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...eaton manufacturing plant in Roxboro, N.C., makes a 3-in. gadget called a lash adjuster that keeps pressure constant on engine valves, increasing fuel efficiency. Last year Brian Whitfield, a supply-chain analyst at the factory, had plenty of work scheduling orders for raw materials, components and packaging. But with the collapse of GM and Chrysler, business ground to a halt, and when Whitfield arrived at his cubicle on Jan. 20, he found an e-mail from management announcing layoffs. He looked around and saw people leaving, carrying boxes. Then his boss called him into the conference room. "Basically...

Author: /time Magazine | Title: The Ripple Effect | 9/21/2009 | See Source »

...first week of unemployment was hard to take. Fortunately, Whitfield has a wife, Debbie, who earns $39,000 a year as an accountant for the local county government. The couple didn't have to worry about losing their cozy, well-kept home or being able to take care of their 4-year-old son Logan. After Brian's eight-week severance ran out, he started collecting unemployment insurance and the Whitfields began reining in spending to cover what they expect will be a 40% drop in income this year.(See how Americans are spending...

Author: /time Magazine | Title: The Ripple Effect | 9/21/2009 | See Source »

Though it has been painful for him, Whitfield's lost job should have had little effect beyond his immediate family. One lost job is a microscopic event in the massive organism of the U.S. economy. In good times, America sheds 2.5 million jobs a month but creates nearly 3 million new ones. Rolling unemployment allows businesses to adjust to demand, improving efficiency and fueling growth. A healthy economy compensates job losers by creating new jobs for them. America's economic athleticism has been the envy of other countries, a key to its success...

Author: /time Magazine | Title: The Ripple Effect | 9/21/2009 | See Source »

...made lake that actually serves a business purpose. The south end of Hyco Lake feeds cooling water to a massive power plant owned by Progress Energy. The plant employs 268 people and generates up to 2,425 MW of electricity. In January, just after he was laid off, Whitfield called human resources at Progress to see about a job. The Roxboro power plant employs six supply-chain analysts, says Harry Sideris, the plant manager, but he doesn't need any more. Even if he did, Sideris says, Progress has a soft hiring freeze in effect and is filling only essential...

Author: /time Magazine | Title: The Ripple Effect: What One Layoff Means For A Whole Town | 9/11/2009 | See Source »

...That's too bad, because according to John Donaldson, president of CertainTeed Gypsum, the plant would have needed a supply-chain analyst. Someone like Brian Whitfield...

Author: /time Magazine | Title: The Ripple Effect: What One Layoff Means For A Whole Town | 9/11/2009 | See Source »

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