Wisconsin

By: Erik Gunn

A heavy equipment operator works at the site of the new Wisconsin Historical Society building in Madison. Wisconsin construction jobs have been growing over the last year, although they declined some in March, according to the Department of Workforce Development. (Photo by Erik Gunn/Wisconsin Examiner)

Wisconsin’s economic growth is continuing to slow down, with job numbers down from a year ago and unemployment up slightly, the state labor department reported Thursday.

β€œThe Wisconsin labor market has cooled a bit along with the national economy,” said Scott Hodek, section chief in the office of economic advisors at the Wisconsin Department of Workforce Development. β€œBut unemployment remains historically low.”

Jobs and employment data are collected through two separate surveys conducted by the federal government.

The number of jobs reported each month is projected based on a federal survey of employers’ payrolls. The number of people listed as employed or unemployed is projected based on a survey of U.S. households each month.

With the release of data for March on Thursday, Wisconsin now has the jobs and employment picture for the full first quarter of 2026. The release of January and February data was delayed until earlier in April while DWD adjusted its data calculations in comparison with unemployment insurance tax collections. That annual benchmarking process was delayed further due to the October 2025 federal government shutdown.

β€œThrough 2025 and now into β€˜26, we are seeing continued growth still, but it does seem to be decelerating some,” Hodek said.

The number of jobs reported each month is projected based on a federal survey of employers’ payrolls. The number of people listed as employed or unemployed is projected based on a survey of U.S. households each month.

The household survey results projected 109,500 people were unemployed in March, an increase of 2,200 from FebruaryΒ  and an increase of 8,400 from March 2025. The unemployment rate β€” the percentage of people who report they are actively seeking work β€” went up to 3.5% in March. It has increased by a tenth of a percentage point each month for the last three months.

Wisconsin had a projected 3,021,600 jobs in March, about 1,200 more than February of this year butΒ  a loss of more than 17,000 since March 2025. Hodek said that echoed an increase in the number of jobs nationally from February to March.

The construction industry, which has been doing well in Wisconsin, showed a projected 151,800 jobs in March, 1,800 fewer than in February, but a gain of 6,600 jobs from March 2025.

β€œThere are a lot of jobs there still, and if anything, the employment trend over the last year has likely accelerated,” Hodek said.

A challenge has been a continued shortage of workers. β€œWhat we’re seeing is demand still outstripping supply,” Hodek said. β€œThere’s not enough crews to go around.”

The number of jobs in manufacturing was projected at 453,600 in March, 1,800 more than in February but a loss of 5,200 jobs from March 2025.

There were a projected 437,500 jobs in healthcare and social assistance in March, a gain of 300 from February and a gain of 4,900 from March 2025.

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