Wisconsin is lacking in both population growth and economic growth, trends which are related and disturbing and should be the main focus of the state’s policymakers.
A recent indicator comes from preliminary data from the U.S. Bureau of Economic Analysis, which shows that Wisconsin’s economic growth in 2021 was among the slowest in the country and lagged behind all nearby states.
Wisconsin’s real gross domestic product increased 3.8% from 2020 to 2021, the 10th slowest rate in the country. It was the slowest growth among nearby states, a group led by Indiana’s 6.9% growth. Across the wider Midwest region, only North Dakota at 2.1% had a slower growth rate than Wisconsin in 2021.
The 3.8% growth rate was Wisconsin’s strongest for a single year since 1999, but that’s because 2021 was a bounce-back from the devastating pandemic-related shutdowns of 2020. The state’s poor economic performance compared to other states, especially Midwest states, is a major concern.
Now for the disturbing lack of population growth in the state. From 2010 to 2020, Wisconsin’s population grew by only 3.6%, well below the national population growth rate of 7.4%. Utah had the highest population growth rate of the decade at 18.4%. Wisconsin’s population growth for the decade ranked 35th.
Newer data from the U.S. Census Bureau is also not encouraging. Milwaukee County’s population decreased by 10,090 in 2021. As a state, Wisconsin’s population rose by only 3,585 or 0.06%, ranking it 31st in the nation.
Mostly because of the big population decrease in Milwaukee County, the metro Milwaukee area saw its population fall 7,111 or 0.45%, ranking 326th out of 384 metro areas in the country.
Since Milwaukee is the largest city and metro area in the state, it is the state’s economic anchor and engine. Without significant population growth, the region won’t have the workforce needed for area companies to grow. And population growth is needed to provide more consumers to support businesses.
Without significant population and economic growth in the state’s largest region, there won’t be significant population and economic growth for the state of Wisconsin as a whole. It’s that simple.
State policymakers need to pay more attention to the state’s lack of population growth as a necessity to promote economic growth.
Wisconsin needs to attract more people to live here to grow its economy. That means the state needs to be welcoming and attractive to all types of people. It also means we have to have a business-friendly environment of relatively low taxes and reasonable regulation so businesses can thrive here and provide job opportunities that attract people. But we also have to provide a high quality of life with schools, parks, transportation systems and other amenities, all of which cost money to support.
In this gubernatorial election year, we need to hear more ideas from the candidates about what they will do to attract more people and grow the state’s population. Our economic growth depends on it.
