The Mill itself isn't what everyone is after on the show... they just want to sell the land it is built on so they can develop it through Ghostwood and make many millions of dollars.  In that sense, the value of the land is worth more than the mill.

Catherine wants to burn the mill and frame Josie for it so she can get her hands back on the land title that was willed to Josie by Andrew.  Josie wants to burn the mill because she is working for Ekhardt and he wants to destroy everything about the Packards as a final revenge against Andrew.  Plus, as a side bonus, there's insurance $$ to be gained by torching the mill.

Any other concerns about employees and the impact upon the town are secondary to the characters involved in the plot.  And, indeed, it is never really discussed in the show how the town's economy recovers (or doesnt).

That's an interesting answer, and I've never thought of that before. It's interesting that Josie and Catherine have totally different reasons for wanting to do the same thing, ie, burn down the mill.

The fact that lots of people have lost their jobs does get mentioned briefly by Dr Hayward at the dinner party, and Leland says he can't comment, but it is never mentioned after that. Actually, now I come to think of it, Pete is probably quite rich, being married to Catherine, and spends the rest of the series getting the shopping or going fishing.

The other major employer seems to be the Hotel. Perhaps there are a few jobs available there...?

Is it just me or was the entire Packard Mill plot extremely complicated?

I have a hard time understanding the whole plot and sublots with all the backstabbings to this day

"Harry, I'm going to let you in on a little secret. Every day, once a day, give yourself a present. Don't plan it, don't wait for it, just let it happen. Could be a new shirt at the men's store, a catnap in your office chair, or two cups of good, hot, black coffee. Like this."  -Dale Cooper

This is a sentence and you are reading it now.

Maybe Bob made them do it. Maybe all the Twin Peak people are weird because of Bob's psychic influence.

MWAHAHAHAHA!