With the highest unemployment rate in the nation at 12.9%, Michigan is also going to experience the closing of seven of the fourteen GM plants; although, some will be put on standby.  What a major blow to an already suffering economy.  Currently, about half a million of the state’s workers already receive unemployment benefits.

Michigan GM plants closing this year include the Orion Township plant, a stamping plant in Grand Rapids and Pontiac’s truck assembly plant.  Next year, transmission and engine plants will close in Livonia, Flint and Willow Run. Pontiac’s stamping plant will be idled by 2010.

Of the 438,000 employees laid off in Michigan since 2000, the majority were in the auto industry.  This latest GM announcement anticipates laying off 18,000 to 20,000 employees.  That’s a whole lot of displaced workers.  That’s not the end of the story, though; suppliers, dealerships and local economies will suffer, too.

One of the sad notes to this already sad story is that many of GM’s workers facing unemployment have resigned themselves to accepting positions that pay much less than their current salaries.  Jackson regional operations manager for Swiss-based Adecco SA, Christina Bristow, stated that displaced GM employees have taken advantage of the retraining offered by GM.  The problem she says, however, is that there aren’t many jobs out there other than tourism and seasonal positions.

Based on past history, these layoffs could translate into more foreclosures or homes on the market, further reducing the value of real estate.  One of the results would be lower home values.  The bottom line is that all this will end in a huge blow to the already slumping economy of the local communities and the state.

We here at Roost give a shout out to all those who are affected by this GM announcement and want you to know that we’re for you.  Hang in there!