Economic landscape in Rock County has changed
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JANESVILLE — From an economic perspective, Rock County is a much different place than it was just a few years ago.
Fewer businesses, fewer employees, and—for many people—less pay.
In fact, the number of Rock County businesses, the number of their employees and their average pay is at an all-time low in the 2000s.
"Particularly on wages, I don't know that we'll ever see a return to those levels, primarily because of the type of work—assembly manufacturing—that we had in Rock County," said Bob Borremans, executive director of Southwest Wisconsin Workforce Development Board.
In 2010, employees at Rock County businesses earned an average of $36,596 annually, or about $17.59 per hour based on a typical calendar year of 2,080 hours, according to the Bureau of Labor Statistics.
That salary was not the lowest of the decade. That slot was filled in 2001, when average pay was $31,482.
It was also not the highest, checking just below 2008's average of $36,906.
Once known as a manufacturing hub with high wages to match, Rock County has suffered a more significant wage hit in the manufacturing sector, primarily because of the demise or decline of several major manufacturers in the last five years.
In 2010, the average annual wage in the county's manufacturing sector was just more than $50,000, about $24 per hour. That's a drop of nearly 12 percent from the decade's high point in 2006, when the average manufacturing wage was nearly $57,000, or about $27.40 an hour.
The decline is more significant when factored for inflation. For the $57,000 salary of 2006 to have the same buying power in 2010, it would have to exceed $61,000.
That means the 2010 Rock County wage of $50,229—when adjusted for inflation—represents a drop of nearly 23 percent.
The same can be said for all Rock County wages, although not nearly to the extent of manufacturing wages. Adjusted for inflation, the average 2010 wage of $36,596 is about 2 percent behind that paid in 2008.
Pockets of improvement
James Otterstein, Rock County's economic development director, said it's hard to argue with the Bureau of Labor Statistics numbers.
But, he said, there are pockets in Rock County where wages have increased significantly.
Examples include the plastics, food and metalworking machinery manufacturing sectors, which experienced an average annual wage growth of 33 percent since 2001.
Rock County, he said, is similar to the Upper Great Lakes region, where the manufacturing sector has trended away from a single-facility or campus environment with a collective bargaining agreement covering thousands of employees.
Smaller, privately held, niche manufacturers are filling the void, he said.
Displaced workers are becoming more accustomed to what Borremans said is a new reality of lower wages in Rock County. Most openings for manufacturing jobs these days advertise pay of $15-$18 per hour.
"Everyone wants a livable wage, but to live in a rural or smaller urban place requires some sacrifice," he said. "People are making that determination and becoming more accepting of the wages and benefits being offered."
Otterstein hesitates to say the lower wages are a new reality. Instead, he refers to them as a surviving reality.
"Particularly in the manufacturing sector, Rock County has traditionally had a two-tier wage scale," he said. "There was the automotive sector, and then there was everyone else.
"Now, the automotive sector is gone, and what's left is that second tier."
Employment levels
The number of companies doing business in Rock County has fallen every year since 2005.
So, too, has the number of workers.
In 2006—the high point of the decade—more than 68,000 people worked at 3,558 businesses in Rock County.
By 2010, 58,737 employees had jobs at 3,298 businesses.
Not surprisingly, the drop in businesses and employees has been reflected in the county's unemployment rate, which skyrocketed the month after General Motors and several of its suppliers laid off thousands of people at the end of 2008.
After posting an average unemployment rate of 6.2 percent in 2008, Rock County's rate more than doubled to 12.8 percent in 2009. It dropped to 11.1 percent for 2010 and, so far this year, is averaging about 9.6 percent.
Borremans said the tide might be slowly turning.
"Hiring is starting to pick up," he said. "In October, we had 500 more people in the workforce than we did in October 2010.
"We're still not back to where we were in 2008 and 2009, but it's a good indicator."
Dec 20, 2011 at 3:07 p.m.
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truth1 ~ Now that's what I'm talking about! Well said.
Dec 20, 2011 at 2:57 p.m.
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I agree we're not totally powerless on national and global economic issues, but how do we expect to solve them when we "choose" to participate in those same free market distortions on a local scale? It just seems like we pick our arguments for the sake of political convenience. We allow ourselves to distort the market under the guise of creating jobs, just like the people who we despise.
Dec 20, 2011 at 9:48 a.m.
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Actally "we" ARE powerless because "we" CHOOSE to be.
"Free" people who deliberately CHOOSE to be powerless.
Amazing, isn't it?
Dec 20, 2011 at 1:15 a.m.
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youkillme, "we're" not powerless.
Dec 19, 2011 at 11:22 p.m.
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What about local and state governments rewarding companies with our tax dollars, free land, zone tax credits and free dollars under the guise of forgivable loans to shift their business from state to state or comunity to community? That's just as bad. Like when Janesville is in a bidding war with Chippewa Falls for for the nuclear isotope company. This is wealth redistribution at its worst, it undermines free market competition and uses government and the power of tax collectivism to leverage cronies and private special interests. But nobody seems to notice or care to object about it at the local level where we can do something about it. To fight the corruption is to be against jobs they'll say. Instead we banter over giant national and global issues we are nearly powerless to change while turning a blind eye to this corruption happening right in our own backyard.
Dec 19, 2011 at 10:24 p.m.
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LOVE to see some posters like truth and sigma addressing why we have a jobs and an economic problem. Trade deals are nice for investors and CEOs unfortunately the great majority of Americans are neither, so now the reality is NO MIDDLE CLASS, huge defecits and debt and we are now the eternal property of China. Dont let people tell you that "its a global economy, just deal with it", that is an absolute BS argument. It IS a global economy, BUT it certainly should be and could be an even playing field, iit is NOT, not even close. Granting tax breaks ,and rewarding companies that shift thousands of middle class jobs to China that use child slave labor is now commonplace in the land of the enslaved and the home of the cowardly.
Blame politicians FIRST, every single one of them, no party is more or less to blame. I do however at least hear some Democrats railing against trade deals, and one republican, my candidate for president Buddy roemer.
Dec 19, 2011 at 10:14 p.m.
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""As long as people keep buying foreign stuff we can assure we'll never have any manufacturing places open up around here. Way to go people...did yourselves in.""
Smartest thing Sigma has EVER said, couldn't agree more!!
Dec 19, 2011 at 9:13 p.m.
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Cost of foreign product+tariff makes selling price of American-made product competitive with foreign made product.
Cost of foreign product+no tariff makes American-made product uncompetitive even WITHOUT union labor.
Dec 19, 2011 at 8:54 p.m.
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I remember a brief period in the 80's when stores had lots of stuff from about ten different countries, after that it was ALL "made in China"
I wonder why/how THAT happened.
Dec 19, 2011 at 8:51 p.m.
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Sigma- Consumers buying foreign stuff is partly to blame but the TRADE POLICIES conjured up by politicians are mostly to blame which allow products made by ultra-cheap and slave labor to be sold here without sufficient tarriffs.
First on the blame list are politicians, self-serving ones, which is almost ALL of them.
Dec 19, 2011 at 8:06 p.m.
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As long as people keep buying foreign stuff we can assure we'll never have any manufacturing places open up around here. Way to go people...did yourselves in.
Dec 19, 2011 at 6:15 p.m.
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Jvl- Yeah, 15-18 an hour....yah.....oooookay
Dec 19, 2011 at 1 p.m.
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It's changing everywhere! It's called "he world is flat". People are waiting and pinning their hopes on things returning to they way they were when infact, it's not going to happen. We've entered an entirely new age and it requires the right education to prosper in it. (don't get upset with me, I'm just the messanger!)
Dec 19, 2011 at 11:43 a.m.
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Scott Walker wouldn't know a job if it hit him over the head.
Dec 19, 2011 at 11:39 a.m.
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"Most openings for manufacturing jobs these days advertise pay of $15-$18 per hour."
Where in Rock County are these jobs advertised? Not in the Gazette or at the state Jobs website. Most places want to pay $9-10 per hour, want years of experience or a high level of education. I now drive to Whitewater for $10 an hour.
Dec 19, 2011 at 8:27 a.m.
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What, wages in this area are down? Adjusting for inflation, there was a 23% decline? But unemployment went up? Over the same time period some of our taxes went up 8 - 12%. TIF district funding continues to flow unabated to the private sector, where wages are $15 - $24 per hour. Are homeowners and small business operators the only ones feeling the pinch? Is the creation of 500 new jobs enough? Is the promise of future prosperity something we should expect or something we should pray for on Sunday morning? Perhaps, the tax fairy will come and leave a gift under your family tree. Citizens, what's still in your wallet this Christmas?
Dec 19, 2011 at 8:10 a.m.
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...but somehow the taxes on my home managed to climb...
Dec 19, 2011 at 1:02 a.m.
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Rock County needs jobs with a decent wage, benefits package. Would we like to see jobs paying $20 or more an hour; of course, but it isn't realistic any more. Jobs paying ten to fifteen dollars an hour are more realistic.
Dec 18, 2011 at 4:23 p.m.
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No need to worry. Surely at least some of the quarter million new jobs Walker has pledged to create will come to Rock County. They'll be high paying jobs too and we'll all be living fat off the hog.
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