Wednesday, February 3, 2010

Waukesha To Be Regional Jobs Winner: Will Water Add To The Imbalance?

SEWRPC will share the following draft study chapter and information Thursday at 4 p.m.with its Environmental Justice Task Force - - 540 1st St., Milwaukee at the Independence First building.


These draft findings by UWM experts show Waukesha County's future job market growing faster than Milwaukee's, so the Milwaukee Common Council and Mayor need to think through very carefully the wisdom and formulas of selling an economic asset - - Lake Michigan water - - to a Waukesha that has said it intends to add substantially to its boundaries and population through annexation and wider water service territory.


The UWM analysis was added late in the game as a demand by the Task Force after SEWRPC's water supply advisory committee spent nearly four years looking at water supply options - - but had not considered the socio-economic implications of moving Lake Michigan water to Waukesha and other parts of the region.


It's unclear if the UWM findings will change the advisory committee's draft recommendations that Waukesha get Lake Michigan water.





Chapter 3


JOB DISTRIBUTION TRENDS AND FORECASTS



INTRODUCTION


As part of the socio-economic impact analysis, the following question regarding implementation of the RWSP and its impact on job distribution patterns was proposed by SEWRPC:


  • What impact, if any, would implementation of the regional water supply recommendations have on the overall distribution of job locations in the Region?


Access to a reliable, sustainable water supply is necessary not only for residential development, but also for commercial or industrial development and, therefore, has a potential impact on the distribution of jobs.


In addition to the population forecasts developed in SEWRPC’s Land Use Planning process, detailed job forecasts were developed to determine the existing and projected number, distribution, and types of jobs in southeastern Wisconsin

. Like previous SEWRPC forecasts, these forecasts were based on known conditions and trends, using data, including demographic data from the decennial U.S. Census; the forecasts set forth anticipated future conditions for the year 2035. The job projections were developed with corresponding population forecasts, to be used as the basis for current SEWRPC planning efforts, including the Regional Water Supply Plan. Similar to the population forecasts, SEWRPC projected a range of future employment levels—low, intermediate, and high—for the Region. The projection range was developed due to the high degree of uncertainty that coincides with any effort to forecast social or economic outcomes. The intermediate projection is considered the most likely to be achieved for the Region and was selected for use in the Regional Water Supply Plan (RWSP).


In order to satisfactorily identify and understand potential negative socio-economic impacts that may arise from the recommendations set forth in the RWSP, CED evaluated historic job patterns within the region and SEWRPCs job projections that were developed for the RWSP, for the communities selected for analysis.


JOB GROWTH PATTERNS AND TRENDS IN SOUTHEASTERN WISCONSIN


Existing Conditions in Southeastern Wisconsin

Historic job patterns in southeastern Wisconsin have been studied by numerous institutions and organizations, including SEWRPC and the CED. As part of its regional land use planning program, SEWRPC has collected data and reported on trends in jobs and employment in southeastern Wisconsin since its inception in 196_. CED and several other academic institutes and centers also study and report on local and regional employment trends. Many of these reports have come to similar findings, that over the past 40 to 50 years, there has been a significant change in job sector employment, from an economy that relied predominantly on manufacturing toward an economy reliant on services. Additionally, while job growth has slowed significantly in the historic urban centers, particularly from the City of Milwaukee and Milwaukee County, there has been significant job growth in the suburban communities and counties.


The movement from a manufacturing-based economy toward a service- or skills-based economy is prevalent throughout the United States. Wisconsin, and southeastern Wisconsin, is rather unique in that manufacturing continues to play a significant role in its economy. In comparison to many service sector jobs, most manufacturing jobs generally do not require extensive education or training. However, this is changing as the economic structure is changing, and the need for education and training will continue to impact southeastern Wisconsin’s ability to compete in the global marketplace.


At the regional level, studies indicate that both the economic and geographic shift has had a very negative impact on populations within the urban centers, particularly in the inner City of Milwaukee. As job centers shifted from the urban core to the suburbs, job accessibility has become a significant barrier to employment for those who do not have a personal vehicle, due to the lack of public transportation options. Additionally, as more and more jobs require post high school training or education, many of these jobs are “inaccessible” to those that either lack education or skills or lack the resources to obtain the skills.


A study by the CED focuses specifically on the impact that this historic shift has had on inner city people in Milwaukee

. Much of the study focuses on a geographic subset of the inner city, the “Enterprise Community”, the area most plagued by problems of poverty, crime, and joblessness. In 2000, unemployment in the inner city was about four times higher than the metro Milwaukee average. From 1970 to 2000, the population in the "Enterprise Community" dropped by 45 percent. This area has been plagued by joblessness, and in 2000," 59 percent of the working age population was either unemployed or not in the labor force, twice the suburban average.


Another study

published in 1998 by the CED looks at the City of Milwaukee and metro Milwaukee’s economic performance over time, as well as in comparison to 13 other large, Frostbelt cities and metropolitan areas. Most identified “Frostbelt” cities and regions include other Great Lakes or “Rust Belt” cities with similar histories. Key indicators showed that the metro Milwaukee region has experienced moderate comparable job growth between 1970 and 2000, and has done relatively better at conserving its manufacturing base than most big Frostbelt cities. Like all central cities in the Frostbelt, the City of Milwaukee has declined markedly since the late 1960s as the employment hub of its region, but in relative terms, the City of Milwaukee has done substantially better than most Frostbelt cities in holding a share of regional employment.


In 1998, metro Milwaukee had the 5th lowest unemployment rate of the 14 regions; the city of Milwaukee had the 5th lowest among the cities. However, the black unemployment rate doubled in both the Milwaukee metropolitan area and city between 1970 and 1990, and the disparity between black and white unemployment rates in metropolitan Milwaukee remains the widest in the Frostbelt, as has been the case since 1970.


The Great Recession

The global marketplace, as of 2009, is in the second year of what has now been dubbed the Great Recession. Although the long-term impact on southeastern Wisconsin’s economy is unknown, recent employment data indicates that the impact on southeastern Wisconsin is about average for the United States. Economic indicators are starting to show that the Great Recession is likely to have a greater impact on minority and ethnic populations, particularly black and Hispanic persons.


The Employment and Training Institute (ETI) at the University of Wisconsin Milwaukee conducts a periodic survey on job openings in southeaste rn Wisconsin; its most recent survey was completed in May 2009

. In this study, ETI concluded that there is currently an unprecedented job gap in the seven-county region between people seeking work and jobs available, and that the gap between job seekers and full-time openings is 13 to 1. This gap is most severe in the City of Milwaukee’s inner city where there are about 25 job seekers for each full-time job opening.


Based on the results of the 2009 survey, ETI concluded that technical or skills training are key for a majority of jobs available in the region and that the labor market for unskilled workers lacking a high school diploma or occupation-specific work experience has disappeared. In comparison to the prior ETI survey (May 2006), there were about 6,550 full-time openings for unskilled workers; in 2009, there were only 500 openings. Additionally, demand for unskilled, semi-skilled, and skilled blue collar workers has seen the greatest decline between 2006 and 2009, and full-time job openings in manufacturing saw their lowest point since the ETI job survey began in 1993.


County Level Job Distribution in Southeastern Wisconsin

Historic job growth patterns indicate that there has been trend toward decentralization of jobs from the historic economic and urban centers to the outlying counties between 1960 and 2000. Tables 3-II and 3-II show historic job growth patterns between 1960 and 2000 for the counties in southeastern Wisconsin, and Charts 3-II and 3-III show the changes in job distribution patterns by county. In 1960, there were about 673,000 jobs in southeastern Wisconsin; by 2000, this had grown to about 1,222,800, an increase of 549,800 jobs or 82 percent growth. Throughout this period, the types of jobs and the economy in the region had shifted from the historic reliance on manufacturing as the most dominant employment sector to the service industry and retail trade as the dominant industries. Manufacturing does, however, continue to play a significant role in the region’s economy and manufacturing jobs were the second highest sectoral category in 2000. Technical Report No. 10, The Economy of Southeastern Wisconsin, July 2004 provides a detailed history and analysis of jobs by sector within the region.

Table 3-I: Job Distribution for Southeastern Wisconsin


County

1960

1970

1980

1990

2000


Jobs

%

Jobs

%

Jobs

%

Jobs

%

Jobs

%

Kenosha

42,200

6.3

42,100

5.4

54,100

5.7

52,200

4.6

68,700

5.6

Milwaukee

503,300

74.8

525,200

66.9

583,200

61.5

609,800

53.3

624,600

51.1

Ozaukee

10,200

1.5

21,300

2.7

28,200

3.0

35,300

3.1

50,800

4.2

Racine

49,900

7.4

64,600

8.2

81,200

8.6

89,600

7.8

94,400

7.7

Walworth

19,600

2.9

26,400

3.4

33,500

3.5

39,900

3.5

51,800

4.2

Washington

15,200

2.3

24,300

3.1

35,200

3.7

46,100

4.0

61,700

5.0

Waukesha

32,600

4.8

81,000

10.3

132,800

14.0

189,700

16.6

270,800

22.1

Region

673,000

100.0

784,900

100.0

948,200

100.0

1,143,700

100.0

1,222,800

100.0


Source: Bureau of Labor Statistics and the US Census Bureau


Table 3-II: Job Growth in Southeastern Wisconsin


County

1960

2000

1960 to 2000




Change

Percent

Compound Annual Growth Rate

Kenosha

42,200

68,700

26,500

62.8

1.23

Milwaukee

503,300

624,600

121,300

24.1

0.54

Ozaukee

10,200

50,800

40,600

398.0

4.10

Racine

49,900

94,400

44,500

89.2

1.61

Walworth

19,600

51,800

32,200

164.3

2.46

Washington

15,200

61,700

46,500

305.9

3.56

Waukesha

32,600

270,800

238,200

730.7

5.44

Region

673,000

1,222,800

549,800

81.7

1.50


Source: Bureau of Labor Statistics and the US Census Bureau


Along with population growth, job growth among the seven counties has changed over the 1960 to 2000 period. In 1960, the vast majority of jobs, about 75 percent, were located in Milwaukee County. Similar to changes in population distribution, by 2000, Milwaukee County’s share of regional jobs had declined to about 51 percent. Although Milwaukee County had gained about 121,300 jobs, or the second highest number of jobs over this time period, its share of jobs steadily declined during this period and its average annual growth rate, factored over the 40 year period, was approximately 0.54 percent or less than the regional 1.5 percent average.


pastedGraphic.pdf

Source: Bureau of Labor Statistics and the US Census Bureau


Although each County experienced some level of job growth, parts of the Region have fared better than others. Similar to its population growth, Waukesha County experienced a significant increase in the number of jobs and in its share of regional jobs. In 1960, Waukesha had about 32,600 jobs, or less than 5 percent of the regional share; by 2000, the number of jobs increased, on average, by about 5.44 percent annual growth rate to 270,800, or about 22 percent of the regional job share. This is a gain of about 238,200 jobs or about 43 percent of the regional job growth; Waukesha County’s overall growth since 1960 was 730 percent.

pastedGraphic_1.pdf

Source: Bureau of Labor Statistics and the US Census Bureau




pastedGraphic_2.pdf

Source: Bureau of Labor Statistics and the US Census Bureau


Ozaukee, Walworth, Washington Counties also had significant gains in the number and share of jobs. Ozaukee County’s annual growth rate was about 4.1 percent, and its share of regional jobs increase from 1.5 percent to over 4 percent. Washington County’s annual job growth rate over the 40 year period was 3.56 percent, and its share of regional jobs doubled from about 2.3 percent to 5 percent. Walworth County’s share grew from 2.9 to 4.2 percent, with an average annual growth rate of 2.56 percent.


Comparatively, Kenosha and Racine Counties had modest increases, with average annual growth rates of 1.23 and 1.61 percent respectively, similar to the average regional growth rate of 1.5 percent. Although Kenosha County’s job growth tended to fluctuate between 1960 and 2000, it gained about 26,500 jobs over this period, about a 63 percent increase. Racine County gained about 44,500 jobs over this time period, an increase of 89 percent.


Labor Force Distribution in Southeastern Wisconsin

Similar changes are reflected in the historic labor force pattern for the region. Between 1960 and 2000, the region’s labor force had increased from about 636,900 to 1,008,400 people, a gain of about 371,500 workers or 58 percent. In 1960, almost 68 percent of the regional labor force resided in Milwaukee County; and although the civilian labor force in Milwaukee County grew by about 37,500 people, by 2000, its share had declined to 46.5 percent of the regional labor force. Milwaukee County’s labor force increased steadily between 1960 and 1990, but declined from 479,374 to 469,257 workers between 1990 and 2000. Although its total labor force increased by about 8.7 percent, the annual labor force growth rate for Milwaukee County was only 0.21 percent over the forty year period, compared to a 1.16 percent average for the Region (see Tables 3-III and 3-IV). All other counties fared better than Milwaukee County, and surpassed the regional average.



Table 3-III: Civilian Labor Force Distribution for Southeastern Wisconsin


County

1960

1970

1980

1990

2000


Workers

%

Workers

%

Workers

%

Workers

%

Workers

%

Kenosha

39,726

6.2

47,171

6.4

59,625

6.8

64,192

6.9

77,709

7.7

Milwaukee

431,746

67.8

454,085

61.7

478,184

54.6

479,374

51.3

469,257

46.5

Ozaukee

14,438

2.3

22,105

3.0

34,468

3.9

40,114

4.3

45,219

4.5

Racine

54,947

8.6

68,255

9.3

84,330

9.6

89,356

9.6

96,861

9.6

Walworth

20,444

3.2

26,345

3.6

34,727

4.0

39,642

4.2

51,861

5.1

Washington

17,384

2.7

25,727

3.5

42,044

4.8

52,106

5.6

66,496

6.6

Waukesha

58,216

9.1

92,390

12.6

142,774

16.3

169,369

18.1

200,991

19.9

Region

636,901

100.0

736,078

100.0

876,152

100.0

934,153

100.0

1,008,394

100.0


Source: US Census Bureau


Table 3-IV: Civilian Labor Force Growth in Southeastern Wisconsin


County

1960

2000

1960 to 2000




Change

Percent

Compound Annual Growth Rate

Kenosha

39,726

77,709

37,983

95.6

1.69

Milwaukee

431,746

469,257

37,511

8.7

0.21

Ozaukee

14,438

45,219

30,781

213.2

2.90

Racine

54,947

96,861

41,914

76.3

1.43

Walworth

20,444

51,861

31,417

153.7

2.35

Washington

17,384

66,496

49,112

282.5

3.41

Waukesha

58,216

200,991

142,775

245.3

3.15

Region

636,901

1,008,394

371,493

58.3

1.16


Source: US Census Bureau






pastedGraphic_3.pdf


Source: US Census Bureau


pastedGraphic_4.pdf

Source: US Census Bureau



Between 1960 and 2000, Waukesha County’s share of the regional civilian labor force significantly increased from 58,216 to 200,991 people or from 9.1 to 19.9 percent of the regional share. Waukesha County’s civilian labor force experienced, on average, a 3.15 percent annual growth rate over the forty year period. Washington County experienced the highest growth rate over the forty year period (3.41 percent average annual growth), and its labor force saw the second highest overall gains, with 49,112 people. The labor force growth rates in Ozaukee and Walworth Counties were higher than the regional average, with 2.90 and 2.35 percent respectively, and the growth rates in Kenosha and Racine Counties were similar to the regional average, at 1.69 and 1.43 percent respectively.


Unlike jobs that are tied to a geographic location, the labor force is mobile, and indicates place of residence rather than place of job. Although both Milwaukee County’s labor force population and general population decreased slightly between 1990 and 2000, its job growth continued to increase, from 609,800 to 624,600 jobs.


Table 3-V: Year 2000 County of Work for Workers in Southeastern Wisconsin


County

Total Number of Workers

Worked in County of Residence

Worked Outside County of Residence

Worked in Milwaukee County


Number

Percent

Number

Percent

Number

Percent

Kenosha

72,053

40,489

56.2

31,564

43.8

2,260

3.1

Milwaukee

427,620

345,163

80.7

82,457

19.3

345,163

80.7

Ozaukee

43,555

22,469

51.6

21,086

48.4

15,057

34.6

Racine

89,494

61,020

68.5

28,474

31.5

12,906

14.5

Walworth

48,172

30,545

63.4

17,627

36.6

2,290

4.8

Washington

63,610

32,066

50.4

31,544

49.6

14,335

22.5

Waukesha

192,602

119,461

62.0

73,141

38.0

61,038

31.7

Region

937,106

651,213

69.5

285,893

30.5

453,049

48.3

Total Non-Milwaukee County Residents

509,486

306,050

60.0

203,436

40.0

107,886

21.2


Source: US Census Bureau


The Census also collects data on place of work and residence locations for workers by county. Table 3-V indicates that in 2000, approximately 70 percent (or 651,213) of the workers in southeastern Wisconsin resided within the same county that they worked. Of the workers that resided in Milwaukee County, 81 percent of working residents (or 345,163 workers), worked within Milwaukee County, while about 19 percent of the workers commuted outside of Milwaukee County for work. The other counties varied greatly in the number of residents who commuted outside of the county to work, but each of the outlying counties had a greater percent of workers working outside of their resident county. Excluding Milwaukee County workers, about 60 percent of the regional workers worked within their county of residence, while 40 percent commuted outside for work.


In 2000, about 48 percent of the regional workers worked in Milwaukee County. A significant portion of workers from outside of Milwaukee County worked within the County. In 2000, approximately 107,886 workers from the surrounding regional counties commuted into Milwaukee County for work, or about 21.2 percent of the regional workers that reside outside of Milwaukee County. About 34.6 percent of Ozaukee County workers and 31.7 percent of Waukesha County workers commuted to Milwaukee County for their jobs.


Community Level Job and Labor Force Distribution in Southeastern Wisconsin

The Bureau of Labor Statistics (BLS) and the US Census Bureau collect official data on jobs and the labor force. The BLS publishes a quarterly count of employment and wages reported by employers that covers about 98 percent of U.S. jobs through the Quarterly Census of Employment and Wages (QCEW); this data, however, is only available at the county, MSA, state and national levels by industry. Although data on the number of jobs is not readily available from either the BLS or the Census at the “Place” level, data on the labor force (number of people working) is available through the Census.

Table 3-VI: Civilian Labor Force Distribution for Selected Communities in Southeastern Wisconsin


Community

1960

1970

1980

1990

2000


Workers

%

Workers

%

Workers

%

Workers

%

Workers

%

Kenosha

20,407

3.2

31,950

4.0

37,344

4.3

38,996

4.2

45,875

4.5

Milwaukee

316,862

49.8

313,174

42.5

306,547

35.0

301,032

32.2

282,823

28.0

Oak Creek

3,297

0.5

5,534

0.8

8,850

1.0

11,228

1.2

16,774

1.7

Port Washington

2,428

0.4

3,395

0.5

4,444

0.5

5,131

0.5

5,746

0.6

Racine

36,293

5.7

39,310

5.3

41,126

4.7

40,502

4.3

38,679

3.8

Brookfield

6,981

1.1

12,582

1.7

16,967

1.9

18,061

1.9

19,353

1.9

Cedarburg

1,988

0.3

3,195

0.4

4,628

0.5

5,586

0.6

5,792

0.6

Elm Grove

1,542

0.2

2,728

0.4

3,150

0.4

2,909

0.3

2,746

0.3

Germantown*

NA

NA

2,675

0.4

5,795

0.7

8,057

0.9

10,552

1.0

Grafton

1,344

0.2

2,342

0.3

4,410

0.5

5,513

0.6

6,019

0.6

Muskego*

NA

NA

4,499

0.6

7,481

0.9

9,612

1.0

12,237

1.2

New Berlin

5,508

0.9

10,738

1.5

16,527

1.9

19,630

2.1

21,656

2.1

Saukville

NA

NA

NA

NA

1,728

0.2

2,074

0.2

2,558

0.3

Waukesha

8,199

1.3

17,073

2.3

26,734

3.1

32,400

3.5

37,056

3.7

Region

636,901

100.0

736,078

100.0

876,152

100.0

934,153

100.0

1,008,394

100.0


Source: US Census Bureau

Notes:

Year 1960: Total population aged 14 years and older participating in labor force.

Years 1970 to 2000: Total population aged 16 years and older participating in labor force.

Data for the year 1960 is not available for the Villages of Germantown and Muskego which incorporated in 196_ and 1964 respectively.

Based on population, economic data is not available for the Village of Saukville for 1960 or 1970.



Table 3-VII: Year 2000 Labor Force Composition for Selected Communities in Southeastern Wisconsin


Community

Total Population

Total Population Aged 16+ Years

Population in Labor Force*

Population Not in Labor Force**

Employed




Number

Percent

Number

Percent


Kenosha

90,668

68,467

46,025

67.2

22,442

32.8

43,023

Milwaukee

596,956

442,845

283,052

63.9

159,793

36.1

256,244

Oak Creek

28,456

22,177

16,846

76.0

5,331

24.0

16,418

Port Washington

10,364

7,972

5,746

72.1

2,226

27.9

5,618

Racine

81,827

60,612

38,716

63.9

21,896

36.1

35,975

Brookfield

38,807

29,810

19,353

64.9

10,457

35.1

18,807

Cedarburg

10,775

8,298

5,817

70.1

2,481

29.9

5,715

Elm Grove

6,276

4,888

2,746

56.2

2,142

43.8

2,664

Germantown

18,234

13,822

10,563

76.4

3,259

23.6

10,286

Grafton

10,319

7,948

6,028

75.8

1,920

24.2

5,831

Muskego

21,393

16,110

12,263

76.1

3,847

23.9

11,835

New Berlin

38,362

30,008

21,662

72.2

8,346

27.8

21,039

Saukville

4,154

3,082

2,558

83.0

524

17.0

2,467

Waukesha

64,372

50,623

37,078

73.2

13,545

26.8

35,802


Source: US Census Bureau

*Population aged 16 years and older participating in labor force.

** Population aged 16 years and older not participating in labor force.


In 1960, almost half of the Region’s civilian labor force, 316,862 people or 49 percent, resided in the City of Milwaukee (see Table 3-VI below). By 2000, this had declined to about 28 percent or 282,823 people. Table 3-VII shows the composition of the labor force within the “selected communities” in 2000.



SEWRPCs JOB FORECASTS


SEWRPC has historically developed long-term economic and jobs projections for counties and urban service areas within Southeastern Wisconsin as part of its overall regional planning program. The first projections were developed in 1962, and the most recent projections are set forth in Planning Report No. 48 A Regional Land Use Plan for Southeastern Wisconsin:2035, published in 2006. The most recent projections were developed to project likely conditions for the planning year 2035. Other State agencies, including the Wisconsin Department of Workforce Development and the Department of Revenue, have also developed job or employment projections. These projections however, are of significantly shorter term or are estimates for the State of Wisconsin as a whole. As of 2009, available job projections from the Wisconsin Department of Workforce Development end in the year 2016; those from the Wisconsin Department of Revenue only project to the end of year 2012.


pastedGraphic_5.pdf

Source: SEWRPC and US Bureau of Economic Analysis


Job forecasting includes an assessment of data on the existing and projected labor force, existing regional or local job trends, and the outlook of future industries or job sectors. Outside of SEWRPC, no other agency in the State of Wisconsin engages in developing such long range jobs and employment forecasting for the southeastern Wisconsin region. Although projections on both the labor force and sectoral outlook are based on region-wide trends and are therefore region-wide projections, SEWRPC has developed job projections for each of the seven counties and for each of the urban service areas within the region. Based on the availability of the data, CED chose to evaluate SEWRPC’s job projections in the context of county-level and urban service area-level job growth for the purpose of this study.



It must be noted that the most recent job projections developed by SEWRPC under the Regional Land Use Plan reflect base year data for the year 2000, but include data on jobs from the Bureau of Economic Analysis through the year 2003; this captures the effects of the economic downturn that began in 2001 following the aftermath of September 11th. Most counties experienced a dip or decline between 2000 and 2003, with the exceptions of Kenosha, Walworth, and Washington Counties where job growth increased negligibly. Overall, regional job growth fell from 1,222,800 to 1,179,000 or a loss of 43,800 jobs or about 3.6 percent during this 3 year period.



Table 3-VIII: Projected Jobs Distribution for Southeastern Wisconsin


County

2003

Projected Jobs


Jobs

Percent of Regional Jobs

2035

Change (2000 – 2035)

Percent Change

Percent of Regional Jobs

Kenosha

69,500

5.9

88,500

19,000

27.3

6.5

Milwaukee

589,800

50.0

628,900

39,100

6.6

46.0

Ozaukee

49,200

4.2

62,300

13,100

26.6

4.6

Racine

90,000

7.6

106,600

16,600

18.4

7.8

Walworth

52,300

4.4

69,400

17,100

32.7

5.1

Washington

61,800

5.2

78,900

17,100

27.7

5.8

Waukesha

266,400

22.6

333,700

67,300

25.3

24.4

Region

1,179,000

100.0

1,368,300

189,300

16.1

100.0


Source: SEWRPC and US Bureau of Economic Analysis


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Source: SEWRPC


Under SEWRPCs 2035 planned employment for the region, between 2003 and 2035, SEWRPC projects an overall increase of about 16.1 percent in the number of jobs within the region, or about 189,300 jobs. Waukesha County will likely see the highest increases in jobs, with an estimated additional 67,300 jobs, followed by Milwaukee County with projected growth of 39,100 jobs between 2003 and 2035. Milwaukee’s share of jobs will decline slightly from about 50 percent to about 46 percent of the regional job share, while Waukesha’s share will grow from 22.6 to 24.4 percent. Each of the other counties share of regional jobs will continue to range from just under 4 to just over seven percent of the regional share in 2035. SEWRPC anticipates that the historic job trends will continue through the year 2035, but at a considerably slower pace than the trends seen between 1960 and 2000. It must also be noted that these job projections do not reflect the current and yet unforeseen impact of the current Great Recession.


Job growth projections are tied significantly to the population projection, as one of the determining factors regarding job growth is its labor force. Between 2000 and 2035, SEWRPC projects that the civilian labor force will increase from 1,008,400 to 1,144,300 or about 13.5 percent in the seven-county Region. SEWRPC anticipates that the regional labor force may be expected to level off, particularly during the middle of the projection period, as the baby-boom generation approaches retirement. Without an influx of additional people through higher rates of in-migration, this leveling-off of the labor force could potentially decrease the number of jobs that the regional population could accommodate.


Job Forecasts Based on Water Utility Service Areas in Southeastern Wisconsin


Although SEWRPC’s regional labor force projection was not refined for smaller areas of geography, such as county or community, job projections were developed for each urbanized service area. Under the Regional Water Supply Plan, the County projections were refined for each water utility service area, based primarily on an intermediate growth scenario conditions recognized under the Regional Land Use Plan. County-level projections were developed under low-, intermediate, and high-growth scenarios indicating a range of probable projections for the numbers of jobs. For each water utility service area, the job projections were developed based on the intermediate-growth scenario, considered the most likely projection.


Table 3-IX below shows the estimated number of jobs within each of the selected water utility service areas for the year 2000 and the year 2035 job forecasts. There are three methods in which job growth (or destruction) will occur within the utility service areas; new job creation (or conversely, job destruction), job migration or movement from outside of the service area, and job absorption. Although it is anticipated that some of the job growth will be based on job creation or migration within each utility service area, many of the utilities will experience job growth due to job absorption, as many of the selected water utility service areas are proposed for expansion and jobs currently outside of the existing service areas will be absorbed into the expanding service area boundaries. It is difficult to discern which type of job growth - creation, migration, or absorption – will have a greater impact on job growth within each of the selected utilities, other than to say that growth through absorption will not occur in service utility areas that are not projected to increase in size.


The job forecasts project that each utility service will experience some degree of job growth over the 35 year period, with the exception of Milwaukee Water Works. It is anticipated that the Milwaukee Water Works retail service area

will lose approximately 6,300 jobs, or decline by about 1.5 percent either through destruction or migration. The Milwaukee Water Works service area is not anticipated to expand over this period, and therefore, job absorption within its service area will not occur.


Aside from Milwaukee Water Works, each of the other selected water utility service areas is projected to experience some form of service area expansion. For example, the City of Racine Water and Wastewater Utility is projected to see an increase of about 1,050 jobs or about 1.8 percent. This job growth will be some combination of new job creation, migration, and absorption as its service area is anticipated to expand from about 22.3 to about 27.7 square miles

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Table 3-IX: Existing and 2035 Job Forecasts for Selected Water Service Areas


Community

2000

2035


Jobs

Jobs

Change

Percent Change

Kenosha Water Utility

45,269

48,693

3,424

7.6

Milwaukee Water Works

410,929

404,650

-6,279

-1.5

City of Oak Creek Water and Sewer Utility

19,916

28,349

8,433

42.3

City of Port Washington Water Utility

7,092

8,933

1,841

26.0

City of Racine Water and Wastewater Utility

58,601

59,644

1,043

1.8

City of Brookfield Municipal Water Utility and Village of Elm Grove*

34,772

50,711

15,939

45.8

City of Cedarburg Light and Water Commission

8,120

8,754

634

7.8

Village of Germantown Water Utility

10,545

18,071

7,526

71.4

Village of Grafton Water and Wastewater Commission

8,473

12,662

4,189

49.4

City of Muskego Public Water Utility

4,344

8,068

3,724

85.7

City of New Berlin Water Utility

24,237

33,058

8,821

36.4

Village of Saukville Municipal Water Utility

3,306

5,245

1,939

58.7

City of Waukesha Water Utility

51,792

58,196

6,404

12.4


Source: SEWRPC

*Based on the analysis methodology, SEWRPC combines forecast jobs data for the Village of Elm Grove with the City of Brookfield Municipal Water Utility.


Of the selected utilities, the greatest increase in number of jobs is anticipated to occur in the combined City of Brookfield Municipal Water Utility and Elm Grove service area, with an increase of about 15,900 jobs or 46 percent. Again, much of this job growth within the utility service areas could potentially be based on absorption as well as job creation and migration. The proposed development of a water utility service area in Elm Grove indicates that no jobs located in Elm Grove are counted for the year 2000 data. Also, the existing City of Brookfield Municipal Water Utility service area (see Map __) indicates that, possibly, many City of Brookfield jobs are currently located within areas that are not served by municipal water within the City of Brookfield.


In 2000, approximately 19,916 jobs were located within the Oak Creek utility area; by 2035, it is expected to increase by about 8,400 jobs, to about 28,350 jobs through a combination of job creation, migration, and service area expansion. Similarly, job growth in Muskego and Germantown’s utility service areas are expected to increase by 86 and 71 percent respectively, also through a combination of job creation, migration, and absorption.


Because there is a discrepancy between job growth through actual job creation or migration, and through service area expansion and absorption, a more meaningful method to compare job growth within the service areas is by measuring existing and projected jobs per capita (see Table 3-X below); in this case, the data was normalized to reflect the number of jobs per 100 persons. Although not the best method for comparing projected job growth within a community, this measure can give an indication of the direction that job growth is projected to occur within the service area relative to projected population growth.


Based on this assessment, the ratio of jobs to people is projected to either decline or remain unchanged in most of the selected communities. Most likely, a decline is a reflection of the aging of the population, as by the year 2035, it is anticipated that a smaller proportion of the population will be between the ages of 16 and 64, or of prime working age. Between 2000 and 2035, population is expected to increase while jobs are projected to decline in the Milwaukee Water Works service area where the ratio of jobs to people is projected to decrease very slightly, from 63 to 61 per 100 persons. In 2000, the City of Muskego had about 56 jobs for every 100 people; although both the number of people and jobs is projected to grow, it is anticipated that its population growth will outpace any job growth, and that by 2035, there will be only about 28 jobs for every 100 people within the City of Muskego Public Water Utility service area.



Table 3-X: Existing and Forecast Population for Selected Water Service Areas



2000

2035

Community

Population

Jobs

Jobs Per 100 Persons

Population

Jobs

Jobs Per 100 Persons

Kenosha Water Utility

98,700

45,269

45.9

105,100

48,693

46.3

Milwaukee Water Works

650,750

410,929

63.1

664,550

404,650

60.9

City of Oak Creek Water and Sewer Utility

26,000

19,916

76.6

50,850

28,349

55.8

City of Port Washington Water Utility

10,600

7,092

66.9

15,000

8,933

59.6

City of Racine Water and Wastewater Utility

103,800

58,601

56.5

113,500

59,644

52.5

City of Brookfield Municipal Water Utility and Village of Elm Grove*

30,249

34,772

115.0

51,600

50,711

98.3

City of Cedarburg Light and Water Commission

11,250

8,120

72.2

14,900

8,754

58.8

Village of Germantown Water Utility

15,050

10,545

70.1

23,450

18,071

77.1

Village of Grafton Water and Wastewater Commission

10,500

8,473

80.7

16,450

12,662

77.0

City of Muskego Public Water Utility

7,800

4,344

55.7

28,650

8,068

28.2

City of New Berlin Water Utility

30,100

24,237

80.5

41,300

33,058

80.0

Village of Saukville Municipal Water Utility

4,150

3,306

79.7

5,650

5,245

92.8

City of Waukesha Water Utility

65,000

51,792

79.7

88,500

58,196

65.8


Source: SEWRPC and CED

*Based on the analysis methodology, SEWRPC combines forecast jobs data for the Village of Elm Grove with the City of Brookfield Municipal Water Utility. Job estimates are based on both the City of Brookfield Municipal Water Utility and the Village of Elm Grove sewer service area. The year 2000 population projections include the estimate of 24,000 people served by the City of Brookfield Municipal Water Utility and the estimated population of the Village of Elm Grove served by municipal sewer, or 6,249 people.


Jobs per capita are projected to increase in only three of the selected utility service areas; the Kenosha Water Utility, the Village of Germantown Water Utility, and the Village of Saukville Municipal Water Utility. The ratio of jobs to people should increase very slightly for the Kenosha Water Utility from 2000 to 2035, with about 46 jobs for every 100 people. Comparatively, this is the lowest estimate of jobs per capita amongst the 14 service areas for the year 2000. Historic trends within Kenosha County indicate that a significant number of Kenosha City and County residents work outside of the City of Kenosha and outside of Kenosha County (most significantly in northern Illinois)

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Water-Intensive Industries

All commercial and industrial businesses and industries use water in one form or another, but most would not be considered water-intensive users. Although water-intensive industries have not been conclusively identified in southeastern Wisconsin, a review of the 2007 County Business Patterns indicates the county locations of some of the industries identified with water-intensive production needs. Currently, the most water-intensive industries located in southeastern Wisconsin include brewing and bottling manufacturers, mining, thermoelectric power generators, and agriculture. Additionally, there are some large food processors and manufacturers located within the region that most likely rely on large quantities of water for production.


Many of the largest water users do not rely on the use of municipal water. Instead, they rely on private high-capacity wells for groundwater, which are regulated by the Department of Natural Resources. Information regarding these high-capacity wells and their estimated water use was compiled during the RWSP planning process and is available in Chapter 3 of SEWRPC’s Planning Report 52. Some of these water-intensive industries, however, involve cycling groundwater; for example, groundwater is withdrawn but then sprayed on crops for agricultural practices and therefore most of the groundwater is returned in the production process.


By far the most intensive water-using industries are those that generate thermoelectric power, and most of these plants are located within the Lake Michigan watershed and rely on Lake Michigan water as the source. Within the region, there are two We Energies’ “peaking plants” that rely on groundwater, one in the Town of Paris, and the other in the Village of Germantown. The two peaking plants are used intermittently, only during periods of peak demand, and therefore, water use is also intermittent, and the spent water is cycled back to its source. Additionally, there are several quarries in the region that are water-intensive; these too involve a process of recycling groundwater, and all quarries rely on private high capacity groundwater wells that are operated by individual industries and regulated by the Department of Natural Resources.


A review of existing large businesses located within the selected 9 communities indicates that there are currently no known major water-intensive businesses or industries located within the 9 communities that rely on municipal groundwater. Almost all of the existing bottling and brewing/beverage manufacturers in southeastern Wisconsin are located within the Lake Michigan basin, with the exception of one water bottling plant, Cascade Springs, in the Village of Mukwonago. Additionally, there are also some large food production manufacturers in the region that rely on large amounts of water for their production; some of these plants are located within utility service areas, yet some are located outside of water utility service areas and rely on private high-capacity wells.


For any industry that relies on water, it is assumed that the cost of water as well as the water quality should have some impact on their choice of production location. This could, however, change depending upon any water sales agreement determining the amount of water supplied to such community, and any agreement regarding return flow. Much of this is yet to be determined, and would be under the scrutiny of the terms of the Great Lakes Compact and would be subject to regulations that would need to be set forth by the Department of Natural Resources and the Wisconsin Public Service Commission.




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