WARN Act Layoffs in Perry County, Indiana

In-Depth Analysis: Layoffs in Perry County, Indiana

# Perry County, Indiana Layoff Analysis: 2017 Case Study

Overview: A Concentrated Shock to Perry County's Workforce

Perry County experienced a significant employment disruption in 2017 when two major employers filed Worker Adjustment and Retraining Notification (WARN) notices, collectively affecting 268 workers. While this represents only two WARN notices in a single year, the concentration of job losses within a county of Perry's economic scale created a meaningful labor market shock. To contextualize this disruption: Indiana's statewide unemployment rate stood at 3.3 percent in February 2026, suggesting a relatively healthy labor market at the state level. However, the sudden removal of 268 jobs from Perry County's employment base—particularly when originating from just two firms—created localized economic stress that transcended the broader regional recovery narrative.

The significance of these layoffs becomes apparent when considered against Perry County's overall economic base. As a rural county in southwestern Indiana, Perry County lacks the economic diversification of larger metropolitan areas and relies heavily on manufacturing and specialized service sectors. The layoffs therefore represented a disproportionate hit to the county's employment landscape, with potential ripple effects extending beyond the directly affected workers to local suppliers, retail establishments, and municipal tax revenues.

Key Employers and Their Workforce Reductions

Startek dominated the layoff activity in Perry County during 2017, filing a single WARN notice that affected 207 workers—approximately 77 percent of the total workforce reduction in the county that year. Startek, a customer experience management and business process outsourcing company, had established operations in the county but faced competitive pressures and shifting market dynamics that ultimately led to the substantial workforce reduction. The concentration of such a large employment loss in a single employer underscores Perry County's vulnerability to firm-specific downturns and highlights the risks inherent in economic bases that depend on one or two major anchors.

The second major employer filing a WARN notice was Parker Hannifin, which notified 61 workers of layoffs through a single notice. Parker Hannifin, a diversified industrial manufacturer headquartered in Ohio with significant operations across Indiana, represents a different category of employer than Startek. As a global filtration, hydraulics, and industrial motion company, Parker Hannifin typically operates multiple facilities and serves cyclical markets. The 2017 layoff at its Perry County location suggests either facility consolidation, production realignment, or response to sector-specific demand weakness, reflecting the inherent volatility of manufacturing employment.

Together, these two employers accounted for all WARN-notified layoffs in the county during 2017, demonstrating how concentrated employment risk can be in smaller rural counties. A single adverse business decision at either firm could substantially impact county-level unemployment and labor force participation rates.

Industry Patterns: Manufacturing and Information Technology Collision

Perry County's 2017 layoffs reflected the county's sectoral composition, with notices distributed across two distinct but economically significant industries: Manufacturing and Information & Technology. The manufacturing sector, represented by Parker Hannifin, has historically provided stable, relatively well-compensated employment in Indiana counties. However, the global manufacturing slowdown that followed the 2016 economic transition affected even established firms with strong market positions.

The Information & Technology sector, represented by Startek, reflects the growing importance of service-based employment in rural economies. Companies offering customer contact center and business process outsourcing services have increasingly located in lower-cost regions like southwestern Indiana. However, this sector has also proven volatile, subject to technological disruption (automation of customer service), offshoring pressure, and rapid shifts in corporate procurement strategies. The magnitude of Startek's layoff—207 workers—suggests either a complete facility closure or severe operational consolidation, consistent with broader industry dynamics in the business services sector during the mid-2010s.

The diversification across these two sectors ironically provided little insulation for Perry County. Rather than one industry absorbing all risk, both major employment sectors experienced simultaneous contraction, preventing workers displaced from one sector from readily shifting to growth opportunities in another.

Geographic Distribution: Tell City Bears the Full Impact

All WARN notices filed in Perry County during 2017 originated in Tell City, the county's largest municipality and primary economic center. Both Startek and Parker Hannifin maintained operations in Tell City, concentrating the employment impact in a single city. This geographic concentration intensified the local economic shock, as Tell City's municipal tax base, retail sales tax revenue, and business services ecosystem all felt the simultaneous loss of payroll and consumer spending from 268 displaced workers.

Tell City, with a population in the range of 7,000 to 8,000 residents, faced particular vulnerability to such concentrated job losses. Unlike larger metropolitan areas with diverse employment bases and robust job transition services, smaller cities depend on maintaining stable anchor employers. The simultaneous workforce reductions at Startek and Parker Hannifin undermined consumer confidence, reduced commercial real estate demand, and likely triggered secondary employment losses in retail and local service sectors dependent on employee spending.

Historical Trends: The 2017 Snapshot

The available data captures only 2017 as a reference year, limiting trend analysis. However, the concentration of two major WARN notices in a single year suggests either an anomalous event or part of a broader adjustment period. Without multi-year comparative data from other Perry County WARN filings, drawing definitive conclusions about longer-term employment trajectories remains constrained. What can be stated is that 2017 represented a significant disruption year for the county, potentially following years of relative stability or preceding years of continued adjustment.

Local Economic Impact: Multiplier Effects and Long-Term Implications

The loss of 268 jobs in Perry County generated economic consequences extending well beyond the directly affected workers. When employed individuals lose income, they reduce discretionary spending, affecting retail establishments, restaurants, and service providers. Commercial landlords may face vacancies at facilities previously occupied by Startek and Parker Hannifin operations. Municipal revenue collections decline as payroll taxes and sales tax receipts fall. Moreover, workers with specialized skills or seniority may outmigrate to larger labor markets offering greater employment opportunities, reducing the county's human capital stock.

The workers directly affected faced labor market adjustment challenges. At the time, Indiana's insured unemployment rate stood well below the national average, yet Perry County workers displaced from Startek and Parker Hannifin likely faced limited local reemployment opportunities at comparable wage levels. Manufacturing workers from Parker Hannifin possessed transferable skills applicable to other industrial firms, though geographic mobility constraints often prevented immediate redeployment. Startek workers in customer service, technical support, and back-office functions would confront either extended job search periods or acceptance of positions at lower compensation levels.

Broader Context: State and National Labor Market Dynamics

When Perry County experienced these layoffs in 2017, Indiana's labor market was generally strengthening. The state's unemployment rate of 3.3 percent in early 2026 represents a substantially tighter labor market, though this 2026 reference point lies nearly a decade beyond the 2017 events analyzed here. The national unemployment rate at comparable recent dates (4.3 percent) suggests Indiana maintained above-average labor market health, potentially easing reemployment prospects for displaced Perry County workers, though local job availability remained constrained.

H-1B visa petition data for Indiana reveals substantial reliance on skilled foreign workers in technical fields, particularly at major employers like Cummins, Tata Consultancy Services, and Infosys. While no specific H-1B filing information is available for Startek or Parker Hannifin's Perry County operations, the broader pattern of Indiana employers utilizing H-1B workers for specialized roles underscores the skills gap facing some displaced workers seeking reemployment in technology-adjacent sectors.

Conclusion

Perry County's 2017 WARN activity reflected the vulnerabilities of rural manufacturing and service economies concentrated in few large employers. The 268 jobs affected, spanning manufacturing and information technology sectors, created a localized disruption that challenged Tell City's economic stability and displaced workers into a labor market offering limited local alternatives. Understanding these patterns remains essential for county economic development efforts seeking to diversify the employer base and build resilience against sector-specific or firm-specific shocks.