Jobs Leave Scranton
Factory Losses Deal Tough Blow to Pennsylvania Community

Listen to NPR's John Ydstie report on Scranton.

Listen to John Ydstie's report on the U.S. telecom bust.

Aug. 14, 2001 — Earlier this year, the Scranton area economy was riding high, with local factories in the northeastern Pennsylvania community announcing plans to add thousands of well-paid workers.

Bob Anderson sports a home-made sombrero to protest Thomson's move to Mexico. Photo: Christine Arrasmith, NPR

But the sharp slowdown in U.S. economic growth and the cross-currents of globalization have left their mark: More than 2,000 manufacturing jobs have been swept out of the Lackawanna Valley in the past six months, NPR's John Ydstie reports on Morning Edition.

Contributing to the job loss: An expected boom in demand for telecommunications equipment suddenly turned into a bust for many companies, including those that had plans to expand in Scranton. Telecom equipment manufacturers Corning and FiNet as well as battery maker Exide Technologies announced plant closings and layoffs.

"It's an unhappy disappointment, but what could you do?" says Andrew Johnson, who was wrapping up work at the Corning facility. "It's just something that happens. It happens every day in America…Nobody's job is secure."

From left, Debbie, John, Joan and Jessica Schaefer at table in Revello's Cafe. John Schaefer is skeptical of Chamber of Commerce efforts to boost jobs. Photo: John Ydstie, NPR

But, the toughest blow was the loss of Thomson Consumer Electronics' TV picture tube plant. Thomson announced in May that it's shutting down in Scranton and moving production to Mexico, where labor is 80% cheaper.

Bob Anderson, one of 1,100 workers laid off at Thomson, is 43 and has been working at the TV tube plant since he was 19. "It's practically the only job I ever had. And I'm not certain what the real world is really like."

Some Scranton residents fault political and business leaders who they say have given up on manufacturing and now just want to attract lower-paying service sector jobs. For community leaders, Montage Mountain, a skiing and sports resort, represents the future of Scranton. They also boast of financial services firms that have located in the area.

Scranton Jobs Data • Manufacturing employment: -2.7% in June vs. year ago (prelim.) • Service employment: +0.3% in June vs. year ago (prelim.) • Unemployment rate: 5.4% (June 2001); 5.1% (June 2000) • Lackawanna County private non-farm employment: +3.2% from 1990-98 • Pennsylvania private non-farm employment: +6.7% from 1990-98 Sources: U.S. Census Bureau, Dept. of Labor

"We have some great employers," state Sen. Bob Mellow says. "You know, Fleet Bank is located not very far from where we're at. Cigna has put up a new operation and they're going to employ well over 1,000 people."

Retraining is the government's answer for workers left jobless by the churning of the global economy. But so far only Thomson workers have qualified for the free training provided to workers displaced by trade. And they've received a generous severance package from the company, including extended health care benefits. But many of the other workers laid off in Scranton this year will get little help beyond 26 weeks of unemployment benefits and some free career counseling at the local employment center.

Other Resources

• Montage Mountain, a ski resort which community leaders see as the future of Scranton

• Team Pennsylvania CareerLink, which offers employment and training services in the state.

• The Greater Scranton Chamber of Commerce

• Thomson corporate Web site