Posted: July 8, 2009

Wauwatosa's unemployment rate is expected to continue inching upward, but it is still one of the lowest in the state and is expected to remain that way, officials say.

The latest state figures show that the city's unemployment rate rose from 6.3 percent to 6.5 percent from April to May. That's the second lowest rate among the 30 Wisconsin cities tracked by the state Department of Workforce Development. In May 2008, Wauwatosa's unemployment rate was 3.5 percent.

Betsy Falk, a labor economist with the department, said unemployment in Wauwatosa and the rest of the state is likely to grow throughout the year despite some positive economic indicators.

"(Employers) are a little reluctant to hire right away, just in case the recovery isn't as strong as they anticipated," Falk said. "So employment does tend to lag somewhat (behind other indicators of economic recovery)."

Still, Falk said the jobless rate in Wauwatosa should remain lower than that in most other communities because of its comparatively well-educated and younger work force.

According to the most recent data from the U.S. Census Bureau, about 58 percent of Wauwatosa residents in 2007 had at least an associate degree. In Milwaukee, only 26 percent of residents had the same level of education.

"That educational attainment number is one of the best indicators of how your city is doing," Falk said.

Wauwatosa also averages fewer residents older than 55 compared to other area cities, Falk said. Federal data based on current economic conditions indicates that the length of unemployment for those 55 or older is 30 weeks, while younger workers can usually find a job within 21 weeks of being laid off.

Local employers make cuts

Still, some large employers in the city have made job cuts.

For example, American General Life Cos. - owned by AIG - announced 37 layoffs late last month.

Grede Foundries let go 81 employees in January. The Wauwatosa-based company filed for Chapter 11 bankruptcy June 30; a spokesman for the company said there are no further job reductions expected.

Harley-Davidson Motors announced in January that it will combine its Wauwatosa production facility with another in Menomonee Falls next year. The company did not return a call for more information.

However, Falk said cuts at Wauwatosa's larger employers may not affect the unemployment rate much, since those businesses draw employees from outside the city.

Businesses get creative

Cuts at smaller employers are more likely to affect the city's jobless rate.

Chris Leffler, chairman of the Village of Wauwatosa Business Improvement District, said layoffs at small businesses in the area have been minimal. Store owners are more likely to reduce employees' hours before cutting positions, he said.

"There's always ways to tighten the belt," Leffler said.

Village businesses are both suffering and benefiting from the tough economy, he added. While residents staying close to home during the summer months are more likely to frequent Village businesses, layoffs at large employers mean fewer patrons during weekday lunch hours.

Leffler, owner of Leff's Lucky Town, said times are especially competitive for area eateries.

"Let's face it - as a restaurant person, you've got to fight with the $5 foot-longs at Subway," he said.

Some businesses are finding new opportunities to increase revenue. Leffler said a few Village restaurants have started doing outside catering.

"It all amounts to doing different things to make ends meet," he said.

He sees more empty storefronts than normal, but believes the Village is still economically sound.

"It's a scary time. It's frightening. I think we'll all get through this," he said, adding, "In time we'll get it back because the Village is a strong area."

BY THE NUMBERS

5.7 percent

Madison's May unemployment rate, the lowest in the state

6.8 percent

Brookfield unemployment rate

9.3 percent

West Allis unemployment rate

11.4 percent

Milwaukee unemployment rate

8.9 percent

Wisconsin unemployment rate

9.4 percent

national unemployment rate