Technical information: (202) 691-6392 USDL 09-0094
http://www.bls.gov/mls/
For release: 10:00 A.M. (EST)
Media contact: (202) 691-5902 Wednesday, January 28, 2009
MASS LAYOFFS IN DECEMBER 2008 AND ANNUAL TOTALS FOR 2008
In December, employers took 2,275 mass layoff actions, 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 workers involved totaled
226,117 on a seasonally adjusted basis. The number of mass layoff
events in December decreased by 58 from the prior month, while the
number of associated initial claims increased slightly by 478. Over
the year, the number of mass layoff events increased by 806, and the
number of associated initial claims increased by 80,201. In December,
871 mass layoff events were reported in the manufacturing sector, sea-
sonally adjusted, resulting in 105,402 initial claims. Over the month,
mass layoff events in manufacturing increased by 3, and initial claims
increased by 4,759, the fifth consecutive over-the-month increase for
both measures. (See table 1.)
_______________________________________________________________
| |
| Revision of Seasonally Adjusted Mass Layoff Data |
| |
| Seasonally adjusted mass layoff data have been revised |
|using updated seasonal adjustment factors that incorporate |
|2008 data. Seasonally adjusted estimates back to January |
|2004 were subject to revision. Revised seasonally adjusted |
|data from January 2004 forward are shown in table 1. The |
|originally published and revised figures for January 2004- |
|November 2008 are available at http://www.bls.gov/mls/home.htm,|
|along with additional information about the revisions. |
|_______________________________________________________________|
From the start of the recession in December 2007 through December
2008, the total number of mass layoff events (seasonally adjusted) was
23,485, and the number of initial claims (seasonally adjusted) was
2,394,434.
For all of 2008, on a not seasonally adjusted basis, the total num-
bers of mass layoff events at 21,137, and initial claims at 2,130,220,
reached their highest annual levels since 2001 and 2002, respectively.
Among the twenty-one major industry sectors, six registered series highs
for both mass layoff events and initial claims for all of 2008--construc-
tion; transportation and warehousing; finance and insurance; real estate
and rental and leasing; management of companies and enterprises; and
accommodation and food services. Eleven states recorded series highs in
mass layoff initial claims activity (with data available back to 1996).
The national unemployment rate was 7.2 percent in December, seasonally
adjusted, up from 6.8 percent the prior month and from 4.9 percent a year
earlier. In December, total nonfarm payroll employment decreased by
524,000 over the month and by 2,589,000 from a year earlier.
- 2 -
Table A. Industries with the largest number of mass layoff initial claims
in December 2008
December peak
Industry
Initial Initial
claims Year claims
Temporary help services ....................... 15,246 2005 16,656
School and employee bus transportation ........ 13,999 2006 14,747
Highway, street, and bridge construction ...... 13,035 2005 20,088
Food service contractors ...................... 12,673 2006 13,903
Light truck and utility vehicle manufacturing . 11,835 2008 11,835
Motor vehicle metal stamping .................. 7,523 2008 7,523
All other motor vehicle parts manufacturing ... 6,757 2008 6,757
Automobile manufacturing ...................... 6,208 2005 9,021
Professional employer organizations ........... 6,101 2008 6,101
All other plastics product manufacturing ...... 5,789 2008 5,789
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in December was 3,377 on a not seasonally
adjusted basis; the number of associated initial claims was 351,305. (See
table 2.) Both the number of events and initial claimants reached their high-
est December levels in program history (with data available back to 1995).
Twelve major industry sectors reported program highs in terms of initial claim-
ants for the month of December--mining; construction; manufacturing; wholesale
trade; transportation and warehousing; finance and insurance; real estate and
rental and leasing; management of companies and enterprises; administrative and
waste services; educational services; accommodation and food services; and other
services, except public administration.
The manufacturing sector accounted for 41 percent of all mass layoff events
and 49 percent of initial claims filed in December 2008; a year earlier, manu-
facturing made up 32 percent of events and 41 percent of initial claims. This
December, the number of manufacturing claimants was greatest in transportation
equipment (64,336), followed by plastics and rubber products (14,215) and fab-
ricated metal products (12,576). (See table 3.) The construction industry
accounted for 16 percent of mass layoff events and 12 percent of associated
initial claims during the month.
The six-digit NAICS industry with the largest number of initial claims was
temporary help services (15,246), followed by school and employee bus trans-
portation (13,999) and highway, street, and bridge construction (13,035).
Among the 10 industries with the highest levels of initial claims, 5 of the
10--all other plastics product manufacturing, light truck and utility vehicle
manufacturing, motor vehicle metal stamping, all other motor vehicle parts man-
ufacturing, and professional employer organizations--reached program highs in
2008 for the month of December (with data available back to 1995). (See
table A.)
Geographic Distribution (Not Seasonally Adjusted)
Of the 4 census regions, the Midwest had the highest number of initial claims
due to mass layoffs in December (146,155), followed by the South (94,307), the
West (65,942), and the Northeast (44,901). (See table 5.) Initial claims asso-
ciated with mass layoffs increased over the year in all 4 regions, with the Mid-
west (+48,809) and the South (+46,802) experiencing the largest increases. In
2008, the Northeast and the South regions reported their highest December levels
of initial claims in program history (with data available back to 1995).
- 3 -
Table B. Number of mass layoff events and initial claimants for unemployment
insurance, 1996-2008
Year Layoff events Initial claimants for
unemployment insurance
1996 ............. 14,111 1,437,628
1997 ............. 14,960 1,542,543
1998 ............. 15,904 1,771,069
1999 ............. 14,909 1,572,399
2000 ............. 15,738 1,835,592
2001 ............. 21,467 2,514,862
2002 ............. 20,277 2,245,051
2003 ............. 18,963 1,888,926
2004 ............. 15,980 1,607,158
2005 ............. 16,466 1,795,341
2006 ............. 13,998 1,484,391
2007 ............. 15,493 1,598,875
2008 ............. 21,137 2,130,220
Of the 9 geographic divisions, the East North Central (108,017) and the
Pacific (53,162) had the highest numbers of initial claims due to mass lay-
offs in December. (See table 5.) All 9 divisions experienced over-the-year
increases in initial claims, led by the East North Central (+33,643) and the
East South Central (+23,850). This year, the Middle Atlantic, West North
Central, East South Central, West South Central, and Mountain divisions
reached their highest levels of initial claims for December in program his-
tory.
California recorded the highest number of initial claims filed due to
mass layoff events in December with 43,265. The states with the next highest
number of mass layoff initial claims were Ohio (27,836), Illinois (25,885),
and Michigan (24,508). (See table 6.) In 2008, 13 states reached program
highs in initial claims for the month of December--Alabama, Colorado, Florida,
Hawaii, Kansas, Kentucky, Louisiana, Mississippi, Nevada, North Carolina, North
Dakota, Ohio, and Tennessee. Forty-two states and the District of Columbia reg-
istered over-the-year increases in initial claims associated with mass layoffs,
led by Ohio (+12,927), California (+12,675), Illinois (+10,873), and Alabama
(+10,483).
Review of 2008
For all of 2008, the total numbers of mass layoff events at 21,137, and
initial claims, at 2,130,220, reached their highest annual levels since 2001
and 2002, respectively. (See table B.)
The 10 detailed industries with the highest number of mass layoff initial
claims in 2008 accounted for 26 percent of the total for the year. (See
table C.) Temporary help services, school and employee bus transportation, and
food service contractors ranked first, second, and third among the 10 industries
in both 2008 and 2007. In 2008, light truck and utility vehicle manufacturing
entered the top 10 industries in terms of initial claims, displacing discount
department stores.
Manufacturing accounted for 33 percent of all mass layoff events and 41 percent
of initial claims filed during 2008, up slightly from 2007 (30 and 38 percent,
respectively). The number of manufacturing claimants was highest in transportation
equipment manufacturing, 323,676, followed by food manufacturing, 72,081, and wood
product manufacturing, 56,374.
Among the major industry sectors, manufacturing had the largest over-the-year
increase in mass layoff-related initial claims (+260,213) from 2007 to 2008. With-
in manufacturing, transportation equipment (+95,463), plastics and rubber products
(+24,638), and fabricated metal products (+23,083) experienced the largest increases
from the previous year. Administrative and waste services had the second largest
increase (+78,183) among the major industry sectors, due to more layoff activity in
administrative and support services (+77,864).
Among the twenty-one major industry sectors, six registered series highs for
both mass layoff events and initial claims for all of 2008--construction; trans-
portation and warehousing; finance and insurance; real estate and rental and
leasing; management of companies and enterprises; and accommodation and food
services.
- 4 -
Table C. Industries with the largest number of mass layoff initial claims in 2008
2008 2007
Industry
Initial Rank Initial Rank
claims claims
Temporary help services ....................... 134,699 1 96,991 1
School and employee bus transportation ........ 79,083 2 76,230 2
Food service contractors ...................... 54,677 3 57,131 3
Professional employer organizations ........... 54,016 4 31,062 8
Automobile manufacturing ...................... 51,804 5 51,746 4
Motion picture and video production ........... 45,394 6 51,133 5
Highway, street, and bridge construction ...... 39,467 7 40,804 6
Light truck and utility vehicle manufacturing . 38,450 8 16,522 14
Heavy duty truck manufacturing ................ 36,788 9 31,076 7
Elementary and secondary schools .............. 28,996 10 20,385 10
The Midwest reported the highest number of initial claims filed due to mass
layoffs during 2008 (676,591). Layoffs in transportation equipment manufacturing
accounted for 30 percent of the claims in the Midwest. Fabricated metal product
manufacturing, machinery manufacturing, and administrative and support services,
together accounted for an additional 17 percent of layoffs in that region in 2008.
The fewest number of mass layoff initial claims during 2008 was reported in the
Northeast (316,191).
From 2007 to 2008, all 4 regions had over-the-year increases in the number
of initial claims from mass layoffs, led by the South (+176,875) and Midwest
(+167,160). All 9 geographic divisions also experienced higher claimant activ-
ity in mass layoffs when compared with 2007, with the largest increases occur-
ring in the East North Central (+123,510), the Pacific (+117,939), and the East
South Central (+65,588).
Among the 50 states and the District of Columbia, California recorded the
largest number of initial claims (446,480) filed in mass layoff events during
2008, accounting for 21 percent of the national total. The states with the
next highest numbers of initial claims were Michigan (132,468), Ohio (131,813),
Pennsylvania (128,041), and Illinois (103,685). Eleven states--Florida, Hawaii,
Indiana, Kentucky, Montana, New Mexico, New York, North Dakota, Tennessee, Vermont,
and Wyoming--recorded series highs in mass layoff claimant activity in 2008, while
two states--Maine and Virginia--reported series lows.
For all of 2008, California reported the largest over-the-year increase in
initial claims (+88,486), followed by Ohio (+48,384) and Florida (+38,960). The
largest over-the-year decreases were reported in Maryland (-5,056), Virginia
(-4,758), and New Jersey (-1,115).
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 Fourth Quarter 2008 is scheduled to be
released on Friday, February 13. The report on Mass Layoffs in January 2009 is
scheduled to be released on Wednesday, February 25.
Bureau of Labor Statistics
