There are serious economic consequences of the layoffs at the Red River Army Depot notes Gregory Hamilton, Ph.D. of the Arkansas Economic Development Institute in his recently published report.
The layoff of over 550 employees at the Red River Depot near Texarkana, Arkansas, could reduce economic activity in that area by $225 million. The report notes that the regional impact of the payoffs could reduce GDP by approximately $161 million. Additionally, it is expected that the layoff will shrink household earnings by $85 million. The Texarkana MSA will “survive” the layoff, but the job losses will reduce the workers’ economic contributions to the area and accelerate an existing decline in manufacturing for that that the region.