Labor Market Pulse · Human Resources · August 2026
Human Resources Labor Market Report: Racine, WI MSA — August 2026
Racine's tight labor market is shrinking, not loosening.
Racine-area manufacturing has lost 8,600 jobs over the year even as county unemployment holds near 3.3%, while local Recruiter pay fell sharply to $56,369 against a rising $67,643 national median.
Free archive edition. Published by WageScape as sent to subscribers; data as of August 2026.
Key indicators
- Racine County unemployment: 3.3% — vs 4.1% national, May 2026
- Racine MSA manufacturing jobs lost: -8,600 YoY — Jan 2026, MSA total employment down 0.5%
- Recruiter advertised pay, metro: $56,369 — Down significantly vs $67,643 national median
- Wisconsin unemployment rate: 3.2% — vs 4.1% national, August 2026
Key takeaways
Manufacturing losses aren't loosening the local labor market.
Racine-area manufacturing lost 8,600 jobs year-over-year through January, yet county unemployment sits near 3.3% — well below the national 4.1%. Displaced workers appear to be exiting the labor force or shifting sectors rather than building a surplus applicant pool for employers to draw on.
Recruiter pay is falling locally while rising nationally — a signal worth scrutinizing.
Metro Recruiter advertised pay dropped significantly to $56,369 against a national median of $67,643, up moderately. Consider whether this reflects genuinely softer local recruiting demand or under-investment in a function that tight-market conditions argue should be strengthening.
Benefits Manager pay signals rising cost-management stakes, not just market catch-up.
Metro Benefits Manager pay rose significantly to $118,534, tracking closely with a national median up sharply to $120,000. Employers appear to be paying for expertise to manage benefit cost inflation and plan design as healthcare cost pressure builds into 2027 planning cycles.
Wisconsin's real wage gains may be running out of room.
State median wage hit a record $26.17/hour, but rising 2026 inflation threatens to erode those gains much as it did in 2022. Compensation planning anchored to nominal pay growth without inflation modeling risks understating retention pressure through year-end.
Median advertised pay by role — Racine, WI MSA
| Role | 25th percentile | Median advertised pay | 75th percentile | Metro trend | National median |
|---|---|---|---|---|---|
| Compensation Analyst * | $65,077 | $83,151 | $93,190 | Moderate increase | $101,055 |
| HR Business Partner | $63,464 | $84,349 | $98,306 | Moderate increase | $83,180 |
| Benefits Manager * | $81,350 | $118,534 | $133,021 | Significant increase | $120,000 |
| HRIS Analyst * | $76,737 | $82,318 | $89,607 | Moderate increase | $95,665 |
| HR Coordinator | $47,350 | $54,080 | $69,042 | Stable | $50,095 |
| Recruiter | $42,146 | $56,369 | $80,000 | Significant decline | $67,643 |
| Payroll Specialist | $47,487 | $63,941 | $69,680 | Significant increase | $58,266 |
* State-level figure shown where metro postings were too few.
WageScape's median is calibrated to correct for spurious low-value postings (reported as the 60th percentile of raw advertised pay). Download: CSV · JSON
Local market conditions
Racine-Mount Pleasant MSA nonfarm employment fell to 77,300 in January 2026, down 0.5% year-over-year, with manufacturing shedding 8,600 jobs over that span even as county unemployment held near 3.3% in May — a tight rate that reflects shrinking labor supply as much as demand strength. Structural rebalancing across southeastern Wisconsin toward logistics, bio health, and data centers appears to be absorbing some displaced manufacturing capacity, but the pace has not kept up with losses, leaving employers competing for a smaller, more selective candidate pool.
What it means
Manufacturing contraction alongside sub-4% unemployment signals a labor market where headcount losses are not translating into looser hiring conditions — talent scarcity persists even as total jobs shrink, complicating workforce planning built on assumptions of easing competition. Retention economics now matter more than acquisition economics: with Recruiter advertised pay down significantly locally while national Recruiter pay rises, Racine employers may be under-resourcing the function precisely when candidate scarcity argues for the opposite. Consider reviewing recruiting and retention budget allocation against local role-specific pay movement rather than national benchmarks alone.
Looking ahead
Worth watching: Manufacturing employment in Racine has declined for over a year; watch whether September BLS data (releasing late in the month) shows the decline stabilizing or accelerating, and whether displaced workers surface in local applicant pools for logistics and healthcare roles.
Emerging pressure point: Recruiter advertised pay has moved sharply lower locally while rising nationally — a divergence that may compress talent acquisition capacity just as manufacturing displacement and low unemployment both argue for stronger sourcing capability.
Potential inflection point: National wage growth (3.1% YoY) has fallen behind CPI for the first time since 2023, ending nearly three years of real wage gains. If this persists into Q4, expect retention risk to rise even in metros like Racine where nominal pay has been increasing.
Early indicator: Wisconsin's Black unemployment rate (7.2%, Q1 2026) is diverging sharply from the statewide white rate (2.3%). Racine's demographic composition makes this a metro-relevant equity signal worth tracking in recruitment funnel and advancement data over coming months.
Methodology
Advertised pay from active employer job postings, not survey data. WageScape's median is calibrated to correct for spurious low-value postings: distribution analysis shows roughly the lowest 10% of raw values are erroneous entries, so the reported median is the 60th percentile of raw advertised pay. WageScape observes 98% of U.S. job openings daily.
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