‘What can we do?’: Nearly 300 workers blindsided after Illinois plant abruptly closes — after serving as a local linchpin for 60 years. What it says about the current state of US unemployment

What went wrong?

Employees were called to a meeting in nearby Kankakee where the Johnsonville CEO delivered the shocking news: the Momence facility was closing, effective immediately.

Among those affected was Lupe Hernandez, a 25-year veteran, who told ABC7 News, “It’s like they didn’t even care about us, you know? [The] same day?"

Momence mayor Charles Steele said he only got a 15-minute heads-up from the company. Other local leaders were blindsided too.

“It’a just very devastating. Very heartbroken… What can we do?” asked Hernandez.

"When I was out there a couple weeks ago, the plant manager talked about over $1 million worth of equipment that had recently been installed," recalled Tim Nugent, president and CEO of the Economic Alliance of Kankakee County.

"If they're investing in infrastructure, it means that they made plans to stay around for a while," which made the closure feel abrupt and contradictory.

Johnsonville stated, "We made the difficult decision after evaluating how best to optimize our operations network to address current and future growth. This decision was based on optimizing our operations across our other newer facilities."

The company also pledged to continue providing pay and benefits to impacted workers for 60 days. That’s some help, but Hernandez planned to work for three more years to pay off her house.

The newer facilities include two in Wisconsin and one in Kansas. Johnsonville expects to create about 100 new jobs by the end of its third quarter between the two Wisconsin locations. It plans to demolish the Momence facility by the end of the year and transfer its assets to other facilities.

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Unemployment in America — and getting through tough times

As of May, the U.S. unemployment rate stood at 4.2%, similar to what the country's seen over the past year.

While jobs continue to be added — 139,000 positions in May and 177,000 in April — weekly unemployment benefits claims are ticking up. In the week ending May 31, 247,000 initial applications were filed. This is the highest since October.

Unemployment or reduced income significantly increases the risk of falling into consumer debt traps. Without a consistent paycheck, people often rely on credit cards or loans to meet basic expenses. U.S. credit card debt topped $1.18 trillion in Q1 2025.

And for those nearing retirement age, losing a long-held job can spark financial crises involving mortgage payments, dwindling savings and health care expenses. Hernandez is an example of one such Johnsonville worker, as she planned to work three more years to pay off her home.

What affected workers can do

File for unemployment benefits With 60 days of paid benefits, these workers should immediately file claims to reduce income gaps.

Tap local resources State-sponsored career centers and community colleges provide resume help, certifications and class enrollment at little or no cost.

Pivot quickly to part-time or gig work Delivery driving, warehouse roles, administrative jobs or trades may serve as interim income sources. Many workers can also take seasonal jobs while searching for a longer-term replacement role.

Reassess retirement and debt strategy For those close to retirement, delaying retirement and tightening budgets may be essential until new employment or savings bridges the gap.

Rebuild financial resilience Workers can use the crisis to start an emergency fund — a small amount, such as $25 per week, can eventually build a buffer.

Retrain Exploring job training or apprenticeships aligned with local demand, such as healthcare or logistics, can offer a fresh start.