Illinois suddenly loses another factory as unemployment crisis worsens

Even without considering everything that has unfolded in Chicago over the last month, Illinois has struggled through 2025.

Factories across the state have continued to close as the trade war’s effects hit American manufacturers in the Midwest hard.

And now, Illinois faces yet another painful loss.

Johnsonville recently shut down its processing plant in Momence, Illinois, eliminating more than 250 jobs.

The Momence facility managed sausage production and other meat-processing work, supplying both regional and national markets. Meatpacking companies overall have faced mounting pressure as Americans shift their eating habits and as labor shortages and soaring feed costs push already-thin margins even lower.

Combine those challenges with the trade war’s fallout—retaliatory tariffs and outright boycotts cutting into international demand, while domestic demand cools as Americans cut spending ahead of a possible recession—and it becomes clear why so many companies are scaling back production to avoid oversupply and cutting jobs as well.

Unfortunately, this trend risks becoming a vicious cycle of contraction. As consumer demand declines, employers reduce production and shrink payrolls. Those cuts spread anxiety through the workforce, leading families to delay purchases and curb spending. That caution reduces company revenues, resulting in even more cutbacks. The chain reaction continues until the economy feels stuck—and more hardworking Americans end up carrying the burden.

Illinois has seen several factory closures and large-scale layoffs in manufacturing throughout 2025, but this shutdown stands out because of its scale and suddenness in a community long connected to the plant. Analysts warn that without relief from rising costs, improved automation investment, and greater supply-chain stability, the region could face even more closures.

It’s a tough moment, especially heading into the holidays. Hopefully, 2026 brings better news for all affected workers and for Illinois’ broader economy.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.

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