While unemployment claims are dropping nationally, Wisconsin is seeing an increase in the number of people filing for unemployment benefits. Unemployment insurance claims in Wisconsin increased by more than 25% last week from the previous week, or by about 800 claims. That's the third-highest increase of all 50 states and D.C., according to a new analysis by WalletHub, a personal finance company.

Here's what to know about unemployment claims and the unemployment rate in Wisconsin.

Wisconsin logged 3,968 jobless claims in the week ending Aug. 31, up from 3,152 the week before, according to the U.S. Department of Labor's weekly unemployment insurance claims report. 

That's about 124 people out of every 100,000 in the Wisconsin labor force filing for unemployment insurance, according to WalletHub.

Last week's increase in claims also marks a significant uptick from the number of claims filed during the same time last year. Compared to the same week in 2023, about 31% more unemployment claims were filed in Wisconsin the week of Aug. 26, WalletHub reported.

Meanwhile, unemployment claims nationwide dropped overall last week. The country saw 227,000 claims, down from 232,000 the week prior.

It's unclear from the report why exactly unemployment claims increased in Wisconsin last week. However, 285 Wisconsin workers across five companies were laid off from their jobs in August, compared to about 50 workers in July. Festival Foods and KFC were among the companies that laid off workers.

Wisconsin's Strong Job Market

Despite the increase in unemployment claims, Wisconsin's overall job market remains strong. The state is currently logging a record-high employment rate for the third consecutive month, with more than three million people working statewide. This is a testament to the state's strong economy and robust job market.

Unemployment Rate Remains Stable

While unemployment claims have increased, Wisconsin's unemployment rate has actually remained stable at 3%, according to the most recent data from the state Department of Workforce Development. This stability in the unemployment rate suggests that the recent rise in unemployment claims may be a temporary blip. The increase in claims might be due to seasonal factors or temporary layoffs, rather than a broader trend of job losses.

A Closer Look at Milwaukee

The Milwaukee-Waukesha-West Allis area, however, has a slightly higher unemployment rate at 3.7%. Compared to June, about 3,700 less people are working in these areas. This suggests that certain regions within Wisconsin might be experiencing more localized economic pressures, even while the state as a whole enjoys robust employment figures.

Understanding the Data

It's important to remember that unemployment claims don't tell the entire story. They only reflect the number of people who have filed for unemployment benefits, not the total number of people who are unemployed. The state's unemployment rate is a better measure of overall joblessness. Though the recent rise in claims is noteworthy, it's essential to consider it within the context of Wisconsin's overall strong job market and stable unemployment rate.

The Future of Wisconsin's Economy

The recent increase in unemployment claims in Wisconsin is a cause for concern, but it's not necessarily a sign of a weakening economy. The state's strong job market and stable unemployment rate suggest that the increase in claims may be temporary. It's important to continue monitoring the situation to see if the trend persists and to identify any underlying causes for the recent rise in claims. As the state continues to grow its economy, it's vital to ensure that all communities benefit from the economic prosperity and that no one is left behind.