Layoffs hit hard across Southeast Tennessee, North Georgia
By: Cliff Hightower
…Companies across Southeast Tennessee and North Georgia like Huber Engineered Woods; Whirlpool in Cleveland, Tenn.; and Mount Vernon Mills in Trion, Ga., have laid off hundreds of workers in the last three months, federal records show.
Even federal statistics might not tell the whole story because industries or businesses that employ 50 people or fewer are not mandated to report layoffs, officials said.
“You can go into some of the small businesses in Dalton and see that their jobs are reduced,” said Kathy Williams, employer marketing representative for the Georgia Department of Labor in Dalton, Ga. “People are trying to do with the minimal.”
Most of those layoffs have occurred in industries that deal with the housing market, records show. Slumping home construction has lessened demand for wallboard, carpet, appliances and other products, experts said.
Other losses came in the textile industry, where jobs have been moving overseas for years to take advantage of lower labor costs.
UNEMPLOYMENT RISING
Unemployment rates have risen over the last year and in some counties have almost doubled from the previous year, records show.
The unemployment rate for Catoosa, Dade and Walker counties rose from 3.5 percent in March 2007 to 6.5 percent in March 2008, said Patrick Todd, labor market analyst for the Tennessee Department of Labor’s Chattanooga Metropolitan Statistical Area. The Chattanooga MSA comprises those Georgia counties plus Hamilton, Marion and Sequatchie counties in Southeast Tennessee.
Unemployment in Whitfield County, Ga., went from 4.3 percent in March 2007 to 6.3 percent this March, federal records show.
March jobless rates jumped in McMinn County, Tenn., to 7.9 percent, up from 5.1 percent the previous year. In Meigs County, Tenn., the rate rose from 6.5 percent to 8.1 percent in the same period.
In Sequatchie County, Tenn., March jobless rates rose from 6.6 percent to 7.8 percent.
“What we’re seeing is a lot of counties are higher than a year ago,” said Larry Green, labor market analyst for the Tennessee Department of Labor. “Everybody is having trouble in manufacturing across the board.”
In McMinn County, Collins & Aikman, a company that sewed automobile upholstery, laid off almost 500 workers last year, records show. Whirlpool laid off 355 employees in Cleveland, Tenn., last month, and Mohawk Industries in Dalton told 66 workers in February they were no longer employed, records show.
Layoffs in smaller counties can be a shock to the entire community, Mr. Green said.
“There’s a lot of counties solely dependent on one or two manufacturers, and if they close, they are in trouble,” he said.
Jack Hammontree, director of the McMinn Economic Development Authority, said county officials are hoping for another employer to take over the former Collins & Aikman plant.
But in tough economic times, that might be hard to achieve, he said.
“It’s always difficult to recruit,” he said. “But it’s more difficult. The companies are thinking less about expanding.”
SEEKING RETRAINING
Some people who lose their jobs go back to school and learn different skills.
Scott Spears, of Trion was among 250 workers laid off from Mount Vernon Mills in Chattooga County, Ga., in January.
Mr. Spears enrolled at Northwestern Technical College in Rock Spring, Ga.
He can draw unemployment while he’s enrolled, and he gets money for school books, gas and food through the federal Workforce Investment Act.
He said he hopes the economy will be better by the time he’s through with his two-year degree in industrial control systems.
“That’s what I’m hoping,” he said.
Susan Doesburg, WIA assistant coordinator at Northwestern, said the most popular programs are nursing, electrical and heating and air conditioning. She said enrollment has increased because of layoffs. School officials said WIA enrollment averages 15 students a quarter, but 60 students enrolled this quarter.
Mrs. Doesburg said those students are using resources at a fast clip, and she’s worried how much help Northwestern can give to victims of future layoffs.
“Due to this increase, WIA funds are now limited,” she said.
Joyce Carrier, dean of the school of technology at Dalton State College, said she expects enrollment to jump in the fall, and perhaps the spring, because of layoffs. Many former employees come hoping the economy will get better once they graduate, she said.
“I think all of us would like to believe that,” Mrs. Carrier said.
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