The January layoff data from the BLS paint a bleak picture of Wisconsin’s economy. While we await the more comprehensive jobs numbers (Zach asks the question, do you think the numbers will be favorable or unfavorable for Wisconsin?), the layoff data point in a less-than-favorable direction for the Badger State. Illinois, on the other hand, is doing quite well. As a ratio of population, Wisconsin is by-far the worst performing state in the Midwest survey.
The basic numbers look bad for Wisconsin.
Among the major layoffs reported in January were Sub-Zero in Madison with 100 layoffs; M&I/BMO Bank in Milwaukee with 57, Mayville Products with 130 and Colligan’s Bakery in Stevens Point with 51 layoffs.
Only fives states in the U.S. reported more mass layoffs in January: California (342), New York (166), Pennsylvania (120), Florida (87) and North Carolina (84). Among other Midwestern states, Ohio reported 67 mass layoffs and Illinois reported 55.
Wisconsin also experienced the most initial claims for unemployment among Midwestern states in January with 6,014 new applications. Ohio was No. 2 in the region with 5,630, according to the BLS figures.
Here’s the data for the midwest.
| Mass Layoff Events | Initial Unemployment Claims | |
| Illinios | 55 | 4823 |
| Indiana | 40 | 3594 |
| Iowa | 17 | 1271 |
| Kansas | 8 | 815 |
| Michigan | 53 | 3962 |
| Minnestota | 20 | 1591 |
| Missouri | 42 | 2860 |
| Ohio | 67 | 5630 |
| Wisconsin | 78 | 6014 |
Wisconsin has both the highest number of events and the highest number of initial unemployment claims driven by those events. But that’s not the worst of it. When we normalize these numbers for population, Wisconsin is in far worse shape. If we sort the new data by ratio of initial claims by population (derived from the July 2011 estimates), a much worse picture of Wisconsin emerges.
| Events | Claims | Population | Event Ratio | Claims Ratio | |
| Minnestota | 20 | 1591 | 5344861 | 0.000374% | 0.02977% |
| Illinios | 55 | 4823 | 12869257 | 0.000427% | 0.03748% |
| Michigan | 53 | 3962 | 9876187 | 0.000537% | 0.04012% |
| Iowa | 17 | 1271 | 3062309 | 0.000555% | 0.04150% |
| Kansas | 8 | 815 | 1871238 | 0.000428% | 0.04355% |
| Missouri | 42 | 2860 | 6010688 | 0.000699% | 0.04758% |
| Ohio | 67 | 5630 | 11544951 | 0.000580% | 0.04877% |
| Indiana | 40 | 3594 | 6516922 | 0.000614% | 0.05515% |
| Wisconsin | 78 | 6014 | 5711767 | 0.001366% | 0.10529% |
Wisconsin has had nearly twice the layoffs/population than the next state on the list (Indiana). Also, compared to Wisconsin, Illinois has prevented the layoffs we’re seeing here. While the Illinois state budget may be in turmoil, their economy is recovering nicely. Wisconsin is not recovering under the Republicans. It’s high-time we turned them out onto the streets.
Lets think about this from a business standpoint. Am I going to grow my business in the state of Wisconsin with the prospect that a great pro jobs and business growth Governor is going to be recalled? Keep kicking up the dust of political turmoil so you can create an atmosphere like the one you have now, uncertainty. Trust us in the long run Walkers approach is going to be a lot better. It ALWAYS works. And just you watch Illinois over the next couple of years compared to Wisconsin. They’re going to be hurting. But believe what you want to belief based off a couple questionable multi-interpretive short term statistics. Why don’t you focus on the unemployment rate? Also he said 250 thousand jobs in 4 years not a year, and you want to recall him. I sure you would have supported Obama being recalled after one year if it was allowed at the federal level. Illinois has the luxury of a international city and a whole different type of economy. Manufactoring plays a larger role in Wisconsin’s economy and look at what our president is doing to help that. Bottom line is you can keep thinking you changing people’s minds with these blog post but you’re only preaching to your side or people like me whos minds you’re not going to change.
I’m just citing the data, Pete. Don’t believe me? Do you believe the economic projections of the Federal Reserve Bank of Philadelphia who also see 6 more months of stagnation for Wisconsin and 6 more months of steady growth for Illinois?
The data from the December report of the Leading Index of Economic Indicators shows that Wisconsin is expected to stagnate with either no growth or a drop of approximately 1.5%. Illinois, on the other hand, is expected to see growth on the order of 1.5 – 4.5% in the index.
Data is data. I know that that is a hard concept for a GOPer to comprehend, but the numbers really do matter and Walker really is responsible for the decline in Wisconsin’s fortunes. And Walker made his own bed (and feathered it with corrupt cronies) when he went after the unions. He has nobody but himself to blame. When you kick a hornet’s nest, don’t whine when they sting you to death.
President Obama, on the other hand, has done remarkably well at growing the US economy despite a lot of bad advice he’s had from his close advisors (Larry Summers in particular). Again, the data do not support your assertions.
I disagree. Any repercussions are solidly in the Walker camp. The response SHOULD have been anticipated by an able administrator, and avoided. These consequences are NOT unintended. Mr. Walker knew, or should have known, what the response would be. Instead, he pursued an all-or-nothing strategy, and very well may end with nothing. U.S. and state politics are set up to allow only gradual change. Those that wish for sudden, extreme change are ill-advised.
I return to quote one of my all-time favorite movies…
This really describes Walker and crew to a tee. So be careful to ascribe to them the ability to see what the reactions would be to their actions. I honestly think they thought the unions would roll over and die.
You’re giving them much more credit than they deserve.
“…these are not very bright guys…”
“Trust us”
I try to have faith in our beloved savior, dear friend, but the temptations of these heathen socialists are so strong.
Come to the Dark Side…. We have cookies!
Thanks for reminding me. I’m going to call my neighborhood girl scout now and ask why my cookies aren’t here yet. I’ll also ask if she has extras.
Phil, haven’t you said that the recovery is a question of demand? Notably, every state on the mass lay off list is a manufacturer state. I’m assuming that most of the demand for manufactured goods comes from out side that state.
Thus, if these businesses are failing because of a lack of revenue isn’t it a failure of national policies (or international trade policies?)
The other explanation, and the one that would be the state governments fault,is that if demand is high and the businesses are still failing or leaving the state because regulatatory burdens increase the cost of goods sold beyond what revenues can support.
Have you seen any figures that suggests Wisconsin and the other rust belt state’s job loss are attributed to costs or lack of revenue. I think we would need to see those types of figures before a conclusion can be drawn.
My initial thought is that it is probably a demand problem than a regulatory problem.