Personal Income to Grow More Slowly in Wisconsin
The Department of Revenue has put out projections for the U.S. personal income rates for the next year. The projections predict that Wisconsin will see slower growth in this number than what the average in the U.S. expects. The report claims that Wisconsinites will see an increase in their overall earnings of 4.4 percent in 2020, while the average U.S. citizen can look forward to 4.9.
This trend is not new. In 2018, Wisconsin’s rate was 4 percent, whereas the national percentage stood at 4.5. Furthermore, for 2019 the estimates put Wisconsin’s percentage at 3.5, in contrast with the U.S. average of 4. However, in this regard, Wisconsin still outperforms other states in the Great Lakes area.
The report foresees this rate of growth to continue until the end of 2020. After that, there should be a substantial slowing down in the following two years, ending in 2022. This dip in later years falls in line with what is projected to take place across the United States.
Another problem became apparent upon the department report. Wisconsin’s employment has also been slow to rise these past few years. In both 2017 and 2018, the rate of employment here rose to 0.7 and 0.8 respectively. The average, however, was 1.6 at the time, meaning the state barely reached half the mean.
On the same note, the unemployment rate in Wisconsin is similarly below the expected mean. In May it reached 2.8 percent, compared to the 3.6 average across the states. According to predictions, this number will not fluctuate until 2022, where it should increase to 3.2.
Matching the overall national situation, utilities, trade, and transportation compose the biggest sector of employment, with 28 million workers across the country, and 544,000 occupying state jobs. This sector has been sluggish in its recovery, as the DOR highlights. It still falls behind, since the employment rose past the previous record in 2015. Meanwhile, Wisconsin has just begun to pick up steam and is nearing its peak.
The manufacturing industry, on the other hand, is showing an upward trend in The Badger State. Coming out strong from the previous recession, 16 percent of Wisconsin’s working force is comprised of state workers. Juxtaposed with the average U.S. of 9 percent, that is quite a difference. In addition, the state regained over 60 percent of lost jobs following said recession.
In 2017 this sector mushroomed by 0.6, and even more in 2018, by 1.7. This year, it should grow by about 1.1, but the tables will turn down the road. In the next three years, the ascent will be quelled by a rate of 0.7 annually.