DWD: Secretary Gassman announces significant drop in May unemployment rate

Unemployment rate continues downward trend, reaches lowest point in over a year

MADISON – Department of Workforce Development (DWD) Secretary Roberta Gassman announced today that Wisconsin’s May unemployment rate dropped significantly to 7.7 percent, its lowest level since early 2009, and that Wisconsin added over 40,000 jobs in May, demonstrating its continued economic recovery.

“For the second month in a row, Wisconsin has experienced a decrease in its unemployment rate, and the drop in May was significant,” Secretary Gassman said. “We have worked hard to help add tens of thousands of jobs to the state in recent months. As a result, we continue to see steady gains and positives signs of economic recovery throughout the state. We will continue working hard to add jobs and help businesses and workers recover from the worst national economic crisis since the Great Depression.”

Unemployment Rate Drops

Wisconsin’s unemployment rate dropped by 0.5 percent to 7.7 percent in May from 8.2 percent in April, lower than the May 2009 rate of 8.6 percent (not seasonally adjusted) and at its lowest level since January 2009. Adjusting for seasonal factors, the state unemployment rate fell to 8.2 percent from 8.5 percent in April, lower than the May 2009 rate of 8.9 percent and at its lowest level since March 2009.

Wisconsin remains under the national unemployment rate of 9.3 percent (not seasonally adjusted) and 9.7 percent (seasonally adjusted). Wisconsin’s rates are not only lower, but declining faster than the national rates. The state unadjusted rate declined by 0.5 percent compared to 0.2 percent nationally.

Wisconsin’s unemployment rate has consistently been much lower than all other manufacturing-heavy Midwest states including Illinois, Indiana, Michigan and Ohio. While the May rates for other states are unavailable for a comparison, Wisconsin’s seasonally adjusted April rate of 8.5 percent was1.5 percent below Indiana’s rate, 2.4 percent below Ohio’s rate, 2.7 percent below Illinois’ rate and 5.5 percent below Michigan’s rate.

Jobs Numbers

Wisconsin added 40,200 jobs in May, including 6,500 construction jobs and 3,300 manufacturing jobs, without seasonal adjustment. Approximately 29,900 jobs were gained in service sectors including trade, transportation, leisure and hospitality, and professional and business services.

Wisconsin held steady on total job numbers, with seasonal adjustment, reflecting the addition of 32,000 jobs since January 2010. On a seasonally adjusted basis, Wisconsin’s job growth has outpaced the nation since late 2009. Wisconsin has added jobs at a rate of 1.3 percent, compared to 0.8 percent nationally from December through May.

“For Governor Doyle, nothing is more important than helping our businesses create jobs and giving our workers the opportunities to get those jobs,” Secretary Gassman said. “With some of the most powerful economic development tools in the country, he is helping Wisconsin companies expand and create thousands of new jobs in communities across the state. The addition of tens of thousands of jobs in the first months of 2010 clearly demonstrates these tools’ success.”