Journal Article

Mass Layoffs Can Disproportionately Disrupt Small Communities


Abstract: The recent closure of a meatpacking plant in Lexington, Nebraska, raises questions about how mass layoffs affect nearby communities as well as the broader regional economy. After sizeable layoffs in similar communities, the local labor force shrank, employment declined, and out-migration increased. Overall, smaller communities have faced large, negative consequences from mass layoff events.

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2026-02-18

Pages: 4