Mass Layoffs Summary
Technical information: (202) 691-6392 USDL 08-1497 http://www.bls.gov/mls/ For release: 10:00 A.M. (EDT) Media contact: (202) 691-5902 Wednesday, October 22, 2008 MASS LAYOFFS IN SEPTEMBER 2008 In September, employers took 2,269 mass layoff actions, seasonally adjusted, as measured by new filings for unemployment insurance bene- fits during the month, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Each action involved at least 50 persons from a single employer; the number of workers involved totaled 235,681, on a seasonally adjusted basis. The number of mass layoff events this September increased by 497 from the prior month, while the number of associated initial claims rose by 61,726. Layoff events reached their highest level since September 2001, a month that experi- enced substantial layoff activity due to the September 11 attacks. Mass layoff initial claims reached their highest level since September 2005, which was a month with high layoff activity due to Hurricane Katrina. The effects of Hurricanes Gustav and Ike contributed to the higher September 2008 layoff activity. In September, 603 mass layoff events were reported in the manufacturing sector, seasonally adjusted, result- ing in 81,414 initial claims. Over the month, mass layoff events in manufacturing increased by 4 and initial claims increased by 9,170. (See table 1.) From January through September 2008, the total number of events (seasonally adjusted), at 14,811, and initial claims (seasonally adjusted), at 1,510,446, were the highest for the January-September period since 2003 and 2002, respectively. The national unemployment rate was 6.1 percent in September, sea- sonally adjusted, unchanged from the prior month and up from 4.7 per- cent a year earlier. In September, total nonfarm payroll employment decreased by 159,000 over the month and by 519,000 from a year earlier. Industry Distribution (Not Seasonally Adjusted) The number of mass layoff events in September was 1,292 on a not seasonally adjusted basis; the number of associated initial claims was 129,586. (See table 2.) Over the year, increases were recorded in both the number of layoff events (+575) and initial claims (+62,201). In 2008, three major sectors reported program highs in terms of mass layoff initial claims for the month of September--construction, pro- fessional and technical services, and finance and insurance (with data available back to 1995). The manufacturing sector accounted for 28 percent of all mass layoff events and 36 percent of initial claims filed in September 2008; a year earlier, manufacturing made up 34 percent of events and 44 percent of initial claims. In September, the number of manufacturing claimants was greatest in transportation equipment manufacturing (19,278), followed by machinery manufacturing (4,058). (See table 3.) Administrative and waste services accounted for 14 percent of mass layoff events and associ- ated initial claims during the month, primarily from temporary help serv- ices. The six-digit NAICS industry with the largest number of initial claims was temporary help services (9,491), followed by professional employer or- ganizations (4,520). Among the 10 industries with the highest levels of initial claims, 2 of the 10--professional employer organizations and air- craft manufacturing--reached program highs in 2008 for the month of September (with data available back to 1995). (See table A.) - 2 - Table A. Industries with the largest number of mass layoff initial claims in September 2008 ------------------------------------------------------------------------------- | | | Initial | September peak Industry | claims |--------------------- | | | | | Year |Initial claims ------------------------------------------------------------------------------- | | | Temporary help services .......................| 9,491 | 2001 | 12,752 Professional employer organizations ...........| 4,520 | 2008 | 4,520 Aircraft manufacturing ........................| (1) | 2008 | (1) Payroll services ..............................| 3,707 | 1999 | 4,737 Automobile manufacturing ......................| 3,464 | 2004 | (1) Light truck and utility vehicle manufacturing .| 2,877 | 2000 | 3,688 Motion picture and video production ...........| 2,757 | 1997 | 11,176 Elementary and secondary schools ..............| 2,259 | 2005 | 15,815 Limited-service restaurants ...................| 2,042 | 2005 | 6,097 Ship building and repairing ...................| 1,897 | 2005 | 8,811 | | | ------------------------------------------------------------------------------- 1 Data do not meet BLS or state agency disclosure standards. Geographic Distribution (Not Seasonally Adjusted) Of the 4 census regions, the West had the highest number of initial claims in September due to mass layoffs (47,522), followed by the South (43,772). (See table 5.) Initial claimants in mass layoffs increased over the year in all 4 regions with the South (+27,859) and the West (+21,983) experiencing the largest increases, followed by the Midwest (+9,373) and the Northeast (+2,986). Of the 9 divisions, the Pacific had the highest number of initial claims in September due to mass layoffs (43,847), followed by the West South Central (26,693). (See table 5.) Eight of the 9 divisions ex- perienced over-the-year increases in initial claims, led by the West South Central (+22,101) and the Pacific (+20,474). California recorded the highest number of initial claims filed due to mass layoff events in September with 34,584. The next highest states reporting mass layoff initial claims were Louisiana (14,929) and Texas (10,616). (See table 6.) Six states reached program highs in 2008 for the month of September--Indiana, Ohio, Texas, Washington, Wisconsin, and Wyoming. Thirty-five states registered over-the-year increases in initial claims associated with mass layoffs, led by Louisiana (+14,366), California (+13,440), and Texas (+8,010). The effects of Hurricane Gustav in Louisiana and of Hurricane Ike in Texas contributed to the higher September 2008 layoff activity in those two states. ______________________________ The report on Extended Mass Layoffs in the Third Quarter 2008 is scheduled to be released on Thursday, November 13.
- Mass Layoffs Technical Note
- Table 1. Mass layoff events and initial claimants for unemployment insurance, October 2004 to September 2008, seasonally adjusted
- Table 2. Mass layoff events and initial claimants for unemployment insurance, October 2004 to September 2008, not seasonally adjusted
- Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance
- Table 4. Mass layoff events and initial claimants for unemployment insurance, July 2006 to September 2008, not seasonally adjusted
- Table 5. Mass layoff events and initial claimants for unemployment insurance by census region and division, not seasonally adjusted
- Table 6. State distribution: Mass layoff events and initial claimants for unemployment insurance, not seasonally adjusted
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Last Modified Date: October 22, 2008