The latest WMC survey finds fewer businesses are struggling to find workers amid high expectations for profitability in the coming six months.
Wisconsin Manufacturers & Commerce yesterday released results from the Wisconsin Employer Survey, which tapped 153 executives by email and traditional mail at companies of all sizes from across the state. It found 63% of respondents were struggling to find workers, which is down from 72% one year ago and 68% in the summer. It’s far below the peak of 88% from winter 2022.
WMC notes the last time it was this low was in the winter of 2015, when 63.9% of respondents were struggling to fill positions.
Kurt Bauer, president and CEO of the association, says the “most probable explanation” is that demand for workers has slowed. Still, the labor shortage remains the top policy issue for respondents, tied with health care, the survey found.
While these challenges for businesses continue, WMC notes profitability results and expectations are strong. Eighty-five percent of respondents say their company was profitable in the last six months of 2024, and 96% predict they will be profitable over the first half of this year.
“Clearly, business leaders are more optimistic entering 2025 than they were a year ago, despite the reduced demand for workers,” Bauer said.
Meanwhile, respondents showed “modest optimism” on the state and national economy. The survey found 26% say the state economy is strong — up from 22% at this point last year — while 68% say it’s moderate and 6% say it’s weak. Just 18% say the U.S. economy is strong, though that’s improved from 10% last year. Another 61% say the U.S. economy is moderate and 19% say it’s weak.
Looking ahead, 63% expect the state’s economy will grow over the next six months while 34% expect no change. At the national level, 75% of respondents expect to see growth over the first half of 2025 while 21% expect it to remain “flat.”
When asked about the one thing the state government could do to help their business, 41% pointed to making health care more affordable. Twenty-three percent said reduce taxes, another 23% said reduce or reform regulations, 4% each said education reform and reduce spending.