With economic performance a key concern for many states across the U.S., Wisconsin has found itself trailing behind national averages, as highlighted in a recent report by Forward Analytics. The findings paint a picture of a state growing, yet not at the pace of its counterparts.
The report assessed Wisconsin’s economic health using six key indicators from 2017 through 2024. These include labor force participation, real GDP, population, and household income. According to Kevin Dospoy, director of Forward Analytics, Wisconsin lags behind in almost all these areas.
Indicators of Economic Growth
In a discussion with WPR’s “Wisconsin Today,” Dospoy elaborated on the economic measures considered vital for prosperity. These include median household income per capita, personal income, labor force growth, poverty rate, and real GDP. He noted, “We’re lagging other states in almost all of them.”
While the state shows growth in areas like population and GDP, these advancements are overshadowed by the broader national context where Wisconsin’s progress is less impressive compared to other states.
Historical Economic Trends
Wisconsin’s economic challenges are not entirely new. The state’s real GDP growth has consistently fallen short of the national average since 2004. Post-2015, this gap has widened significantly. Dospoy explains that the labor force growth in Wisconsin increased by just 1.1% over the past seven years, in stark contrast to the national average of approximately 5%.
Population Dynamics and Workforce Challenges
The state’s demographic shifts also contribute to its economic outlook. The proportion of residents in the prime working age of 25 to 64 is decreasing, partly due to less attraction of new residents compared to past decades. While there is an uptick in population growth, it is largely driven by those aged 65 and older, particularly in the northern rural counties.
Regional Variations Within Wisconsin
Regionally, the state shows varied economic patterns. Some northern counties exhibit strong population growth, yet none rank high in labor force expansion. Dospoy highlights, “We had seven counties in the top 20 percent of population growth…but no counties in the top 20 percent of labor force growth.”
Addressing Economic Challenges
To bridge these gaps, Wisconsin faces a broader challenge shared with other regions: housing affordability. The state’s housing market has seen a decline in affordability since 2024, with median-income households struggling to purchase median-priced homes. This issue, exacerbated by rising housing costs and interest rates, is pivotal for attracting younger demographics and retaining talent within the state.
