With the coming of the first Europeans, fur trading became a major economic activity; as more settlers arrived, agriculture prospered. Although farming—preeminently dairying—remains important, manufacturing is the mainstay of today's economy. Wisconsin's industries are diversified, with nonelectrical machinery and food products the leading items. Other important industries are paper and pulp products, transportation equipment, electrical and electronic equipment, and fabricated metals. Economic growth has been concentrated in the southeast. There, soils and climate are favorable for agriculture; a skilled labor force is available to industry; and capital, transportation, and markets are most readily accessible.
As happened to the country at large, Wisconsin in 1981–82 experienced the worst economic slump since the Great Depression, with the unemployment rate rising to 11.7% in late 1982. Manufacturing was hard hit, and the loss of jobs in this sector was considered permanent. Nevertheless, manufacturing has remained Wisconsin's dominant sector, accounting for 27% of total state output in 1997, and growing close to 2.7% a year 1997 to 2000 (although falling to 25% of total output), before falling 2.9% in the national recession of 2001 (and falling to 21% of total output). The strongest growth in the period, as in most of the rest of the country, was in various categories of services, with output from general services up 29.1%; from financial services, up 25.2%, from government, trade and the transportation and utilities sectors, all up more than 20% 1997 to 2001. The diversity of Wisconsin's economy could be expected moderate the impact of the national recession and slowdown in 2001 and 2002, and by the end of 2002, the rebound of employment in the state was outpacing that of the nation overall.
In 2001, Wisconsin's gross state product gross state product was $177.4 billion, the 20th largest among the states, to which manufacturing contributed $42 billion; general services, $32.9 billion; financial services, $29.2 billion; trade, $28 billion; government, $20.4 billion; transportation and public utilities, $12.5 billion, and construction, $8.6 billion. The public sector in 2001 constituted 11.5% of gross state product, close to the 12% average for the states.