Photo by Richard Hurd
Metro Metrics August 2025
Metro Metrics is a monthly data snapshot that explores key economic indicators reflecting the health of the Madison metro economy.
Quarterly State of the Economy Report
In this month’s Metro Metrics, we review quarterly economic indicators to benchmark and assess changes in the Madison metro economy.
Greater Madison’s labor force has changed little from the prior quarter and year (Table 1). Unemployment increased slightly but is still well below the statewide rate, which is itself a full point lower than the national rate. Although Greater Madison’s total workforce has decreased 2.3% in the past year, the three- and five-year trends still show growth in the longer term, and with the region’s projected population growth, the labor force is expected to grow along with the population.
Employment continues to increase in key industries such as Information and Education and Health Services (Table 2). The Information sector includes software publishing, an industry where Greater Madison has the highest concentration of jobs among metropolitan areas nationally. Leisure and Hospitality employment increased 5.3% since last July, showing the strength of the region’s tourism industry. Industries with declining employment over the past year include Manufacturing; Trade, Transportation and Utilities; and Government.
Of these industries, Government had the largest decrease, both proportionally (down 5.5% over the past year) and in raw numbers (down 5,000 jobs). As the capital city of Wisconsin, Madison has a high concentration of government jobs, with around one-fifth of all jobs in the Madison region coming from federal, state and local governments.
There was significant building permit activity in the past quarter, with more than 2,200 units approved in the Madison metro (Table 3). Although the number of permits approved so far this year slightly trails last year, if the trend of the last three months continues, it will be well on its way to catching up and surpassing last year’s totals.
The most recent passenger count data from Dane County Regional Airport shows continued growth (Table 4). July passenger counts increased more than 10% since last year, surpassing pre-pandemic levels and breaking the previous record for travel in the month of July. Similarly, the year-to-date total of passengers increased by more than 5% this year compared to last year, breaking another record.
The continued growth in passenger counts through business and leisure use supports ongoing partner conversations with airlines on the demand for new and more frequent nonstop service.
