Larger Forces Can Shape Wisconsin Economy in 2026

By Tom Still, Past President of the Wisconsin Technology Council

By some national measures, Wisconsin looks like an economist’s version of “Midwest nice.” Its unemployment rate is below the U.S. average, its workforce participation rate generally exceeds the norm, its median wage is higher than in many states and its indebtedness rate is well below average.

In short, Wisconsin people go to work – mostly, for a fair wage – don’t over-borrow, and pay their debts.

That doesn’t mean Wisconsin is immune from larger economic trends, however. With its historic manufacturing and agricultural base, it can be susceptible to influences beyond in-house control. Here are some larger forces that could hit home in 2026:

• President Trump imposed tariffs on many foreign-made goods in hopes of luring manufacturing back to the United States. That’s helping to bring some factories home but continues to raise many consumer prices. Global retaliation makes it harder to sell some goods and commodities as buyers find other sources. The immigration crackdown has proven overly broad in some industries, such as Wisconsin dairy farms.
• Large data centers that power artificial intelligence are being planned or built across Wisconsin, creating jobs for many but raising worries for others. Can enough electricity be generated to satisfy AI’s appetite as well as society’s overall power needs? With a balanced approach engaging solar, wind, hydro, battery storage, natural gas and – eventually – a rebirth of nuclear power, the answer is a qualified “yes.” Wisconsin utilities are heavily regulated, so solutions that shift costs or hurt the environment are unlikely to be accepted.
• Speaking of AI, some opponents portray it as little more than a plaything for techies or a tool for graphics-minded scammers. Wrong. The growth of “physical AI” can make Wisconsin’s core industries such as manufacturing, food production and construction more efficient. That trend will mature in coming years.
• As “Baby Boomers” age out, are there enough workers in Wisconsin’s Generations X, Y, Z and Alpha to fill the workforce gap? That’s a major question in northern and central Wisconsin, where workforce participation rates are lower. Keeping younger people in Wisconsin is vital, even in an era when online workers can be recruited around the world.
• It’s not your father’s college degree anymore. Amid reports of recent graduates not landing jobs to fit their education, some college-age students are wondering if they would rather be an electrician or plumber versus an anthropologist or historian. Wisconsin’s excellent technical colleges and trade schools may see an enrollment spike.
• Private and public research will become everyone’s business. Skepticism over medical science has found a home in Trump’s remodeled White House, with potentially dangerous results. Wisconsin is home to some of the nation’s best public and private research centers, which collectively help to save lives and power the next generation of companies. Whether those companies are startups – or major firms acquired for billions of re-invested dollars – they’re vital to our economy. Let’s hope 2026 reverses the anti-science trend.

Still is the past president of the Wisconsin Technology Council and the former associate editor of the Wisconsin State Journal.