Whirlpool to Slash 1,100 Jobs

BENTON HARBOR, Mich. (TheStreet) -- Ebullient feelings percolated a bit on Thursday after the Labor Department said unemployment insurance claims for first-timers dropped last week.

But before you start believing that lagging unemployment figures turned a corner, there's a group of soon-to-be jobless refrigerator-makers in Indiana that may offer a different take.

On Friday, Whirlpool(WHR Quote) announced plans to slash 1,100 jobs at a refrigerator factory in Evansville. In a cost-cutting move, production from the facility will end up in Mexico and another still-to-be determined locale.

Yesterday's nationwide weekly estimates said initial unemployment claims fell by 10,000 to a seasonally adjusted 570,000. Similarly, in recent months, Indiana has watched its claims for the newly jobless, as well as those continuing on insurance rolls, steadily fall.

In a state-by-state look last week, federal officials said Indiana's unemployment rate stood at 10.6% in July, a far cry from the 6% rate posted at the same time last year. While the national unemployment rate dropped slightly to 9.4% in July, most expect it to top 10% by the end of the year.

Whirlpool -- along with other appliance makers and retailers like General Electric(GE Quote), Home Depot(HD Quote), and Sears(SHLD Quote) -- have been hard hit by dwindling sales for big-ticket, bread-and-butter household items like washers, dryers, refrigerators and dishwashers.

However, more help for ailing appliance manufacturers and retailers is on the way in the fall. A $300 million "Cash for Appliances" federal program is set to roll-out, offering rebates to buyers who purchase more energy efficient appliances.