Economists say Greenheck layoffs could impact economy - WAOW - Newsline 9, Wausau News, Weather, Sports

Economists say Greenheck layoffs could impact economy


by Colby Robertson

MARATHON COUNTY (WAOW) -- A big slowdown in commercial construction means more layoffs for Greenheck workers. The company announced a fourth round of layoffs.

This time 58 employees from the Schofield plant will lose their jobs. That means nearly 300 Schofield workers have been let go in the past year.

UWMC Professor Hamid Milani says these cuts have the potential to have a big impact on the community because of what he calls a, "multiplier effect."

"There's just economic analysis that there is a multiplier effect, so if one dollar is cut, potential two dollars is going to be lost in the community," says Milani.

Essentially, this means if the workers cut make a $100,000 all together, hypothetically, that means the economy is going to to lose $200,000.

In an effort to minimize the economic impact, Greenheck leaders are making the Schofield factory employees take six unpaid furloughs between now and the end of the calendar year.

Office employees will be asked to take five furloughs.

There is no sign of future layoffs, but a press release did state that they felt this current round of layoffs were necessary because there's no sign of improvement in non-residential construction, in the coming year.

In fact, industry forecasters expect an even bigger decline well into 2011.

Online Reporter: Colby Robertson

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