New unemployment numbers show the impact of a major plant closure in central Nebraska.
In Dawson County, the unemployment rate surged from 3.4 percent in January to an estimated 16.9 percent in February following the closure of a Tyson Foods plant that cut roughly 3,200 jobs.
That’s an increase of more than 1,600 people out of work in just one month, giving Dawson County by far the highest unemployment rate in the state.
But economists warn the longer-term impact could be even more significant. A recent economic bulletin from the Federal Reserve Bank of Kansas City finds mass layoffs tend to hit smaller, rural communities especially hard, often leading to a shrinking workforce, declining employment, and increased out-migration.
In fact, the Lexington closure impacted more than 20 percent of the county’s labor force, making it one of the largest such events in decades for a community of that size, according to the study.
Statewide, Nebraska’s unemployment rate rose to 3.5 percent, as lawmakers and local leaders now look at ways to support recovery.
