As we approach 2025, Wisconsin’s economy is poised for a year of notable transitions. From shifts in employment patterns to potential challenges brought on by new policies, the state’s economic landscape is evolving. Here’s what residents and businesses should know.
Economic Growth: A Mixed Bag
Wisconsin’s economy is expected to see modest growth in 2025, with personal income projected to rise by 4.6% nominally and 2.5% in real terms after adjusting for inflation. However, GDP growth is expected to slow to 1.6%, signaling a more cautious expansion.
Labor Market Slowdown
The state’s labor market, while resilient, will experience deceleration. Employment growth is forecasted at just 0.4%, with 82,867 new jobs created between 2023 and 2025. Despite the slower pace, Wisconsin’s unemployment rate will remain below the national average but is projected to rise to 3.6% by 2027.
Industry Shifts
Several key sectors are set to undergo significant changes:
- Education and Health Services: This sector will surpass others as Wisconsin’s second-largest employer.
- Leisure and Hospitality: With a robust 5.25% growth, this sector will add over 15,000 jobs.
- Manufacturing and Trade: These sectors face challenges, with job losses anticipated.
Looking Ahead
While 2025 promises opportunities for growth in certain industries, the state faces substantial challenges. Both businesses and workers should stay informed and prepared for the evolving economic and policy environment. Wisconsin’s resilience will depend on navigating these shifts thoughtfully and collaboratively.
