Technical information: (202) 691-6392 USDL 09-0416
http://www.bls.gov/mls/
For release: 10:00 A.M. (EDT)
Media contact: (202) 691-5902 Thursday, April 23, 2009
MASS LAYOFFS IN MARCH 2009
Employers took 2,933 mass layoff actions in March that resulted in
the separation of 299,388 workers, seasonally adjusted, as measured by
new filings for unemployment insurance benefits during the month, the
Bureau of Labor Statistics of the U.S. Department of Labor reported to-
day. Each action involved at least 50 persons from a single employer.
The number of mass layoff events in March increased by 164 from the
prior month, while the number of associated initial claims increased by
3,911. Over the year, the number of mass layoff events increased by
1,348, and the number of associated initial claims increased by 137,891.
In March, the manufacturing sector experienced 1,259 mass layoff events,
seasonally adjusted, resulting in 155,909 initial claims. Over the month,
mass layoff events in manufacturing increased by 24, and initial claims
increased by 3,291. (See table 1.) Layoff events and initial claims
rose to their highest levels on record, with data available back to 1995;
events in the manufacturing sector also reached its highest level.
During the 16 months from December 2007 through March 2009, the
total number of mass layoff events (seasonally adjusted) was 31,414,
and the number of initial claims (seasonally adjusted) was 3,227,201.
(December 2007 was the start of a recession as designated by the
National Bureau of Economic Research.)
The national unemployment rate was 8.5 percent in March 2009, sea-
sonally adjusted, up from 8.1 percent the prior month and from 5.1 per-
cent a year earlier. In March, total nonfarm payroll employment de-
creased by 663,000 over the month and by 4,795,000 from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in March was 2,191 on a not sea-
sonally adjusted basis; the number of associated initial claims was
228,387. (See table 2.) Over the year, increases were recorded in
both the number of mass layoff events (+1,102) and initial claims
(+113,846). This year, both average weekly events and initial claim-
ants reached their highest March levels in program history; data are
available back to 1996. (Average weekly analysis mitigates the effect
of differing lengths of months. See the Technical Note.) Thirteen
of the 19 major industry sectors reported program highs in terms of
average weekly initial claimants for the month of March--mining; con-
struction; manufacturing; wholesale trade; retail trade; information;
finance and insurance; real estate and rental and leasing; professional
and technical services; management of companies and enterprises; admini-
strative and waste services; arts, entertainment, and recreation; and
accommodation and food services.
The manufacturing sector accounted for 43 percent of all mass layoff
events and 50 percent of initial claims filed in March 2009; a year
earlier, manufacturing made up 31 percent of events and 38 percent of
initial claims. This March, the number of manufacturing claimants was
greatest in transportation equipment (26,012) and machinery (18,081).
(See table 3.) The retail trade industry accounted for 8 percent of mass
layoff events and 9 percent of associated initial claims during the month.
Of the 10 detailed industries with the largest number of mass layoff
initial claims, 6 reached their March peak. The six-digit NAICS industry
with the largest number of initial claims was temporary help services
(9,964). (See table A.)
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Table A. Industries with the largest number of mass layoff initial claims in March 2009
March peak
Industry
Initial claims Year Initial claims
Temporary help services (1) ................... 9,964 2002 14,338
Construction machinery manufacturing .......... 7,933 2009 7,933
Food service contractors ...................... 6,475 2007 7,636
Radio, TV, and other electronics stores ....... 5,867 2009 5,867
Motion picture and video production ........... 4,919 2005 7,192
Professional employer organizations (1) ....... 4,892 2009 4,892
Motor vehicle power train components mfg. ..... 4,843 2009 4,843
Light truck and utility vehicle manufacturing . 4,446 2009 4,446
School and employee bus transportation ........ 4,070 2008 8,073
Semiconductors and related device mfg. ........ 3,476 2009 3,476
1 See the Technical Note for more information on these industries.
Geographic Distribution (Not Seasonally Adjusted)
Of the 4 census regions, the Midwest registered the highest number
of initial claims in March due to mass layoffs (81,957), followed by
the South (61,432) and the West (55,505). (See table 5.) Initial
claims associated with mass layoffs increased over the year in all 4
regions, with the Midwest (+47,072) and the South (+33,335) experiencing
the largest increases. In 2009, all four regions reported their highest
March levels of average weekly initial claims in program history.
Of the 9 geographic divisions, the East North Central (64,595) had
the highest number of initial claims due to mass layoffs in March, fol-
lowed by the Pacific (44,514) and the South Atlantic (27,819). (See
table 5.) All divisions experienced over-the-year increases in initial
claims, led by the East North Central (+36,748) and the Pacific (+18,158).
This year, all divisions except the Pacific reached March program highs
in terms of initial claims.
California recorded the highest number of initial claims filed due
to mass layoff events in March with 38,130. The states with the next
highest number of mass layoff initial claims were Illinois (18,096),
Texas (14,284), and Ohio (13,067). (See table 6.) Forty-three states
registered over-the-year increases in initial claims associated with
mass layoffs, led by California (+16,318), Illinois (+11,402), and
Texas (+9,179). In 2009, 26 states reached program highs in average
weekly initial claims for the month of March--Alabama, Arizona, Colorado,
Connecticut, Florida, Georgia, Idaho, Illinois, Iowa, Kentucky, Maine,
Massachusetts, Minnesota, Montana, Nevada, New Hampshire, New Mexico,
North Carolina, North Dakota, Ohio, Rhode Island, South Carolina, South
Dakota, Texas, Utah, and Wisconsin.
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Note
The monthly data series in this release cover mass layoffs of 50 or
more workers beginning in a given month, regardless of the duration of
the layoffs. For private nonfarm establishments, information on the
length of the layoff is obtained later and issued in a quarterly re-
lease that reports on mass layoffs lasting more than 30 days (referred
to as "extended mass layoffs"). The quarterly release provides more
information on the industry classification and location of the establish-
ment and on the demographics of the laid-off workers. Because monthly
figures include short-term layoffs of 30 days or less, the sum of the
figures for the 3 months in a quarter will be higher than the quarterly
figure for mass layoffs of more than 30 days. (See table 4.) See the
Technical Note for more detailed definitions.
______________________________
The report on Extended Mass Layoffs in the First Quarter of 2009
is scheduled to be released on Tuesday, May 12. The report on Mass
Layoffs in April 2009 is scheduled to be released on Friday, May 22.
