When the Momence Packing Company, successful Illinois abruptly unopen its doors connected June 2, 274 radical recovered themselves jobless.
It was a gut punch to a tight-knit assemblage that has worked astatine the installation — a pillar of section employment for implicit six decades, primitively built successful 1962 and tally by Johnsonville Foods arsenic a sausage shaper since 1995.
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What went wrong?
Employees were called to a gathering successful adjacent Kankakee wherever the Johnsonville CEO delivered the shocking news: the Momence installation was closing, effectual immediately.
Among those affected was Lupe Hernandez, a 25-year veteran, who told ABC7 News, “It’s similar they didn’t adjacent attraction astir us, you know? [The] aforesaid day?"
Momence politician Charles Steele said helium lone got a 15-minute heads-up from the company. Other section leaders were blindsided too.
“It’a conscionable precise devastating. Very heartbroken… What tin we do?” asked Hernandez.
"When I was retired determination a mates weeks ago, the works manager talked astir implicit $1 cardinal worthy of instrumentality that had precocious been installed," recalled Tim Nugent, president and CEO of the Economic Alliance of Kankakee County.
"If they're investing successful infrastructure, it means that they made plans to enactment astir for a while," which made the closure consciousness abrupt and contradictory.
Johnsonville stated, "We made the hard determination aft evaluating however champion to optimize our operations web to code existent and aboriginal growth. This determination was based connected optimizing our operations crossed our different newer facilities."
The institution besides pledged to proceed providing wage and benefits to impacted workers for 60 days. That’s immoderate help, but Hernandez planned to enactment for 3 much years to wage disconnected her house.
The newer facilities see 2 successful Wisconsin and 1 successful Kansas. Johnsonville expects to make astir 100 caller jobs by the extremity of its 3rd 4th betwixt the 2 Wisconsin locations. It plans to demolish the Momence installation by the extremity of the twelvemonth and transportation its assets to different facilities.
Read more: Want an other $1,300,000 erstwhile you retire? Dave Ramsey says this 7-step program ‘works each azygous time’ to termination debt, get affluent successful America — and that ‘anyone’ tin bash it
Unemployment successful America — and getting done pugnacious times
As of May, the U.S. unemployment complaint stood astatine 4.2%, akin to what the country's seen implicit the past year.
While jobs proceed to beryllium added — 139,000 positions successful May and 177,000 successful April — play unemployment benefits claims are ticking up. In the week ending May 31, 247,000 archetypal applications were filed. This is the highest since October.
Unemployment oregon reduced income importantly increases the hazard of falling into user indebtedness traps. Without a accordant paycheck, radical often trust connected recognition cards oregon loans to conscionable basal expenses. U.S. recognition paper indebtedness topped $1.18 trillion successful Q1 2025.
And for those nearing status age, losing a long-held occupation tin spark fiscal crises involving owe payments, dwindling savings and wellness attraction expenses. Hernandez is an illustration of 1 specified Johnsonville worker, arsenic she planned to enactment 3 much years to wage disconnected her home.
What affected workers tin do
File for unemployment benefits With 60 days of paid benefits, these workers should instantly record claims to trim income gaps.
Tap section resources State-sponsored vocation centers and assemblage colleges supply resume help, certifications and people enrollment astatine small oregon nary cost.
Pivot rapidly to part-time oregon gig work Delivery driving, warehouse roles, administrative jobs oregon trades whitethorn service arsenic interim income sources. Many workers tin besides instrumentality seasonal jobs portion searching for a longer-term replacement role.
Reassess status and indebtedness strategy For those adjacent to retirement, delaying status and tightening budgets whitethorn beryllium indispensable until caller employment oregon savings bridges the gap.
Rebuild fiscal resilience Workers tin usage the situation to commencement an exigency money — a tiny amount, specified arsenic $25 per week, tin yet physique a buffer.
Retrain Exploring occupation grooming oregon apprenticeships aligned with section demand, specified arsenic healthcare oregon logistics, tin connection a caller start.
What to work next
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This nonfiction provides accusation lone and should not beryllium construed arsenic advice. It is provided without warranty of immoderate kind.