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Tracking the Recession: How Layoffs Affect One Small Town
Wednesday, March 25, 2009 7:03 PM


(Source: Stateline.org)trackingBy Stephen C. Fehr, Stateline.org

Mar. 25--Dec. 9 began like any other Tuesday for Connie Schlim. She and her husband, Clyde Schlim, reported to work at 5 a.m. at Scotchman Industries, a small manufacturing company in Philip, S.D.Five minutes later, a supervisor told Connie Schlim that Dec. 9 would be her last day at Scotchman after 11 years. Clyde Schlim, 59, whose only job after high school had been at Scotchman, was let go a month later, though he left with an early-retirement package.

Connie Schlim, 52, was one of the 524,000 Americans who lost their jobs in December. She represents a miniscule fraction of that total, but her story shows that behind the numbers are the faces of real people in places like Philip, which has about 800 residents. Some are going through more pain than others, but all share the experience of a boss telling them they are a casualty of what could be the worst recession since World War II.

Today, three months later, Connie Schlim is collecting $260 a week in unemployment benefits and looking for work to replace the $12.50-an-hour job she had changing parts on a milling machine. But like many victims of this recession, Schlim says she feels trapped because there are no other jobs available nearby and no new employers coming to Philip. Other than the local hospital, Scotchman is the largest employer in Philip, with 72 people after the cutbacks. The Schlims are resigned to stay in Philip but say they will cut back on expenses.

"Our golden years won't be as golden as we had planned on," said Schlim, who has two grown daughters.

In past recessions, people like the Schlims could have considered moving to another state that was adding jobs. If you lost your job in South Dakota, you might have found work in California. But the downturn that began in December 2007 is notable for its depth and breadth. Every state has been hit.

"There is no refuge," said Mark Zandi, chief economist at Moodys.com. "If you lose your job, there's no place to go."

The remaining 72 people at Scotchman Industries are so determined to stay and work in Philip that they told the owner, Jerry Kroetch, they would agree to work fewer hours instead of see any more of their co-workers lose their jobs. The nearest cities, Rapid City and Pierre, are about 85 miles away, but it's not as if jobs are plentiful in those cities, especially in manufacturing.

Sanmina-SCI, an electronics manufacturing company, will shutter its Rapid City plant in June, severing 275 jobs. Hutchinson Technology, another electronics company, cut 275 employees at its Sioux Falls plant in January.




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