By the numbers
Working-age adults from the age of 19 through 64 from southeastern and central counties of Wisconsin participate in the labor force at the highest rates in the state, while the northern counties participate at the lowest rates, analysis of 2023 Census Bureau data shows.
The analysis examined the labor force participation rate for the population from 19 through 64 years old. To be considered part of the labor force, an individual must either be employed or actively looking for work. Someone who is actively applying for jobs is considered unemployed, while someone who has not worked for applied for work in the last 12 months is no longer considered part of the labor force.
Statewide, the total labor force participation for 19- to 64-year-olds was 82.2%. Historically, it has fluctuated within a narrow band of about 81.4% to 82.4%.
The counties with the highest participation rates were Washington, Iowa and St. Croix, all at more than 85%. At the low end, the Menominee County participation rate was 65.5%, while the next two lowest, Forest and Burnett counties, had rates of 70.8% and 71.6%, respectively.
While headlines often focus on the unemployment rate, the labor force participation rate is a crucial indicator of the health of a labor market, as it represents the pool of available workers. Indeed, a decrease in the unemployment rate — the percentage of the labor force that is not employed — is not always a positive sign; if workers become discouraged and stop applying for jobs, they are no longer counted in the labor force, which can cause the unemployment rate to superficially decrease, even though the decline does not represent people finding jobs. A healthy labor market requires both high labor participation and low unemployment.
The top-line labor participation rate is calculated as the number of people working or looking for work divided by the total noninstitutional civilian population of people 16 and older. This includes a lot of people who may not work because they are in school or because they are retired. To measure “core” labor participation, the Bureau of Labor Statistics measures the participation rate for “prime age” workers between the ages of 25 and 54. The drawback of this metric is that the BLS does not publish it at the level of individual counties.
To approximate that measure, Badger Institute looked at the Census Bureau’s American Community Survey labor force data. The ACS provides a subdivision of the labor force for people within the ages of 19 and 64.
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