Labor and Layoffs

Labor and Layoffs

There is no doubt that companylayoffs have far reaching impacts. Within the past two years, there have been layoffsfrom larger companies like Amazon, Target, and Google for a multitude ofreasons: technology replacements, company restructuring, and fiscal pressure. Morerecently, Tyson's announcement to close their beef processing plant inLexington, NE have sent shockwaves through the local community, state, and beefindustry. Analysis from the Kansas City Federal Reserve suggest that layoffshave disproportionate effects on smaller communities compared to larger cities.

John McCoy with the K.C. FederalReserve explains Dawson County has around twenty-five thousand residents. Shownin the graph below, this layoff impacts around 23% of the county's total laborforce. The graph below compares layoffs in similar sized counties. Tyson's layoffis second in total share after a 2017 layoff in South Carolina. This is huge incomparison to historic layoffs and shows the immediate impact of a layoff ofthis scale.

Source:Warntracker.com; McCoy, John. 2026. "Mass Layoffs Can DisproportionatelyDisrupt Small Communities." Federal Reserve Bank of Kansas City, EconomicBulletin, February 18.

Furthermore,where this workforce goes will contribute to the scale of these impacts. Verylittle of this workforce is likely to be retained by Dawson County and a goodpart will leave for out-of-state opportunities. In smaller communities, thelabor demand is unlikely to provide for a meaningful percentage of those leftunemployed after a layoff. While this will have imminent impact on net migrationas shown in the second chart, the unemployment rate will in the next threeyears show an increase to a little under 30%.

Source:McCoy, John. 2026. "Mass Layoffs Can Disproportionately Disrupt SmallCommunities." Federal Reserve Bank of Kansas City, Economic Bulletin,February 18.

Beyond the labor market, Tyson's impact will continue toplay out in Dawson County. Schools, local businesses, and local government willexperience economic downturn and reduced consumer demand. Net migration out ofthe county is going to put immense pressure on policymakers and affected governmentagencies both locally and statewide. Pressure to support those impacted by thelayoff and supporting families who are left without their household income willincrease until migration out has stabilized. Overall, the impact of thisclosure will be long term and increasingly negative for those affected.

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