Yuma feels economic pressure through increased unemployment
Take a long line of carefully placed dominos and knock over the first one. What happens next is a chain reaction - each domino falling into the other and knocking the next one down.
Yuma County's and the nation's economic woes started in a similar way.
They began with the burst of the housing bubble. And by late 2007, the nation was in a recession, although the ripple effects of the downturn didn't reach Yuma County until the last quarter of 2008.
Ken Rosevear, executive director of the Yuma County Chamber of Commerce, said we are faring a little better than the rest of the country in the housing market because we don't have the inventory that other areas do.
But signs of the recession can definitely be seen in Yuma County.
"We're feeling the same effects as the rest of the nation with little or no housing starts, and layoffs pretty much across the board in retail, construction, general business and manufacturing," Rosevear said.
He said when workers are laid off, they don't have money to spend.
Combine that with consumers across the board tightening their wallets and that could spell trouble for the municipal governments.
He said when the tax base falls, counties and cities have less money to spend on their programs.
"It just trickles down," he said.
And that's exactly what happened at the state level with the collapse of the housing market.
Optimistic revenue projections and increased spending left the state with a budget crisis after the housing bubble burst. It affected many of the state agencies and programs that rely on state funds to operate.
Now lawmakers are battling an estimated $3 billion deficit - and partisan politics and infighting have further delayed the 2009-2010 budget.
With the fiscal year beginning July 1, many of the agencies and programs that rely on the state for funding have had to make decisions about the coming year without really knowing how much they'll get from the state.
In Yuma County, teachers were laid off in the biggest school districts, increasing unemployment in Yuma.
The layoffs were also an indicator that the face of unemployment was changing. Suddenly people with experience in the work force and advanced degrees are also competing for jobs.
"It puts monumental pressure on the labor market," said John Morales, director of the Yuma Private Industry Council, a local group that helps Yumans with job placement and training.
Unemployment in Yuma County grew from 16.7 percent in May 2008 to 19 percent one year later. And even though unemployment in the area is generally higher because of the agricultural industry, it reflected the national trend. At 9.4 percent, the U.S. unemployment rate is up 3.9 percentage points from May 2008.
Locally, chains Mervyn's, Linens 'N Things and Ann Taylor Loft have all closed their doors since the downturn began, leaving more Yumans unemployed, and an indication that while somewhat protected, Yuma County is not immune to the nationwide problem.
"It's a pretty vicious cycle when you think about it," Morales said.
The decreased spending also had an effect on local nonprofits, which rely heavily on donations. With decreased donations and revenue from the state, nonprofits are suffering. All of this comes at a time when requests for their services are increasing because more and more people are requesting help for their own financial difficulties.
Rosevear said he hopes the community will "shop local," which is a campaign the chamber is currently running.
He said shopping local can help maintain jobs and keep the tax base in the community.
"Yuma has traditionally gone into these downturns later and came out earlier," he said. "And we're hoping that happens in this instance."
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Stephanie A. Wilken can be reached at swilken@yumasun.com or 539-6857.
