Bureau of Labor Statistics Reports 23,000 Jobs Lost in July
Growing up in a small town in East Tennessee in the 1990s, I remember conversations around the dinner table often included my parents talking about new industries coming to the area.
I was in elementary school when an automotive glass plant, Carlex Glass, opened in my county’s industrial park. Earlier this summer, Carlex Glass announced that after 35 years of operations, it will permanently close the Vonore, Tenn., facility. An estimated 325 employees will lose their jobs. Carlex was one of the largest employers in rural Monroe County, which is nestled in the foothills of the Cherokee National Forest. With other manufacturers slowing operations, it will be challenging for the displaced workers to find work.
Closings Impact to Members, Local Economies and Communities
Sadly, dinner table conversations have shifted from job growth to the latest companies shuttering operations. The impact adds up—more than 700 jobs at the lawn mower factory in Verona, Miss., 117 jobs at the cereal manufacturer in Memphis, Tenn., and 350 jobs at the chicken plant in Chattanooga, Tenn. The loss of these jobs takes a toll on our credit union members, local economies and communities.
These companies have been the backbone of communities for generations.
Employees at Kellogg’s Memphis facility have been making cereal since December 1958. Company leaders selected the site because it was located along the Frisco Railroad, making it easier to receive raw ingredients and transport the finished cereals. An estimated 117 employees were laid off earlier this month as the company modernizes its supply chain. Nearly 200 employees will remain at the facility.
Since the 1950s, chicken trucks have been delivering chickens to the downtown Chattanooga harvesting plant on Broad Street. Pilgrim’s Pride Corporation announced this summer that it will permanently close the aging harvesting facility at the end of September. An estimated 350 employees will lose their jobs.
The Stanley Black & Decker plant in Verona, Miss., originally opened in 1980 as Aircap Industries, an outdoor power equipment company. The manufacturer closed operations at the Verona/Tupelo facility in April. The plant employed 574 workers, plus another 183 temporary workers.
Impact Across the Country
This highlights just a few of the companies closing operations or scaling back operations in Tennessee and Mississippi.
Federal law requires employers with more than 100 employees to give a Worker Adjustment and Retraining Notification (WARN) notice 60 days before a plant closing or large layoff. Keep in mind that these notices don’t capture companies with fewer than 100 employees or the ripple effects on suppliers.
Since June 1, Tennessee has tracked 13 WARN notices. Closures are not limited to manufacturing. The Hard Rock Café in Pigeon Forge will close its doors next week, displacing 61 employees. Just last week, the popular social media app TikTok announced it would close its Nashville office. An estimated 250 employees will be laid off when the office closes in October.
Nationally, employers dropped 23,000 jobs in July, according to new data from the Bureau of Labor Statistics. The July losses were led by local government education, which shed 50,000 jobs, and retail trade, down 19,000. Financial activities lost 14,000 jobs, including 9,000 in credit intermediation and related activities, while health care added 22,000. Financial activities employment is now down 121,000 from its May 2025 peak.
Low-Hire, Low-Fire Labor Market
Last September, then-Fed Chair Jerome Powell said in a press conference that the U.S. economy is in a “low-firing, low-hiring environment.” The term describes the impactful cooldown in job creation across the country.
The phrase “low-hire, low-fire” means companies are hiring fewer people, while also reducing the number of workers they are firing.
Ultimately, this means anyone looking to find a job is struggling, from recent college graduates to seasoned workers.
In addition to recent college graduates looking for entry-level jobs, mid-career employees are struggling as well. Fortune reports that mid-career workers who have lost their jobs are turning to part-time work, while hiring has slowed across industries ranging from professional services to manufacturing. More than a quarter of unemployed workers have been out of work for more than six months—the highest share since the mid-2010s, excluding the pandemic years.
In short, the Tennesseans and Mississippians who were recently laid off are facing an economic crisis. Here are three ways your credit union can help impacted members.
Three Ways Credit Unions Can Help
- Learn About Closures in Your Community
- Stay ahead of the latest layoffs and closures in your area by visiting your state’s Worker Adjustment and Retraining Notification (WARN) and Closure/Layoff Reports. Remember, the WARN reports do not track companies with fewer than 100 employees.
- Tennessee WARN and Clsure/Layoff Report
- Mississippi WARN Information
- Create a Plan to Help Impacted Members
- Identify how many employees are affected and whether they are existing members.
- Reach out to affected members with information about loan payment options, budgeting assistance and financial counseling.
- Consider temporary payment accommodations where appropriate and consistent with the credit union’s policies.
- Make sure frontline employees know how to respond to questions about lost income, severance and benefits.
- Offer Financial Education to Impacted Members
- Managing finances during a period of unemployment
- Building a short-term budget
- Prioritizing bills and debt payments
- Understanding severance and unemployment benefits
- Avoiding predatory lending and financial scams
- Preparing for a job transition
Advocate for Your Impacted Members
The financial well-being of credit union members is essential to the strength and success of the credit union movement. Please reach out and let us know how layoffs are affecting your members. This information helps our Advocacy Team share the real-world impact with lawmakers and advocate for policies that support credit union members and their communities.
