Maybe this is what Gov. LePage was talking about: Rumors became public last week that Unum is considering shedding over 200 local jobs by outsourcing its IT department.
The governor was crowing at one of his town hall meetings this spring about plans by an unnamed southern Maine company to cut 900 jobs. He said the reason for the layoffs was that Maine’s taxes and electricity rates are too high, but even though that doesn’t seem to be what’s behind the potential Unum move, it’s as close to the right story as the governor usually gets.
If true, that would be very bad news for the affected employees and their families, and potentially could have a ripple effect through the local economy. Fortunately, there is a very tight job market in southern Maine and skilled IT workers should be able to find other employment opportunities.
One good thing about this story is how it sheds light on the importance of what a group of Maine businesspeople are doing about the future right now – hosting the third annual Startup and Create Week in Portland.
The conference brings entrepreneurs and potential entrepreneurs to share ideas and practical know-how about starting and growing businesses. The people behind it are challenging conventional wisdom about what an economic center looks like and what can be accomplished outside a major metropolitan area.
Starting new businesses – even new industries – sounds like a pipe dream, but it’s something that is happening right now in Portland and could develop momentum if enough people get behind it.
What does that have to do with the Unum rumor? It’s an illustration where jobs come from.
Mature companies like Unum are always looking for ways to become more efficient, and often that means cutting jobs. Sending jobs overseas is an all-too-common event for an established American company that wants to juice up its productivity.
We often hear that most jobs come from small businesses, but that’s only partly true. The real generator of new jobs is new businesses, and they are also the ones most likely to grow quickly. So while it’s nice to have venerable companies that have provided good jobs in the community for a long time, it’s essential to have fertile ground for new businesses to get their start.
We applaud the people in who are turning ideas into businesses, and look forward to seeing what they will do to build a new economy for Maine.
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