Will Recent Job Cuts At Big OK Companies Affect Local Economy?

Friday, October 25th 2013, 7:25 pm
By: News 9

Some big-name companies in OKC have recently announced hundreds of layoffs ahead of the holiday spending season. The question now is whether or not those job cuts will have any kind of impact on the local economies around the metro.

According to the Greater Oklahoma City Chamber, in fiscal year 2013, companies in the area cut 2,587 jobs. From Chesapeake to Dell to St. Anthony, the cuts affected several of the Oklahoma City area industries. It's not the kind of news anyone wants to hear.

"You always hate to hear about a company doing that," Roy Williams, President and CEO of the Greater OKC Chamber.

That being said, Williams explained the job cuts are better than companies closing down completely, like General Motors did. According to the chamber, the 2,500+ jobs lost should not make a significant impact on the economy.

"Central Oklahoma economy, the gross metropolitan product is north of $60 billion," explained Williams. "That's a huge economy and to move that needle it takes a big, big number and hundreds, maybe a thousand or two jobs probably will not impact that."

According to data from Chamber of Commerce, which is hired by the City of Oklahoma City to track employment numbers, 44% of the companies in the area reported adding jobs during the past three years. Only 3% reported cuts in their workforce. That amounts to only nine companies out of 306 in the area.

In the first 10 months of 2013, metro companies have created 4,393 jobs, offsetting the reported losses. In addition, Williams said he believes the outlook for the area is vibrant with 49% of those companies planning to add positions within the next 36 months.