Lawrence and the economy
- Local business climate growing colder: Experts offer tips to survive recession
- Second Chance closes its doors
- Auto repair industry thrives
- Real estate market looking up
- Government hit with budget cuts
- More people buying cheaper food basics at grocery stores
- Slow sales hurt artists, but work still on display
- Man moving on after layoff, bankruptcy
- Home-building enters another year on decline
- Army interest
Economic impact
Is the economy adversely affecting you and your family? We’d like to hear about it. Call reporter Mike Belt at 832-7165 or e-mail him at mbelt@ljworld.com. Please include your name and how to contact you.
When the national economy started its downward slide, Jennifer Harrell was one of its early victims.
The 34-year-old civil engineer from Lawrence was laid off in September 2007 from a job she had with a small engineering firm in suburban Kansas City.
The construction business was declining, and demand for designing storm sewers and streets for private commercial and residential developments also was dropping.
“The private sector wasn’t doing very well at all because the housing market was down,” Harrell said recently.
She got another job three months later in Topeka. Because of job requirements, she needs to move to that city, and that brought her a new problem. She’s been unable to sell her townhouse.
Growing problem
More than a year after Harrell was laid off, a growing number of Lawrence area residents are facing the same problems she encountered. Several businesses have laid off employees for economic reasons, and a few have even closed. Locally, unemployment is up and so are mortgage foreclosures. Housing sales are down, as are sales tax receipts and property values.
City, county and state governments are facing severe budgeting problems. So are the Lawrence school district and Kansas University. Vacant positions are not being filled and some layoffs are planned. Programs and services are on the chopping block.
This year, the Journal-World will take quarterly snapshots of the Lawrence economy. Stories will be told that describe how national and world economic conditions are affecting the city. We will monitor the economic downturn and, it is hoped, the recovery. We will give you the basic facts and numbers, and tell the stories of people such as Harrell and how they are handling economic difficulties.
We’ll also talk with the experts who offer tips about how to survive the recession, credit crunch and related matters.
While Lawrence has its problems, those who monitor local and state economic issues agree that the problems here won’t be as bad as many other areas of the country will experience.
KU’s stability
One of the main reasons is KU, which employs 9,396 people. It is the city’s largest employer. Historically KU has been a stable entity during bad economic periods. The university, however, isn’t untouched by economic troubles. Last month KU leaders announced that 11 jobs were being eliminated and 110 job openings will not be filled. Years of declining state funding has meant KU needs $316 million in maintenance work.
“The university is going to have budget cuts, but I would imagine it’s going to continue on pretty strongly,” said Art Hall, executive director of the Center for Applied Economics in the KU School of Business.
Lawrence has weathered other economic storms, said Shirley Martin-Smith, owner of Martin-Smith Personnel Services, an Adecco franchise. In the 1980s, a few major employers went out of business, including All-Star Dairy and Stokley-Van Camp, she noted.
Since then, Lawrence’s job growth has been in government, mainly the city, state, county and also at KU and in the public school system, Martin-Smith said. Twenty years ago, 8 percent of the labor force commuted and now it is three times that, she estimated.
“Not everybody works in Lawrence,” Martin-Smith said. “A few jobs here and there, and that adds up.”
Comments
LJWorld.com doesn’t necessarily condone the comments here, nor does it review every post. Read our full policy. Also, read about banned accounts and harassing comments.
srj (anonymous) says…
I do see houses move in this town. Houses do sell for the right price, but if she bought that house this decade, she will lose money or brake even. Man, did we all over pay for houses!Honestly, if you work in Topeka, you might as well live there, it's a lot cheaper and most areas there are fine.
been_there (anonymous) says…
I find it funny that the crossing guards here are losing their jobs and Olathe and Johnson county are advertising in Lawrence for crossing guards at $11.50 an hour. It appears to be through an employment agency, but I could be wrong. But if it is then they are getting a cut too, so it probably is more like $15 an hour. Lawrence crossing guards are a real bargin.
stevieags (anonymous) says…
It's going to be difficult for any president right now to fix our economy. I think you will see a lot more people inquiring about joining the military. I have served now for over 8 years and love it. It's stable and you earn a pay raise each year. You control your own destiny regarding your rank. If you perform exceptionally then you will be rewarded. We need to be prepared for the next 5-10 years. It's going to be a long road ahead. I'm not a psychic but I think it is evident that the economy is going to get worse before it gets better. I feel for all of those individuals that are struggling to make ends meet and who have a family that they have to support. Best of luck to all of those umemployed folks out there.
Piggles (anonymous) says…
It is really sad- a lot of businesses in the East Hills area are letting a lot of people go. Amarr, Progress Vanguard, Sauer Danfoss and Kinedyne too- they let 17 people go after Christmas and shut down 2nd shift and just let another 20 people go recently. No one buying nets from the net facility. Real shame. Keep wondering when this situation will end??? I agree with stevieags- I think it will get worse before it gets better and you are going to have a lot of people applying for couple of postions that are open. I am going to try my best to really pinch my pennies and cut back on trivial things that are not necessary for my everyday living. Everyone all take care. . .
zettapixel (anonymous) says…
I really can't say I feel that sorry for people being affected by the economic downturn. Most people just over spent, under saved, and tried to live high on the hog. Some of us lived within our means and are now using the stock market downtown / housing market collapse / recession to our advantage and buying up equities and houses at bargain basement prices. Always make sure you have at least 6 months worth of living expenses so that if you get laid off, you can survive until you find a new job.Always pay off your debt and don't rely on credit to make purchases if you can't pay it off in full before you start accruing interest.When investing, stick to index funds. You don't have the costs associated with managed mutual funds and the results usually outperform the bulk of managed funds. Investments should be 100-Age in stocks (think S&P 500 index fund, Russell 2000 index fund) and the remainder in bonds, CDs, and other investments that aren't as risky as stocks. So in other words if you're 25, you should have 75% of your investments in equities (stocks / stock index funds) and 25% in more liquid investments (CDs / bonds / bond funds). When you reach 65, you'll want just 35% in equities and 65% in less risky investments.Anyways, just my 2-cents worth on the matter.
dandelion (anonymous) says…
You control your own destiny regarding your rank. If you perform exceptionally then you will be rewarded.Unlike the executives who have run our economy into the ground and still want to be paid millions. There are many honest business people out there who were passed up for executive jobs, because they promised stability, not flash in the pan, get rich quick schemes that were bad for a company. Why not insist that companies look in their lower ranks to find that steady, capable person to run their company. The ones, who if they were in the military would have been the leaders. If these rich reckless executives had been in the military, they wouldn't have lived long enough to have been promoted. They would be dead by now.
Thinking_Out_Loud (anonymous) says…
Thanks, zettapixel, for the simplistic advice!
karmaxs3 (anonymous) says…
Hey Zettapixel....not everyone affected by this downturn fall into your category of "people who deserve it" For instance, picture this. A couple with a small child who sold their home in a small town like Lawrence for a nice profit. They moved to a big city where the husband could get paid a better wage to do a job. They put 20% down on their home that they could afford with no problem. They got a 30 year fixed mortgage with a reasonable interest rate. They have a retirement plan and a savings account with several months of living expenses.Now, the home they bought is worth so much less that they would owe more to the bank than they put down IF they were able to sell. The husband is out of a job due to his professional field being tied to the construction industry. Jobs are scarce, and many are looking. They have another child.Unemployment benefits are $240/week. They are too rich to qualify for food stamps because of said home, cars, and retirement plans~even with NO income. So...Zettapixel. Have some freakin' compassion for those of us out there who lived right and got screwed anyway. There are plenty, and while Lawrence may not have them yet, it's coming to a town near you soon....
workinghard (anonymous) says…
I guess when you charge $100 an hour you can afford to look down on others.
sk_in_ks (anonymous) says…
My $.02...If you still have a job and are in good financial shape, look for ways to help out others who are struggling. Food banks, health and dental care clinics, and other organizations that provide much-needed services will have to serve more people just as any state and local funding they get is shrinking. There are plenty of hard-working people who don't have health insurance or even sick leave at their jobs -- one serious illness can be a financial disaster for them. So even those who haven't lost jobs may be hit hard in this recession.The people who are struggling during these hard times are our neighbors; if we all pitch in, we can help make the difference between hard times and a catastrophe.
KEITHMILES05 (anonymous) says…
The poster who said we control our own destiny is pretty much right on.For every person who is in financial straights more than likely they over indulged in buying too many cars, big screens, computer gadgets, ate out too much, fancy vacations, took out equity loans in their homes, and on and on.I bet dollars to donuts very, very few people are true "victims."The thing that blows my mind are those who thought the market would forever satisfy their needs. Sell home, use equity to buy a home twice the cost, market falls, then they wonder what happened. On top of that then job cuts start happening.We all pay for choices we make.
Thinking_Out_Loud (anonymous) says…
We do all pay for the choices we make, keithmiles05. Some of the consequences are out-of-proportion with the decisions made. Read Barbara Ehrenreich's book "Nickle and Dimed" for a case study on the working poor. If you choose to read it, keep in mind that this isn't a scientific study, just someone who decided to carry on a little experiment as to what it is like to be a member of the working poor.
been_there (anonymous) says…
Well instead of telling people what they did wrong , I will pass on a tip that a friend passed on to me. If you are an AT&T customer and your cell phone breaks, you do not have to pay full price for a new phone if you're not due for an upgrade or sign a new 2yr contract. Your chip will work in their go phones, They are the same phones just put your chip in. Even better go online and shop for thier refurbished go phones, you can get some nice ones for $20 to $50. If your not picky you can get one for free. I have gotten some really nice ones. They send you a go phone chip with a new number, just throw it away, put your chip in, and you are set. In fact, order one now so you have it ready if yours is lost or stolen and you don't have to wait 2 days (they come really fast) for the phone to get there.
mom_of_three (anonymous) says…
Not everyone lives above their means, and those same people will have problems if their jobs are lost because of the economy. Young professionals or workers who are just getting started and don't have savings, and will need help if their jobs are lost. Even though it is wise to save for a rainy day, not everyone has the amount saved to get by without a job for an extended period of time. And it's not about having too many cars or things. It's about getting braces for the kids, paying for school, and paying for things a family needs for every day living.
karmaxs3 (anonymous) says…
Big Screens: got noneKids: got twoCars: got two~one is paid in full the other is a moderate family car, not gas guzzling SUVEating out: less than once/month even when not worried about things. My crock pot is my best friend.Home equity loans: what equity? Nope. Not here.Fancy vacations: honeymoon in 2000. nothing since but to see family in various US locationsSold home, got higher paying job, bought house twice as expensive because we could afford it based on incomekeith~we don't wonder what happened. We see very clearly what happened and what is happening. The rich are getting richer~justifying it on the "greed of the middle class" while the true middle class are getting screwed.Your view of society is highly skewed. Wake up. People don't have to live beyond their means to fall upon hard financial times, or didn't you have any relatives alive during the great depression?
karmaxs3 (anonymous) says…
Oh yeah, about debt? We had none but our one car and our house. Keep telling us we made bad choices. Seems to me the only bad choice we made was industry of career or to move when we did.
karmaxs3 (anonymous) says…
I just thought of one bad choice. To read the comments on this page. All it's succeeding in doing is inflaming my already sky-high level of anger about all this by the ignorance of the world's economic situation displayed in a supposed educated community.