Sally Reed
A recent release of data from initial jobless claims showed that two U.S. states have considerable jumps in mass layoffs. Most of the layoffs reportedly came from within the manufacturing and automobile sectors.
The Industry Affected Most By Layoff Varies Between The States
Further reports show that apparently the industries were affected differently in both impacted states. Michigan and Missouri experienced increases in jobless claims of 1,204 and 1,443 respectively the week ending March 16.
The automobile industry was affected by the layoffs the most in Missouri. On the other hand, the manufacturing sector took the biggest hit in Michigan, according to the Department of Labor.
GM Announced Plans To Lay Off Over 1,300 Workers In March
General Motors (GM) announced plans to lay off approximately 1,314 workers between two of its plants in Michigan through March 25. This is just one example of how the automotive manufacturing sector in Michigan was affected.
The Orion Assembly of GM laid off nearly 1,000 employees. However, the Lansing Grand River Assembly & Stamping plan lost nearly 1,400 employees. This data was based on the notices that were filed with the workforce development offices in the state.
Missouri School Bus Drivers Could See Over 330 Job Cuts
The mass layoffs in Missouri span throughout the automobile industry. For instance, Missouri Central School Bus drivers could reportedly see approximately 332 job cuts.
One report claims that the Student Transportation of America in Kansas City has a plan to lay off nearly 150 employees by the end of June. This information is based on Worker Adjustment and Retraining Notification (WARN) Act notices filed.
Missouri Central School Bus Was ‘Unable To Negotiate Mutually Agreeable Terms’
A released statement confirmed that the Missouri Central School Bus officially notified the St. Louis Public Schools district of the intent to terminate their contract effective June 30, 2024. To prevent the termination, the parties were required to “come to mutually acceptable terms” for the 2024-2025 school year.
According to the statement, “despite good faith efforts by both sides,” the parties involved were “unable to negotiate mutually agreeable terms.” The statement confirmed which locations would be closed and how many employees would be affected.
Missouri Layoffs Affected By Contract Terminations From Local School Districts
The layoffs throughout Missouri have also been reportedly impacted by contract terminations with local school districts. This conclusion was reached based on letters that have been filed.
This had also led to the closure of multiple facilities. Further reports show that this change will create a ripple effect that affects hundreds of employees with part-time and full-time schedules.
Several Tech Companies Also Affected By Mass Layoffs
There were several other major businesses from the food industry and technology sector affected by the mass layoffs. For instance, biotech company Bionano announced a round of upcoming layoffs throughout the state of Missouri.
Missouri Prime Beef Packers announced the plan to cut approximately 335 jobs by April 26. Winland Foods was expected to cut 80 jobs by March 31. Oracle announced that it would cut 124 jobs before April 1.
What Is A WARN Notice In The State of Missouri?
The Worker Adjustment and Retraining Notification (WARN) Act primarily impacts employers with over 100 full-time employees. According to the state law, these employers must provide their employees with a 60-day notice before laying off at least 50 people from a single location.
That provides the employees with ample notice of upcoming changes to their employment and allows them to prepare accordingly. The notices are filed with the Missouri Office of Workforce Development as well.
‘Initial Claims…Remain Flat At Very Low Levels’, Claims Chief Economist
Ian Shepherdson, the chief economist and chair at Pantheon Macroeconomics, stated that “initial claims essentially remain flat at very low levels.” However, he focused on the change in the data for the week ending March 23.
Shepherdson admitted that the data from that week was “depressed slightly by imprecise seasonal adjustment for this year’s early Easter.” Shepherdson focused on this as he offered insight into the economic landscape on a broad scale during an interview with Newsweek.
It Will Likely Be Increasingly Difficult For Laid-Off Workers To Find Work
A survey conducted by the National Federation of Independent Business highlighted hiring intentions in general from a statistical standpoint. It showed that there is a decrease in overall hiring intentions in addition to the mass layoffs.
As a result, Shepherdson believes that it could become very challenging for laid-off workers to find jobs. At least, it will be increasingly difficult for them to find immediate employment within their respective areas.
Mass Layoffs Follow Increase In National Unemployment Rate From February
This recent release of data comes shortly after the news of the national unemployment rate increasing earlier this year. For instance, the U.S. Bureau of Labor Statistics showed that there were notable increases of the unemployment rate in Rhode Island, Connecticut, and Washington.
Each state reportedly registered higher jobless rates than the national unemployment rate. The “significant” unemployment rate changes from December to January showed a boost of 0.2 percent in each of those states.
U.S. Borrowing Costs Rise After Federal Reserve Increases Rates
Multiple reports have confirmed that the borrowing costs within the U.S. have continued to rise as well. They are reportedly the highest that they have been in over two decades.
The major change that led to the increase was caused by the Federal Reserve after rates were increases to battle rising inflation costs. As a result, the cost of loans has elevated – which has drastically affected business investments overall.
National Unemployment Rate Increased In February To 3.9 Percent
The national unemployment rate reportedly jumped to 3.9 percent in February, which was a 0.2 percent over the January figure. Studies have shown that this rate has remained under 4 percent for nearly 2 years.
Newsweek reports that workers entering the labor force apparently had a major impact on the figures. One of the reasons why the jobless rate increases in February was apparently due to the increase of people that enter the workforce, according to analytical studies.
Workers Face A Job Market With Millions Of Job Openings
According to the Bureau of Labor Statistics, workers are currently facing a job market that is wide open with millions of various openings. There is a relatively low number of people being laid off or quitting throughout the country.
Further studies show that there were nearly 9 million unfiled positions. Additional data showed that over 5.7 million people were recruited.
North Dakota, South Dakota Boasted Lowest Unemployment Rates In Country
North Dakota and South Dakota boasted the lowest unemployment rates in the United States. On a state level, data shows that the states had respective rates of 1.9 and 2.1 percent.
On the other hand, Nevada had a 5.3 percent of unemployment rate. It went on record as the state with the highest unemployment rate with California coming in second with a rate of 5.2 percent.
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