Economist See Uncertainty in the State's Economy

Tuesday, June 17th, 2025 -- 11:00 AM

(Milwaukee Journal Sentinel) The most common word attached to the current state of Wisconsin’s economy is “uncertainty.”  

According to the Milwaukee Journal Sentinel, in just about every sector, businesses have been forced to adjust and become flexible for any future economic headwinds.

Persistent inflation and the impact of tariffs imposed by the President since he returned to office in January have businesses and consumers struggling to plan.

“Nobody worth their salt is making any legitimate forecasts,” said Dennis Winters, chief economist with the Wisconsin Department of Workforce Development. On the surface, the state of Wisconsin’s economy is good. The unemployment rate is slightly above 3% but lower than the national average.

For the first half of the year, the state workforce participation rate has been above the national average.  But recent national reports have showed that hiring is slowing. There's worry that the trend could expand and lead to job cuts.

National surveys show that consumers are starting to feel the same uncertainty and are starting to pull back on spending on things like cars, clothing and appliances.

And a variety of factors, including high mortgage interest rates, are stalling the residential real estate markets. More pullbacks, including reduced air travel, are anticipated.

A June 10 report on state tourism said spending had slowed due to "the fading effects of pandemic recovery and the impact of persistently high inflation on consumer behavior."

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