Wisconsin’s Workforce Crossroads: How Economic Development Can Turn the Tide

The message from statehouses is clear: the next era of economic development is people-first. Legislators are setting aside millions to help communities attract new residents, signaling a profound shift in how growth is defined and pursued.

In just the past few years, nine states have committed more than $170 million to relocation incentives, housing support, and marketing campaigns aimed at drawing new residents. Indiana, Kansas, Kentucky, Michigan, Ohio, North Dakota, Nebraska, and Minnesota have all rolled out major initiatives - signaling that this is more than a passing experiment. It’s a structural shift in how states are tackling population decline and workforce shortages.

Wisconsin has now joined them. The state’s 2025–2027 budget includes $5 million for talent attraction programs, using an 80/20 state-local match model to be administered by the Wisconsin Economic Development Corporation. While the funds have not yet been formally announced or released, the budget allocation shows that policymakers are beginning to take the challenge seriously.

“This isn’t just theory anymore,” said Evan Hock, co-founder of MakeMyMove, which partners with communities across the country on relocation campaigns. “States are realizing they’re no longer just competing for business - they’re competing for people. And the successful ones are giving their communities the tools to win.”

Wisconsin’s Workforce Challenge

When Dale Knapp looks at Wisconsin’s demographic charts, he doesn’t just see numbers on a page - he sees warning signs flashing for the state’s future.

“Our prime workforce - those ages 25 to 64 - is projected to shrink by nearly 200,000 people this decade,” said Knapp, Director at Forward Analytics. “This isn’t a temporary fluctuation. It’s a demographic shift that demands action.”

Knapp has been sounding the alarm for nearly 20 years. Back in 2004, while at the Wisconsin Taxpayers Alliance, he co-authored a piece projecting that Wisconsin’s workforce would flatten around 2015 and begin to decline after 2020. “We’ve discussed it for 20 years now and we’re finally getting some interest,” he said. “But we’re a little late to the party.”

Several factors are fueling the decline:

A Shrinking Workforce, A Shrinking Main Street

The consequences are already rippling through communities.

“The restaurant you’ve gone to for 25 years for your Friday night fish fry may not be there because they can’t find workers,” Knapp said. “The hardware store in your town of 2,500 may close its doors. And as this continues, counties and municipalities struggle to fund essential services. It’s not just an inconvenience — it’s a community sustainability issue.”

In some northern counties, the outlook is especially dire. Population models indicate that the number of prime working-age residents could decline by 30–40% over the next 15 years. Once a community begins to tip in that direction, Knapp warned, it’s difficult to recover. “Young people want to move to a vibrant community,” he said. “Not one that’s declining.”

Why Young People Don’t Return

For decades, Wisconsin could count on college graduates returning home. But those days are over.

“Millennials and Gen Z are generationally different,” Knapp explained. “After college, they want to go to the big city.”

Birth rates are also falling and while retirees are moving back to rural counties in surprising numbers, they don’t add to the workforce. “They’re creating demand for goods and services but they’re not helping with the workforce problem,” Knapp said. “And as they age, the demand for senior services only grows.”

A Case for Incentives

A few rural counties have run modest ad campaigns to attract new residents, with some success. Years ago, the state launched a marketing push in Chicago to lure back millennials. But Knapp sees an opportunity for far bolder action.

At one point, the state sat on a $4.5 billion surplus. Knapp calculated that dedicating just $300 million could have created a self-sustaining relocation incentive program: $50 million for national advertising to reshape Wisconsin’s image and the rest to offer $18,000 relocation bonuses to 3,000 families each year.

“Over six years, the income and sales taxes from those families would pay back the program and then you could run it forever,” Knapp said. Knapp’s projections outline the long-term math. Additionally, MakeMyMove has found that the return often arrives much sooner - in as little as 18 months. For Wisconsin, that means the state’s allocation may not just be smart policy, but a quick win as well.

Communities, Not States

Still, Knapp is clear - economic development can’t be left to state government alone.

“People don’t move to states - they move to communities,” he said. “That’s why local leaders have to be at the table, with some skin in the game. Businesses need to be involved too. For it to work, it has to be a partnership.”

Part of the challenge, he added, is how outsiders perceive Wisconsin. “They know us as beer, cheese, cold and the Packers — and that’s about it,” Knapp said. “We need to tell a fuller story about what living here really offers.”

For Wisconsin, the challenge and the opportunity lie in making sure those stories become the norm rather than the exception.

Signs of Hope

Despite the tough numbers, Knapp sees glimmers of promise. Migration data shows young families moving to Wisconsin from cities like Seattle, San Diego and Denver.

“They’re rediscovering the value of living in Wisconsin - the schools, the quality of life, the affordability,” Knapp said. “Once you get them here, I think you’ve got them for life, at least for 20 years while they raise their kids.”

The Road Ahead

The takeaway, Knapp stressed, is clear: “This is not a challenge that will solve itself,” he said. “We have to be proactive, collaborative and bold in how we approach economic development. The future of Wisconsin depends on it.”

Wisconsin’s future hinges on a simple equation - economic development requires population development.

At MakeMyMove, we help communities grow by recruiting new residents. To get your community started, contact us here.