Technical information: (202) 691-6392 USDL 09-0980
http://www.bls.gov/mls/
For release: 10:00 A.M. (EDT)
Media contact: (202) 691-5902 Friday, August 21, 2009
MASS LAYOFFS IN JULY 2009
Employers took 2,157 mass layoff actions in July that resulted in
the separation of 206,791 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 in July decreased by 606 from the prior
month, and the number of associated initial claims decreased by 72,440.
Over the year, the number of mass layoff events increased by 622, and
associated initial claims increased by 54,292. In July, 621 mass layoff
events were reported in the manufacturing sector, seasonally adjusted,
resulting in 72,266 initial claims. Over the year, the number of manu-
facturing events increased by 166, and associated initial claims in-
creased by 14,618. (See table 1.)
During the 20 months from December 2007 through July 2009, the total
number of mass layoff events (seasonally adjusted) was 41,979, and the
number of initial claims filed (seasonally adjusted) in those events was
4,297,329. (December 2007 was the start of a recession as designated by
the National Bureau of Economic Research.)
The national unemployment rate was 9.4 percent in July 2009, seasonally
adjusted, little changed from 9.5 percent the prior month but up from 5.8
percent a year earlier. In July, total nonfarm payroll employment de-
creased by 247,000 over the month and by 5,740,000 from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in July was 3,054 on a not seasonally
adjusted basis; the number of associated initial claims was 336,654. (See
table 2.) Over the year, increases were recorded in both the number of
mass layoff events (+1,163) and initial claims (+136,272). This year,
average weekly events reached its highest July level in program history;
data are available back to 1995. (Average weekly analysis mitigates the
effect of differing lengths of months. See the Technical Note.) Nine of
the 19 major industry sectors reported program highs in terms of average
weekly initial claimants for the month of July--construction; wholesale
trade; retail trade; finance and insurance; professional and technical
services; management of companies and enterprises; administrative and
waste services; health care and social assistance; and accommodation and
food services. Government also reported a program high in terms of aver-
age weekly initial claimants for the month of July.
The manufacturing sector accounted for 37 percent of all mass layoff
events and 46 percent of initial claims filed in July 2009; a year ear-
lier, manufacturing made up 40 percent of events and 54 percent of initial
claims. This July, the number of manufacturing claimants was greatest in
transportation equipment (47,322) and machinery (29,528). (See table 3.)
The administrative and waste services sector accounted for 11 percent of
mass layoff events and associated initial claims during the month.
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Table A. Industries with the largest number of mass layoff initial claims in July 2009,
not seasonally adjusted
July peak
Industry
Initial claims Year Initial claims
Elementary and secondary schools .............. 20,769 2009 20,769
Temporary help services (1) ................... 20,377 1998 24,601
Construction machinery manufacturing .......... 13,914 2009 13,914
Professional employer organizations (1) ....... 8,240 2009 8,240
Motion picture and video production ........... 7,950 1998 12,310
Light truck and utility vehicle manufacturing . 7,713 1997 14,618
All other plastics product manufacturing ...... 6,015 2004 8,864
All other motor vehicle parts manufacturing ... 5,751 2004 9,691
School and employee bus transportation ........ 5,553 1997 8,081
Motor vehicle metal stamping .................. 4,504 2005 8,198
1 See the Technical Note for more information on these industries.
Of the 10 detailed industries with the largest number of mass layoff
initial claims, 3 reached a series high for July: construction machinery
manufacturing; professional employer organizations; and elementary and
secondary schools. The industry with the largest number of initial claims
was elementary and secondary schools (20,769), which includes both public
and private entities. (See table A.)
Geographic Distribution (Not Seasonally Adjusted)
Among the four census regions, the Midwest registered the highest number
of initial claims in July due to mass layoffs (117,188), followed by the
West (102,292) and the South (71,648). (See table 5.) Average weekly
initial claims associated with mass layoffs increased over the year in all
four regions, with the West experiencing the largest increase. In 2009, the
South and the West reported their highest July levels of average weekly ini-
tial claims in program history.
Of the nine geographic divisions, the East North Central (94,516) had the
highest number of initial claims due to mass layoffs in July, followed by
the Pacific (91,051) and the Middle Atlantic (38,332). (See table 5.) Eight
of the 9 divisions experienced over-the-year increases in average weekly ini-
tial claims, led by the Pacific. This year, the Mountain and the Pacific divi-
sions reached program highs for July in terms of average weekly initial claims.
California recorded the highest number of initial claims filed due to mass
layoff events in July with 82,085. The states with the next highest number
of mass layoff initial claims were Illinois (25,119), Michigan (23,929), and
Ohio (19,704). (See table 6.) Over-the-year increases in average weekly ini-
tial claims were highest in California, Illinois, and Pennsylvania. In 2009,
seven states reached program highs in average weekly initial claims for the
month of July--Arizona, Florida, Hawaii, Illinois, Nevada, New Jersey, and Utah.
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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 classifica-
tion 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 Mass Layoffs in August 2009 is scheduled to be released on
Wednesday,September 23.
