Local jobless rate soars
JANESVILLE — All the local auto industry layoffs have been counted, and the results solidify the Janesville-Beloit area's position at the top of the state's unemployment list.
It's a spot the area is not likely to relinquish any time soon, local observers predicted.
The Janesville-Beloit metropolitan area lost 2,600 jobs in January to give it an unemployment rate of 11.6 percent. That's more than double the number of unemployed last January.
In December, Janesville-Beloit had an unemployment rate of 8.1 percent.
The recent unemployment figure jumped dramatically because of layoffs at General Motors and supplier companies Lear Corp. and LSI. Most of the workers associated with the December end of sport utility vehicle production started collecting unemployment in January.
As a result of the shutdown, GM laid off 1,253 hourly workers. Lear and LSI laid off 371 and 159, respectively.
Throw in layoffs at several other companies, and the loss of 2,600 jobs is easily accounted for.
"I've said that I thought last year was about a bad as it could get, but we've already had 1,100 dislocations in the first two months of this year," said Bob Borremans, executive director of the Southwest Wisconsin Workforce Development Board.
Local unemployment rates are high and are likely to stay that way for some time, barring a dramatic turnaround in the local economy, said Doug Venable, Janesville's economic development director.
The local rate generally spiked in July, when GM typically shut its plant down for two weeks, Venable said. It also tends to grow in May, June and July, when students inflate the local labor pool.
Borremans said he's seen state projections that put Rock County's annual unemployment rate at 10.3 percent for this year, 10.7 percent for 2010 and 10.1 for 2011.
"We are the only MSA in the state for which they are projecting double-digit unemployment rates for the next three years," he said.
"Unfortunately, we're at a rate that we'd better get comfortable with."
That doesn't mean the county should accept that fate, he said.
"We've got to keep focusing on key driver industries and try to attract some new businesses to town," he said. "We've got some money to help pay for training, but it will definitely take a combined county-wide effort."
While the recent spike arrived earlier in the year than typical, it's not the highest the area has experienced.
Rock County's current unemployment rate of 11.6 is approaching the rates of 12.7 percent and 13.5 percent recorded in August and October 1986, when auto industry troubles were prevalent.
Between July 1981 and July 1983, Rock County consistently averaged an unemployment rate above 10 percent, with the high-water mark coming in March 1982 at 19.3 percent.
Economists and the state's Department of Workforce Development say the numbers for the Janesville-Beloit Metropolitan Statistical Area and Rock County are interchangeable.
With an unemployment rate of 11.6 percent, Janesville-Beloit tops state MSAs. Also with a rate of 11.6 percent, Rock County trails Rusk (12.2 percent), Taylor (12 percent) and Adams (11.7 percent) counties.
In a city-by-city comparison, however, Beloit and Janesville hold two of the top three spots for Wisconsin. Beloit had a January unemployment rate of 15.1 percent, while Janesville checked in with an individual rate of 13.1 percent. Racine was sandwiched between at 13.5 percent.
Other areas of the state felt the pain as well, with unemployment hitting double digits in three other cities: Sheboygan, West Bend and Green Bay.
The statewide unemployment rate is 7.6 percent, up from 5.8 percent a month ago.
Mar 13, 2009 at 4:01 p.m.
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Manufacturing will continue to move to regions with a large, trainable workforce that will work for the lowest possible wages. This is basic economics. Yesterday it was Japan, today China, tommorrow...maybe Africa or the Middle East? What doesn't change is that it is NOT coming back to the United States. We passed from an industrial economy to an information economy long ago. Instead of voting for pols who lie to you about bringing back low skilled, high paid jobs, retrain! The days of being able to support a family and achieve the American Dream with a high school education and a job you can be taught to do in a few hours are long, long past.
Mar 7, 2009 at 7:14 p.m.
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localboy,
your comments tell me all I need to know about you. Anyone with character is trying to support southern Wisconsin right now when it needs it the most, as opposed to tearing it down. Your words only add negativity, and I see no value in what you offer.
Mar 7, 2009 at 10:48 a.m.
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localboy, far be it from me to suggest that you actually read the article.
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"In a city-by-city comparison, however, Beloit and Janesville hold two of the top three spots for Wisconsin. Beloit had a January unemployment rate of 15.1 percent, while Janesville checked in with an individual rate of 13.1 percent."
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Since they do in fact break out the cities separately, what in blazes is your point?
Mar 7, 2009 at 10:41 a.m.
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Well said Goodboy. Put up or shut up, Localboy!
Sounds like you are nothing but a good old local boy! Don't forget to pick up your hood and sheeets from the drycleaner.
Mar 7, 2009 at 10:02 a.m.
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localboy, instead of calling people names, perhaps you could elaborate on why you believe Beloit is such a problem. And, once you've done that, perhaps you could enlighten us as to the solutions to this problem, as Beloit will always be Janesville's sister city. It ain't goin away.
Mar 7, 2009 at 9:35 a.m.
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How can I take anything serious written by somebody who goes by the name of TheJoker? I only state facts that have been given to me by my trusted inside sources. My thoughts and prayers go out to the city of Beloit. I hope they are provided deodorant soon.
Mar 7, 2009 at 8:13 a.m.
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Localboy, you are showing your true colors. How is Beloit the armpit of Rock County? Looks like they are doing quite a bit better than Janesville right now. Your elitist and racist comments demonstrate your stupidity.
Mar 7, 2009 at 6:11 a.m.
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Don't attach Janesville's numbers with Beloit's. If you are going to give the numbers, make it Rock County or the cities separated. Beloit has nothing to do with Janesville and vice versa. Beloit is the armpit of Rock County. Let us keep it that way.
Mar 7, 2009 at 3:15 a.m.
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"With GM headed into bankruptcy who will fund retiree healthcare?"
Well, I guess if that happens they will have to do what EVERY ONE ELSE has to do, right? Every one else has to save for their retirement healthcare while working, pay for it out of SS, pay for it out of their pension, all of that.
Welcome to reality.
Mar 7, 2009 at 12:16 a.m.
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Another thing that is not told in the unemployment numbers is they only factor in loose LOOKING for work! The people who have given up looking for work entirely are NOT factored in, so the rate is actually higher then the data shows.
Mar 6, 2009 at 9:40 p.m.
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Nah! Freeman Shoes has already closed their plant in Beloit.
Mar 6, 2009 at 6:20 p.m.
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I love it that most Americans need someone to blame when something goes wrong. Well then, maybe we can just convert the GM building to a shoe factory so we have something to hurl at all the people we have put in office that haven't done anything to pull us out of our dillema.
Mar 6, 2009 at 5:45 p.m.
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I don't remember GWB working at GM. He does drive a SUV and and big Chev truck. All his fault.
Mar 6, 2009 at 5:16 p.m.
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Instead of a picture of the local GM plant, wouldn't a picture of George Bush and the neocon's be more appropriate?
Mar 6, 2009 at 4:38 p.m.
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Joker is a funny man!
Yeah; they are going to be building choo choo trains there the last I heard from the Doyle pulit bureau press release!
Mar 6, 2009 at 4:19 p.m.
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Why all the doom and gloom? I am confident that our local leaders and Gov. Doyle are bringing back GM. They are still in discussions, correct? That is what they and the Gazette are saying. Right? Based on this, I now believe GM is coming back. Why is everyone else so doubtful?
Mar 6, 2009 at 3:52 p.m.
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Call Obama, he is your saviour remember. We all talked about it on here and everyone said we are basically stupid for saying that this is going to happen. Hell Janesvilles plant is only a drop in the bucket now GM is going to go BK, what next? Should I start my children in militery school so they can be ready for his youth movement.
Mar 6, 2009 at 3:30 p.m.
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Numbers and projections often lie. Hence why many "experts" never saw the credit melt down coming? The unemployment numbers are NOT taking into account the thousands who are now UNDER employed. Still have a job, but reduced hours, 3-4 day work schedules, ext. You don't need to crunch many numbers. Just talk to any business person around here. If you ask "how's business?" they will look at you like your have lost your mind. The question should be "how bad has business got for you?". It's one vicious cycle now that this mass deleveraging has begun.
Mar 6, 2009 at 2:59 p.m.
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And every time OB opens his mouth the market goes down with your -401K.
Mar 6, 2009 at 2:56 p.m.
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This is news be it bad or good I think the Gazette should cover it. I'd bet what's left of my 401k that the Gazette will be the first ones to report new businesses coming to the area. Though in previous articles they mentioned these numbers don't include people actively seeking work or who are attending school. As a result, I wonder if these rates aren't technically higher?? As much as I'd love to look through rose colored classes, I'm way past that point. Of the 89% or so people still working, many of them are below the poverty line or have to work two jobs. That's just the facts of our current situation. The average wage in Wisconsin was $14 before all this went down. I'm sure taking some of our best wages out of the state over the last year isn't helping that number. I think at this point any local or state officials are more than well aware how bad things are and will be working to find solutions. It seems like the more the federal government tries to fix this mess, the worse things get. All everyone can do is wait it out and hope for better days. Ramon noodles rock!!
Mar 6, 2009 at 2:52 p.m.
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Wow, nemesis, I didn't realize Doyle was the one who figured that SUV sales would never end. What was his job title at GM, again? I forget.
Mar 6, 2009 at 1:15 p.m.
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Okay, if 10.3 percent are unemployed, does this mean that 89.7 percent are still working? I mean, statistically this does not constitute the end of the world just yet does it? Why is our glass always pointed out to be half empty? I'm unemployed right now too but haven't lost hope. I've stopped reading the paper and listening to the alarmists on TV because I'm convinced the media causes more panic than there really needs to be.
Mar 6, 2009 at 12:26 p.m.
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With GM headed into bankruptcy who will fund retiree healthcare? I guess thounsands of retirees will find themselves relying on Medicare alone to pay their medical bills.
Mar 6, 2009 at 11:18 a.m.
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depression, the economy, and how we feel
Mar 6, 2009 at 10:13 a.m.
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I am not worried. Gov. Doyle, Mike Sheridan and Tim Cullen are working on getting GM back to Janesville and rehire everyone. There is still a great chance GM is coming back.
Mar 6, 2009 at 9:52 a.m.
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Saddest line in the whole article: "... state projections ... put Rock County's annual unemployment rate at 10.3 percent for this year, 10.7 percent for 2010 and 10.1 for 2011."
Mar 6, 2009 at 9:36 a.m.
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Another wonderful addition to Gov. Doyle's resume.
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