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Texas, Florida Hit by Manufacturing Layoffs - Newsweek

Layoffs in the manufacturing sector in Texas and Florida contributed to a jump in the number of workers who applied for unemployment benefits for the week ending June 8, according to data from the U.S. Labor Department.

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Texas saw more than 2,300 new applications for unemployment—the most claims requested for a month since March, data shows—and brings the state's total to about 17,200.

While the week's data showed a jump in layoffs, the number of workers who sought jobless benefits were way below the 315,000 on April 4, 2020, as thousands lost work because of COVID-19-induced economic upheaval.

manufacturing
A packaging line at a health food manufacturing plant. Layoffs in manufacturing contributed to a jump in jobless benefits claims in Texas and Florida. A packaging line at a health food manufacturing plant. Layoffs in manufacturing contributed to a jump in jobless benefits claims in Texas and Florida. Stock Photo/Kevin Burke via Getty Images

The state suggested that those who applied were from "layoffs in manufacturing, retail trade, administrative and support and waste management and remediation services, and in health care and social assistance industries," according to the Labor Department.

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Florida saw 8,900 new unemployment claims for the week ending June 8, a jump of more than 1,840 from the prior week, with manufacturing workers among those seeking benefits.

"Layoffs [were] in agriculture, forestry, fishing and hunting, manufacturing, wholesale trade, retail trade, and in service industries," the Labor Department said.

The number of unemployment claims was the highest since October 22, 2022, data showed. The current number of workers who faced job losses and are seeking support was substantially lower than the more than 500,000 at the height COVID economic crisis.

Both states have rebounded from the COVID-related job losses. The unemployment rate in Texas was 4 percent, which has plunged from 13 percent four years ago. Florida's jobless rate was at 3.3 percent after hitting 14 percent in 2020.

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Data from Florida shows that the state had more than 428,000 manufacturing jobs as of April 2024, an increase of 8,700 compared to the same time a year ago, according to state data. Texas boasted nearly 970,000 workers in the manufacturing sector, a jump of 18,000 compared to the same time a year ago, government data shows.

Texas has in recent months lost some manufacturing jobs. Electric car maker Tesla announced job cuts from its Austin plant, where the company said it was shedding what amounted to 12 percent of its labor force in April. The number of those affected will come to nearly 2,700 set to begin in June 14.

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