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Puerto Rico to lay off 16,000 workers

Associated Press / September 26, 2009

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SAN JUAN - Puerto Rico’s government announced yesterday that it will lay off more than 16,000 public workers in the US Caribbean territory, adding to an unemployment rate higher than that of any US state.

The government hopes the layoffs will help close a $3.2 billion deficit.

The island is struggling through its third year of recession and a 15 percent unemployment rate. Union leaders announced an island-wide strike in protest on Oct. 15.

The layoffs of 16,970 employees are needed to prevent the government from shutting down and sinking the island’s credit, said Carlos Garcia, president of the Government Development Bank of Puerto Rico.

“Today is an extremely difficult day for all Puerto Ricans,’’ he said.

Most workers will be laid off Nov. 6 in a move expected to save some $386 million, he said.

Rey Rosario, a 34-year-old teacher, argued the layoffs will only worsen the economic crisis.

“This will have a domino effect on the economy because with less income there is less consumption,’’ he said. “This is an insensitive act, and layoffs should always be the last alternative.’’