Local layoffs again part of weekly economic review

Fort SmithNews on the Wire

by The City Wire staff ([email protected]) November 21, 2008 5:13 pm 84 views 

The City Wire economic review for the week of Nov. 17 – Nov. 21:

• Arkansas’ unemployment rate rose five-tenths of one percent to 5.4 in October, well above the national rate of 6.5 percent. Manufacturers in the state have shed 5,800 jobs in the past 12 months. Link here for The City Wire report.

• On Tuesday, Jarden Plastics Solutions announced it will close its Fort Smith plant in January, eliminating 93 jobs. The Greenville, S.C.-based company cited “declining demand” from its largest customer — Whirlpool Corp. — as a reason for the closing. The plant opened in Fort Smith in 1976.

• Wal-Mart Stores Inc. President and CEO Lee Scott is stepping down after eight years at the helm of the world’s largest retailer, the company announced Friday morning. Mike Duke, vice chairman of Wal-Mart’s international division, will assume the title of president and CEO effective Feb 1. Scott will continue to serve as chairman of the company’s executive committee.

• The FDIC will guarantee up to $1.4 trillion in U.S. banks’ debt for more than three years as part of the government’s financial rescue plan. The directors of the Federal Deposit Insurance Corp. voted Friday to approve the plan, which is meant to break the crippling logjam in bank-to-bank lending.

• The Dow rose 494.13 points to 8,046.42 on Friday. However, the Dow is down 5.31 percent for the week. Paper losses for the week in U.S. stocks came to $1 trillion, according to the Dow Jones Wilshire 5000 Composite Index, which reflects nearly all stocks traded in America.

• The Consumer Price Index for All Urban Consumers (CPI-U) fell 1 percent in October, according to a Bureau of Labor Statistics report issued this week. The October level of 216.573 (1982-84=100) was 3.7 percent higher than in October 2007.

• On Friday, light, sweet crude for January delivery rose 51 cents to settle at $49.93 a barrel on the New York Mercantile Exchange. Oil prices have fallen more than 60 percent during the last four months after reaching $147.27 in July.