Jobless picture to brighten in 2010?

If there was any doubt that a recession in the United States, unemployment rates in Jay County over the last year show that something has definitely been amiss in the economy.

During the last 15 months, unemployment bounded from six percent to more than double that as it hit a high of 12.1 from May through July this year.

Local companies started laying off employees to compensate for decreasing business and two manufacturers in Portland closed down during the hard summer months this year.

At its low in September 2008, the unemployment rate sat at 6 percent. But from that point on, rapidly increased, jumping to 9.6 percent in January 2009 when F.C.C. in Portland announced a major layoff of 96 employees.

The unemployment hit its high point in May when it rose to 12.1 percent. In May, International Paper, Portland, closed its plant, putting 31 workers out of jobs.

In June, the unemployment rate remained the same, but Mars Petcare, Portland, closed down, costing 51 jobs. Mars, which underwent a $12 million expansion in 2007, fell victim to decreasing demand and caught local officials off guard.

Since July, the last month the rate held at 12.1 percent, the situation has improved, as Jay County Development Corporation director Bill Bradley said companies began calling back employees on a slow basis.

There have also been positive signs potentially clueing a recovery. In March, owners Jim and Vickie Lochtefeld announced they would build and open a Buffalo Wings and Rings franchise in Portland, leading to about 25 new jobs. That restaurant opened earlier this month.

In September, Steve Geesaman, owner of Geesaman Industries, announced his company would be expanding in Portland, bringing between 50 to 100 jobs to the city once the plant is up and running. Also that month, Jay Products requested a tax abatement from the Portland City Council, stating that 27 new positions would be created. Bell Aquaculture, Redkey, requested an abatement from the Jay County Council, which would create 10 new jobs. Both abatements were approved in October, keying in those expansions.

So is there a clear path to recovery for Jay County in 2010?

"I'm optimistic," Bradley said last week. "I'm not guardedly optimistic any more. I think 2010 will be better than 2009."

Bradley said during an economic downturn, while companies recover, they tend to be cautious about bringing back laid off employees or starting with new hires in case the economy lapses again.

"The big lagger has been the unemployment," he said. "It's one of the last indicators to really come on line that things improve." The jobless rate has caused other problems on the state level besides the obvious economic impact, as the state suffers the burden of providing for those out of work.

"As you know, the unemployment rate has been extremely high," said State Rep. Bill Davis (R-Portland). "We owe the federal government, right now, about $1.5 billion in unemployment funds we've borrowed from them."

Although unemployment has sapped the state's economy, Davis said around Indiana, there has been some growth, but it's been eclipsed by decline.

"Indiana, through all of this has continued to create jobs and bring new jobs to Indiana," he said. "Unfortunately, because of the downturn we haven't been able to create them as fast as we've lost them."

If the state truly is on the road to recovery, however, the end results could be positive and create an even stronger economy for the future.

"Once the economy turns around, you're going to see Indiana is going to be much further ahead than a lot of states," Davis said. "Simply because we are continuing as we speak to attract new jobs.

"Indiana is far better off than most of the states in the Midwest and one of the better states in the country because of our fiscal status right now," he added. "People are looking at Indiana now because we haven't had to raise taxes, because we haven't had to do mass layoffs especially in our education area.

"We believe that if we can get the economy moving again, as we turn that corner, Indiana is going to be in far better position than most of the states around us in job creation," Davis finished.

Bradley's said once unemployment deflates and consumer confidence returns, the economy should right itself.

"I think we're going to see continued progress particularly on the job front which is where people need to see improvement," he said. "That helps to stimulate to people to go out and buy, produces demand, produces jobs."

And, he said, the recession has given a dose of reality to Americans to be responsible with their money.

"The positive thing out of this, our savings rate has gone up," he said. "And that's probably not a bad thing for people to live within their means."[[In-content Ad]]