Mass Layoffs Can Disproportionately Disrupt Small Communities

John McCoy

Economic Bulletin, 2026, 4

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.

Date: 2026
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