OTTUMWA — Most of the laid off John Deere Ottumwa Works employees will have their jobs back starting next month.

The company announced Wednesday that 452 John Deere Ottumwa Works manufacturing employees will be recalled starting Nov. 30, with all of those employees expected to be back to work before the company’s annual holiday shutdown on Dec. 23. Seventy-eight employees will remain on layoff.

“It’s a great announcement and we’re just looking forward to having those employees back at work. We see this as a sign of recovery in our economy,” said Ottumwa City Administrator Joe Helfenberger.

“It’s very good news for the area as a whole, not just Ottumwa,” said Kerry Koonce, spokeswoman for Iowa Workforce Development. “It’s a positive sign for manufacturing, but it’s still a long ways from saying that we’re making a full recovery.”

Iowa has an economy that is seasonal, largely based on the agriculture industry, Koonce said. The state sees higher unemployment in November, December, January and February.

“I don’t think it’s safe to say we’re out of this,” Koonce said. “They say that in Iowa, we have to add 2,000 jobs each month for the economy to be considered growing.”

Since people will be called back to work and will start seeing steady paychecks, Helfenberger said Deere’s announcement is good for businesses and the community of Ottumwa.

“It has a huge impact on the local economy, it’s a very positive thing,” Helfenberger said. “I think the recovery from the worst recession since the Great Depression is happening slowly.”

In June, 494 production employees were laid off until later this year to ensure that factory production aligns with market demand. An additional 195 employees were told they face periodic layoffs, one week at a time, for up to 10 weeks. In June, officials said they hoped to bring employees back this fall.

Employees will begin production of new 2010 models. John Deere Ottumwa Works employs about 260 salaried employees and 720 wage employees, including those who remain on layoff, according to a Deere news release.

The facility manufactures balers, mower conditioners, windrowers and pull-type forage harvesters used by hay and livestock producers.

Pat Shaver can be reached at (641) 683-5360 or by e-mail at p.shaver@ottumwacourier.com