Wisconsin Employer Survey

The Wisconsin Employer Survey is conducted twice a year by Wisconsin Manufacturers & Commerce (WMC) — the combined state chamber and manufacturers association. The assessment provides a snapshot of where Wisconsin’s employers stand on a number of important issues and outlines their economic outlook for both Wisconsin and the United States. For the Summer 2024 edition, WMC surveyed 182 employers that make up a representative sample of its membership. Businesses of all sizes, industries and geographic locations in Wisconsin participated.

Health Care

High health care costs are hurting Wisconsin’s business climate and making employers less competitive. According to the Wisconsin Employer Survey, nearly half – 44 percent – of Badger State employers saw health care costs increase by more than 10 percent over the last year. Another 41 percent of businesses saw costs go up between six and 10 percent.

These high costs come at a time when general inflation has increased by more than 20 percent over the last few years – making it harder for businesses to invest in their employees and equipment.

Economy

A new survey of Wisconsin businesses shows a sustained negative outlook for the economy. Economic pessimism is being driven by higher costs. When asked what the top economic challenge facing their company is, the top answer by far was inflation. Thirty-five percent of businesses ranked it as the top issue followed by the workforce shortage at 25 percent and health care costs at 16 percent.

As the Federal Reserve has raised interest rates to combat historic inflation, it has slowed investment. In fact, nearly half — 44 percent — of Wisconsin employers say they have delayed or reduced the size of a project or capital expenditure because of higher interest rates.

Workforce

The latest Wisconsin Employer Survey found that hiring is slowing. Just 18 months ago, 60 percent of businesses said they planned to increase their number of employees. This summer’s survey shows only 39 percent plan to hire more workers — a 21-point drop. The reduction in hiring matches with a drop in the number of businesses struggling to hire. What was once a front-burner issue for most businesses — the workforce shortage — has seen a downward trend since 2023. When asked if they are having trouble hiring employees, 68 percent said yes — a number that peaked close to 90 percent just a short time ago.

Education

A new survey of Wisconsin businesses paints an unflattering picture of the education system in the state. According to a Wisconsin Employer Survey, nearly three-quarters of businesses think students graduating from the public K-12 system are not prepared for the workforce. Making matters worse, 56 percent of respondents said they have employees who struggle with the ability to read or do math. The unsettling new information sadly reflects the fact that more than 60 percent of students cannot read or do math at grade level in Wisconsin.