Though economists warn against reading too much into the figures, the number of people getting laid off in the state has dropped sharply from last year.
Last year, mass layoffs in Wisconsin neared 10,000 for the first time since 2009, a spike several observers attributed to the global economic slowdown and decline in commodity prices. But barring several large announcements in the next month, the state won’t come close to that level this year. So far this year, the state has had about 7,000 such layoffs announced.
Economic analysts caution the layoffs figures aren’t a solid economic indicator, saying they more often reflect conditions at a particular company and its industry rather than the overall state economy. They also amount to a small percentage of the overall jobs in the state and don’t account for hirings.
“It’s only telling me half the story,” said Sara Walker, chief economist and senior vice president at Associated Bank. “It doesn’t tell me how many jobs are being created.”
Or as Wisconsin Taxpayers Alliance President Todd Berry said, looking at just layoffs or closings “doesn’t give you any context.”
The figures come from a Department of Workforce Development database of mass layoff or closure notices, which state law requires some companies to file with the agency. Businesses with more than 50 employees generally are required to send DWD those notices 60 days before making significant reductions in their workforce or closing a facility with at least 25 employees.
The layoffs numbers in the DWD database are tied to the date of the notice, not when the layoffs actually take place. As the figures are planned layoffs, the actual number of people getting laid off can be lower, and some of the employees could get re-located.
Or there’s the case of the Milwaukee Center for Independence, whose announced layoffs of 1,062 are by far the largest in the DWD database this year. The company, which hires in-home caregivers, lost a major contract this year. But the vast majority of those caregivers are likely to care for the same people but get paid by different organizations to do so.
MCFI spokeswoman Nan Bialek said those caregivers are “pretty much guaranteed” to get hired, especially given the shortage of people in that field.
Brian Jacobsen, the Menomonee Falls-based chief portfolio strategist for Wells Fargo Fund Management, said that’s one example of re-employment opportunities for those who face layoffs.
“This is not to diminish the anxiety employees may experience as it is clearly nerve-wracking with the uncertainty, but as an economic indicator, it’s next to useless,” he said.
The layoff announcements this year have affected 6,925 employees, the DWD says. During the recession years of 2008 and 2009, that figure topped 17,500 each year. But the levels dropped below 7,000 in 2010 and had stayed below that number until last year, when 9,630 people were affected by mass layoff notices.
DWD spokesman John Dipko noted the caveats that come with tallying up the layoff figures and pointed to other indicators showing that “Wisconsin is working, employers are hiring and the economy is growing.” That includes the state unemployment rate of 4.1 percent, which is a 15-year low, and a labor participation rate that significantly outpaces the national rate.
“As was the case last year, those who are affected by workforce reductions are finding new opportunities quickly in today’s strong labor market, with employers reaching out to us and our regional workforce partners to recruit these talented and skilled workers for good-paying opportunities,” Dipko said in a statement.
But Senate Minority Leader Jennifer Shilling said “every job lost to outsourcing and mass layoffs is a blow to our state.”
“We need to stop giving Republican tax subsidies to companies that ship jobs overseas and start protecting Wisconsin workers,” the La Crosse Dem said.
Several of the companies that announced the most layoffs this year are in the manufacturing sector. Walker, the Associated Bank economist, said that’s partly due to the belt-tightening that many companies have had to go through as they face a period of sluggish global growth.
“What you see is pressure on companies — whether it’s a bank or manufacturer — to keep costs under control, and that’s not going to go away,” Walker said.
Companies announcing layoffs include Manitowoc Cranes, whose closure of a plant in its namesake city affected 528 employees, though some are staying in the company or are being relocated. Manitowoc Co. spokesman Ion Warner said in August the company reached that decision because “the market conditions were quite poor.”
In Brillion, the parent company of the Brillion Iron Works, Inc. foundry announced 340 layoffs, which amounts to about 10 percent of the roughly 3,000 people who live in the city.
Also topping the list is Kraft Heinz, which announced on November 2015 it was relocating the longstanding Oscar Mayer operations from Madison. The company filed notices with DWD this year saying it would lay off 702 people.
Other companies announcing significant layoffs included:
*Walmart, whose four store closures in Wisconsin will affect 487 people;
*Tyson Foods, Inc., which is closing a plant in Jefferson and laying off 248 people;
*Graphic Packaging International Inc, whose plant closing in Menasha will affect 230 workers;
*Masonite Corp., which is closing a plant in Algoma and laying off 180 people;
*and New Berlin’s Mexican Accent LLC, a maker of tortillas and chips that’s closing its plant in New Berlin and laying off 155 people.
Todd Filter, a regional vice president for Milwaukee-based employment firm ManpowerGroup, said the layoffs this year are more indicative of the companies’ industries and the global economy “versus anything that’s happening here locally.”
One positive sign, he said, is the manufacturing companies working with Manpower that in recent months have decided to hire more people — or turn some of its temporary hires into permanent ones.
“That’s an indicator that they’re willing to lock in a fixed cost … that there is some confidence out there,” he said.
— By Polo Rocha
