Based on the fact that employment in Milwaukee contracted by 6.1% in September, faster than all but three of the 50 largest metro areas in the U.S., it is clear that the Brew City is still firmly in the grips of recession. 

Indeed, over the past year virtually every one of the metro area’s major industrial categories has shed jobs, led by professional and business services (-12.5% year over year) and followed by construction (-12.0%), manufacturing (-11.3%), transportation and trade (-5.6%), leisure and accommodation services (-5.5%) and financial services.

Two sectors that have withstood the hostile economic climate better than the rest are education and health services (-0.3% year over year) and government services (-1.2%). 

Despite Milwaukee’s weak employment picture, there are tentative signs that the metro area’s economy is starting to stabilize.

For example, existing house prices in the second quarter exhibited their smallest year- over-year declines in more than a year, indicating housing demand is starting to pick up strength.

Also, although the ISM-Milwaukee Business Survey Report pulled back from its year-and-a-half high of 59 in October, it held at the critical 50 level.

While the level of purchasing activity, production and new orders all declined in October, they all remained well above year-ago levels. This suggests that manufacturing is still expanding, albeit at a glacial pace.

Based on the most recent Manpower Employment Outlook, which indicated that hiring in the fourth quarter of 2009 is expected to be consistent with the previous quarter, the Milwaukee job market also appears to be flattening. 

Finally, as appearing in the third quarter Colliers International Market Update, there is evidence that the Milwaukee industrial market started to gain strength based on evidence of stronger sales and an increase in leasing activity.

Looking forward, given how severely the Milwaukee economy has been hit by the current economic meltdown, it will obviously take time to recover. Consequently it is unlikely that it will regain its previous strength until late in 2010 or early in 2011.