Wisconsin Labor Market Shows Resilience Despite January Layoffs Affecting 366 Workers

MADISON, Wis. – Wisconsin's labor market demonstrated notable stability in January even as seven companies filed official notices to lay off nearly 366 workers, according to state data. The state's unemployment rate remained essentially unchanged at 3.1%, suggesting underlying resilience amid localized job cuts.

"We're seeing a broader cooling trend aligning with the national economy, but the fundamentals remain strong. Hiring has moderated, yet separation rates are holding steady," said Scott Hodek, an economist with the Wisconsin Department of Workforce Development. "Historically low unemployment continues to be the defining feature."

The reported layoffs, however, may not capture the full picture. Some significant workforce reductions, such as Polaris's planned closure of its Osceola facility affecting 200 employees, did not trigger WARN notices. Economists also highlight a persistent, longer-term trend: a shrinking labor force, largely attributed to retiring Baby Boomers. Federal data indicates Wisconsin's labor force—those aged 16 to 65—contracted by approximately 66,700 over the past year.

Sector performance has been mixed. Construction showed robust growth, adding 3,100 jobs from November to December and 5,000 year-over-year. In contrast, manufacturing shed 1,100 positions in the same one-month period and was down 3,800 for the year.

The following companies filed WARN notices with the state in January:

• Associated Milk Producers, Inc. (Blair): 86 temporary layoffs starting March 31 due to a plant transition from cheddar to cottage cheese production. Most workers are expected to return in early 2027.
• Fresenius USA Manufacturing, Inc. (Kenosha): 41 layoffs beginning April 10 following a divestiture of logistics business to Ryder System, Inc.
• Bank First (Beloit): 47 layoffs between March 31 and May 30 after merging with First National Bank and Trust Company, leading to the closure of two facilities.
• Tekni-Plex (Milwaukee): 39 workers impacted by the planned April 30 closure of this medical packaging facility. Separations begin March 27.
• H4 Logistics, LLC (Kenosha): 41 layoffs as this Amazon delivery partner ceases operations on March 23.
• United Piston Ring (Manitowoc): 60 employees to be laid off between March 6 and June 30 with the facility's closure.
• Lakeside Curative Services (Racine): 56 employees affected by the phased closure of its operations department, set to be complete by March 6.

Voices from the Community

Michael Torres, 42, Small Business Owner in Kenosha: "Seeing these logistics and manufacturing jobs leave is worrying for the local economy. It feels like the stable, middle-class foundation is getting chipped away, even if the unemployment number looks good on paper."

Dr. Lena Schmidt, Economics Professor at UW-Madison: "The steady unemployment rate amidst these layoffs indicates churn rather than collapse. Workers are likely being absorbed elsewhere, particularly in growing sectors like construction and healthcare. The larger structural issue remains our declining working-age population."

Sarah Chen, 38, Former Tekni-Plex Employee: "It's a brutal disconnect. Officials talk about 'low unemployment' and 'resilience,' but for my 39 former colleagues and me, it's pure anxiety. These aren't statistics; they are mortgages, childcare costs, and lives upended. The system feels designed to smooth over the real human cost."

David Miller, 55, Retired Machinist in Manitowoc: "I retired last year, and I see why many of my generation are doing the same. The plants we built careers in are changing or closing. The jobs report might call it a 'declining labor force,' but for us, it's just the end of an era."

This report includes information originally published by the Milwaukee Journal Sentinel.