MADISON — The most recent state jobs report, according to the U.S. Bureau of Labor Statistics, shows Wisconsin achieved a new record high for employment and total nonfarm jobs in June 2024. The new record for total employment, released on July 17 by the Wisconsin Department of Workforce Development (DWD), breaks the record announced last month for May data.
“Over the last five years, we’ve been making smart, strategic investments to strengthen our state’s workforce, and folks, the numbers are in — our efforts are paying off,” said Gov. Tony Evers. “Whether it’s the newly announced record-high number of Wisconsinites employed, our high labor force participation, or our historically low unemployment, this is amazing news for our state. And in the Year of the Worker, we’re going to keep building on this progress to make sure our workforce is prepared to meet the needs of a 21st-century economy.”
Preliminary employment estimates for June 2024 showed Wisconsin’s seasonally adjusted unemployment rate held steady at 2.9%, which is more than a full percentage point below the national unemployment rate of 4.1% in June. The state’s labor force participation rate was 65.5% in June while the national rate was 62.5%.
● Place of Residence Data: Wisconsin’s unemployment rate remained at 2.9% in June, 1.2 percentage points below the national rate of 4.1%. Wisconsin’s labor force decreased 100 over the month and increased 4,000 over the year. The number of people employed increased 600 over the month to a record-high 3,048,600 employed.
● Place of Work Data: Total nonfarm jobs increased 9,400 over the month and increased 30,900 over the year to a record 3,048,000 jobs. Private sector jobs also increased, adding 6,700 over the month and 25,100 over the year to a record-high 2,639,000 private jobs.
“Wisconsin’s economy offers unprecedented opportunities for workers, and we are working tirelessly to support our workforce through apprenticeships, training programs, and other efforts to build skills and remove barriers to employment,” said DWD Secretary Amy Pechacek. “Connecting the hard-working people of Wisconsin with good jobs drives our economy forward.”
Wis. paces nation in hourly earning gross growth
Evers and the DWD recently announced Wisconsin ranked first in the nation for inflation-adjusted hourly earnings growth during February, March, and May 2024, and second in the nation during April, according to the preliminary data on private sector worker earnings released by the U.S. Bureau of Labor Statistics. The news comes after preliminary data show Wisconsin hit its second consecutive monthly record for employment.
“Whether we’re looking at our nationally top-ranked wage growth, our record-high employment, or our strong workforce participation, it’s clear that Wisconsinites are working and working hard, and our economy continues to have positive momentum,” Evers said. “We’ve made it a priority to build a strong 21st-century workforce to support a strong 21st-century economy, and it’s making a difference for working families across our state. This accomplishment reflects not only the dedication and resilience of our employers and our workforce, but it also shows that together we’re building a more prosperous future for our state.”
For February, March, April, and May, year-over-year statewide earnings growth totaled 7.9%, 6.4%, 4.4%, and 6.2%, respectively, based on data from the U.S. Bureau of Labor Statistics’ Current Employment Statistics (CES) program and the Consumer Price Index. The CES survey covers hourly earnings by workers at private sector establishments.
Statewide, the average hourly earnings for May 2024 totaled $33.76. The Milwaukee-Waukesha-West Allis area led the state with average hourly earnings of $34.97, followed by Madison at $34.48 per hour and Eau Claire at $31.63 per hour.
“Wisconsin’s workers and employers are benefiting from historic investments in workforce development that are building skills, boosting productivity, and helping our industries remain competitive in the dynamic world economy,” said DWD Secretary Amy Pechacek. “While this latest real hourly wage data is preliminary, it signals important progress in helping our workers and their families strengthen their financial footing and plan for the future. At the same time, Wisconsin’s workforce continues to deliver significant value to employers as our median annual wage remains close to the U.S. midpoint.”
For 2023, the most recent full year of U.S. Bureau of Labor Statistics data, Wisconsin’s median wage totaled $47,590, slightly below the U.S. median of $48,060.
Fair Labor Update: 334,114 Wisconsin workers set to gain significant bonus benefits
In a move aimed at bolstering worker protections nationwide, the U.S. Department of Labor unveiled a significant update to overtime pay regulations under the Fair Labor Standards Act (FLSA). This update comes amidst concerns that the previous salary threshold of $684 per week ($35,568 annually) has not kept pace with inflation, leaving many salaried workers vulnerable to long hours without additional compensation.
Effective July 1, 2024, the new threshold rose to $844 per week ($43,888 annually), with a further increase to $1,128 per week ($58,656 annually) starting Jan. 1, 2025. These adjustments, phased in over the next few years, are designed to align more closely with current wage trends and economic realities.
A recent analysis by personal injury law firm Bisnar Chase sheds light on the impact of these changes. Using data from the U.S. Bureau of Labor Statistics, they identified that a whopping 17 million workers will now become eligible for overtime pay under the updated thresholds. In Wisconsin, 334,114 extra workers should now be paid for working overtime.
“These updates are crucial in ensuring fair compensation and protecting millions of workers,” said Brian Chase, a partner at Bisnar Chase. He underscored the importance of these changes in promoting equitable labor practices across various industries.
The final rule is projected to redirect approximately $1.5 billion annually from employers to workers through increased pay. Despite this significant financial impact on affected workers, the adjustment represents a manageable fraction of total wages in the U.S. economy, minimizing adverse effects on employers.
Moreover, automatic updates every three years will sustain the rule’s effectiveness by adjusting thresholds to reflect economic shifts over time. This proactive approach aims to uphold robust overtime protections, ensuring they remain relevant and beneficial to an expanding workforce.
“Expanding overtime protections through the Department of Labor’s updated rule not only safeguards workers’ time and compensation but also promotes fair labor practices across industries,” Chase said. The revisions are seen as a pivotal step towards achieving a balance between economic demands and worker rights, fostering sustainable business practices nationwide.