Technical information: (202) 691-6392 USDL 09-0842
http://www.bls.gov/mls/
For release: 10:00 A.M. (EDT)
Media contact: (202) 691-5902 Thursday, July 23, 2009
MASS LAYOFFS IN JUNE 2009
Employers took 2,763 mass layoff actions in June that resulted in
the separation of 279,231 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
today. Each action involved at least 50 persons from a single employer.
The number of mass layoff events decreased by 170 and associated initial
claims decreased by 33,649. Both measures had been at record high levels
in May. Over the year, the number of mass layoff events increased by
1,046, and associated initial claims increased by 104,483. In June,
1,235 mass layoff events were reported in the manufacturing sector, sea-
sonally adjusted, resulting in 159,310 initial claims. Over the year,
the number of manufacturing events increased by 680, and associated
initial claims increased by 79,566. (See table 1.)
During the 19 months from December 2007 through June 2009, the
total number of mass layoff events (seasonally adjusted) was 39,822,
and the number of initial claims filed (seasonally adjusted) in those
events was 4,090,538. (December 2007 was designated as the start of
a recession by the National Bureau of Economic Research.)
The national unemployment rate was 9.5 percent in June 2009, season-
ally adjusted, up slightly from 9.4 percent the prior month and up from
5.6 percent a year earlier. In June, total nonfarm payroll employment
decreased by 467,000 over the month and by 5,664,000 from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in June was 2,519 on a not season-
ally adjusted basis; the number of associated initial claims was
256,357. (See table 2.) Over the year, increases were recorded in
both the number of mass layoff events (+897) and initial claims
(+89,615). This year, both average weekly events and initial
claimants reached their highest June levels in program history; data
are available back to 1995. (Average weekly analysis mitigates the
effect of differing lengths of months. See the Technical Note.) Ten
of the 19 major industry sectors reported program highs in terms of
average weekly initial claimants for the month of June--construction;
wholesale trade; retail trade; transportation and warehousing; real
estate and rental and leasing; management of companies and enterprises;
administrative and waste services; health care and social assistance;
arts, entertainment, and recreation; and accommodation and food services.
Government also reported a program high in terms of average weekly
initial claimants for the month of June.
The manufacturing sector accounted for 27 percent of all mass lay-
off events and 33 percent of initial claims filed in June 2009; a
year earlier, manufacturing made up 19 percent of events and 25 per-
cent of initial claims. This June, the number of manufacturing
claimants was greatest in transportation equipment (24,865) and
machinery (14,644). (See table 3.) The transportation and warehous-
ing sector accounted for 7 percent of mass layoff events and 9 percent
of the associated initial claims during the month.
Of the 10 detailed industries with the largest number of mass lay-
off initial claims, 4 reached a series high for June: construction
machinery manufacturing; aircraft manufacturing; professional employer
organizations; and elementary and secondary schools. The industry
with the largest number of initial claims was elementary and secondary
schools (28,751), which includes both publicly- and privately-owned
entities. (See table A.)
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Table A. Industries with the largest number of mass layoff initial claims in June 2009,
not seasonally adjusted
June peak
Industry
Initial claims Year Initial claims
Elementary and secondary schools .............. 28,751 2009 28,751
School and employee bus transportation ........ 18,930 2007 21,611
Food service contractors ...................... 12,113 2007 14,527
Temporary help services (1) ................... 8,567 2000 13,815
Child day care services ....................... 7,911 2007 9,115
Construction machinery manufacturing .......... 7,454 2009 7,454
Light truck and utility vehicle manufacturing . 7,034 1998 7,608
Professional employer organizations (1) ....... 5,303 2009 5,303
Motion picture and video production ........... 3,578 2000 9,435
Aircraft manufacturing ........................ 3,365 2009 3,365
1 See the Technical Note for more information on these industries.
Geographic Distribution (Not Seasonally Adjusted)
Among the 4 census regions, the Midwest registered the highest
number of initial claims in June due to mass layoffs (76,301),
followed by the West (71,501) and the South (61,962). (See table 5.)
Initial claims associated with mass layoffs increased over the year in
all 4 regions, with the Midwest (+36,910) and the South (+23,509)
experiencing the largest increases. In 2009, all regions except the
Midwest reported their highest June levels of average weekly initial
claims in program history.
Of the 9 geographic divisions, the Pacific (64,317) had the highest
number of initial claims due to mass layoffs in June, followed by the
East North Central (59,347) and the Middle Atlantic (40,077). (See
table 5.) All divisions experienced over-the-year increases in
initial claims, led by the East North Central (+30,798), the Pacific
(+13,043), and the South Atlantic (+13,016). This year, 4 of the 9
divisions--Middle Atlantic, South Atlantic, East South Central, and
Pacific--reached program highs for June in terms of average weekly
initial claims.
California recorded the highest number of initial claims filed due
to mass layoff events in June with 56,138. The states with the next
highest number of mass layoff initial claims were Illinois (20,576),
Pennsylvania (18,363), and Florida (15,785). (See table 6.) Forty-
three states registered over-the-year increases in initial claims
associated with mass layoffs, led by Illinois (+15,809), California
(+11,384), Michigan (+5,895), and Alabama (+5,746). In 2009, 16
states reached program highs in average weekly initial claims for the
month of June--Alabama, California, Florida, Hawaii, Illinois, Iowa,
Kansas, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania,
Utah, Vermont, West Virginia, 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
release 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 establishment 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 Second Quarter of 2009
is scheduled to be released on Wednesday, August 12. The report on
Mass Layoffs in July 2009 is scheduled to be released on Friday,
August 21.
