NEW BRAUNFELS,Texas -- Not too long ago, business was booming at Indulge Nail Spa in New Braunfels. That ended when the Scooter Store, located across the street from Indulge, furloughed about 1200 employees early last month.

We don't see our regulars that we used to. Usually during lunchtime, it would be really busy, but right now, it's slowed down a lot, says Kelly Bailey.

'It's just frustrating, Bailey says.

And it's not just the nail salon -- the whole city of New Braunfels is feeling the impact of the Scooter Store's layoffs. New Braunfels' unemployment rate jumped from 5.5 percent in February to 7percent in March. Comal County saw a similar increase.

Obviously, The Scooter Store has had a bad impact on our joblessness rate. Otherwise, everything is going good, says New Braunfels Mayor Gale Pospisil.

Mayor Pospisil says the spike in the city's unemployment rate is only a bump in the road.

'It may not go down as far as it did, but I would certainly anticipate it will drop back down from that 7percent, he says.

Bailey fears if the jobless rate doesn't drop, someone at the nail salon could be out of a job.

If it doesn't pick up then I'm not sure what's going to happen, says Bailey.

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