Mass Layoffs For July 2009 Decline; Michigan Has Highest Unemployment Rate

Employment news for July 2009 was still grim, but generally followed the pattern of other economic indicators showing less severe declines.  In July, employers took 2,157 mass layoff actions 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 (BLS) of the U.S. Department of Labor has reported.  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 manufacturing events increased by 166, and associated initial claims increased by 14,618.

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.

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).

In a separate report on unemployment rates released by the BLS, fifteen states and the District of Columbia reported jobless rates of at least 10.0 percent in July 2009.  Michigan continued to have the highest unemployment rate among the states, 15.0 percent.  Rhode Island recorded the next highest rate, 12.7 percent, followed by Nevada, 12.5 percent; California and Oregon, 11.9 percent each; and South Carolina, 11.8 percent.  The rates in California, Nevada, and
Rhode Island set new series highs, along with the rate in Georgia (10.3 percent).  North Dakota again registered the lowest jobless rate, 4.2 percent in July.  In total, 26 states posted jobless rates significantly lower than the U.S. figure of 9.4 percent, 14 states and the District of Columbia had measurably higher rates, and 10 states had rates that were not significantly different from that of the nation.

Mass Layoffs Summary

Regional and State Employment and Unemployment Summary