Moody’s Investors Services says the fallout from the 737 MAX layoffs in Wichita threatens to zap the region of vital talent in an already-tight local labor market and have other, broader impacts on the local economy.
In a research note provided to the WBJ, the firm listed the 737 MAX layoffs as “credit negative” for both Wichita and Sedgwick County, adding that the near-term future of the MAX will have an important impact on the longer-term prospects for the area.
“Most Wichita area local governments would be able to weather a short-term economic slowdown stemming from reduced aerospace employment,” Moody’s says. “But if lower staffing at Spirit and its downstream suppliers continues for an extended period, and without substantial hiring by other aerospace companies in the region, out migration will likely occur as workers seek employment in the sector elsewhere.”
(Read more: Wichita Business Journal)