Postal Changes Could Mean Big Impact for Consumers

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KANSAS CITY, Mo. -- Your holiday cards will likely make it to their recipients on time this year, but because of some proposed changes to the postal system that may not be the case next year.

FOX 4's Gia Vang is Working for You with the report on how the changes could impact you.

The Postal Service, which has been losing money for five years, said Monday that it is shuttering more than 200 mail processing centers, adding at least a day's wait for many first-class deliveries.
First-class mail is supposed to arrive at U.S. homes and businesses in one to three days; about 42 percent of it arrives in one day. The cutbacks will back up deliveries to two to three days; periodicals could take up to nine days.

For many companies, the changes will have no effect. Some have already stopped relying on the Postal Service, moving online for billing or to overnight companies FedEx and United Parcel Service for crucial deliveries. First-class mail volume is 78 billion per year, down from a peak of 104 billion in 2001. It is projected to drop by about half by 2020.

The 28,000 job cuts announced by the Postal Service likely won't make a big difference to the economy or job market, economists say. The service has cut more than 30,000 jobs in the past year, the government's Friday employment report showed. Postal Service employment peaked at 909,000 in 1999 and has declined steadily since, falling to 612,400 last month.

(The Associated Press contributed to this report.)

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