Employment growth is a persistent concern for southeastern Wisconsin, as Milwaukee’s labor market has weakened relative to six comparable metro areas, a new report shows.
The Metropolitan Milwaukee Association of Commerce, along with the Milwaukee 7 and the Marquette University’s Center for Applied Economics, yesterday issued the Metro Milwaukee Economic Insights report. It was co-authored by Prof. Grace Wang, who directs the center, and others at the university.
Unemployment in the seven-county M7 region averaged 3.9%, below the national rate of 4.4%, and its average labor force grew 0.4% between January and August of this year compared to the same period of 2025. By comparison, five of the six “peer metros” included in the report saw labor force declines for that period.
“However, the region’s labor market is showing relative weakness” through other measures, authors wrote.
By August of this year, metro Milwaukee payroll employment declined 0.3% over the year while the state overall grew by 0.6% and the nation grew by 0.3%.
At the same time, the unemployment rate for the M7 was above the average for its six peer metros, 3.6%. And it fell from the second-lowest among peers last year to fifth-lowest this year.
Those comparable metro areas include Cleveland, Columbus, Indianapolis, Kansas City, Pittsburgh and St. Louis.
“Employment trends also vary considerably across industries, with education and health services, as well as other services, lagging statewide growth,” authors wrote, adding “the region continues to show signs of stability, but employment growth remains a concern.”
Employment in education and health services rose by just 0.3% from January to August in the metro Milwaukee area, far below the state overall at 1.6% and the peer metro average of 1.1%. Average construction employment for metro Milwaukee rose 3.9% during that period relative to the prior year, below the statewide increase of 6%.
Meanwhile, retail employment dropped by 2.9% and other services declined by 1.8% over the same period. Authors note those are larger drops for these industries than any of the six peer metros experienced.
“The data suggest that M7’s labor market has not been strong enough to absorb new entrants into the workforce at the same pace as in previous years,” authors wrote. “Sustaining labor force growth while accelerating job creation should remain a key regional priority.”
