After a few months of showing signs of easing, mass layoffs for August 2009 ticked higher, according to a report released by the Bureau of Labor Statistics (BLS) of the Commerce Department. Even though the report is nothing to panic over, it should cause those expecting a strong recovery in consumer spending to adjust their expectations.
Employers took 2,690 mass layoff actions in August that resulted in the separation of 259,307 workers, seasonally adjusted. A “mass layoff” is defined as a reduction of employment of at least 50 persons from a single employer.
The number of mass layoff events in August represent an increase by 533 from July 2009. Year-over-year, the number of mass layoffs increased by 803, and associated initial claims increased by 70,356.
Until August, the number of monthly mass layoffs had been easing steadily since April. Seven of the 19 major industry sectors reported program highs in terms of average weekly initial claimants: construction; wholesale trade; retail trade; management of companies and enterprises; educational services; arts, entertainment and recreation; and accommodation and food services.
Manufacturing continues to lead the decline in jobs. The sector accounted for 31 percent of all mass layoffs and 33 percent of initial claims filed in August 2009.
Among the 9 geographic divisions in the analysis, the Pacific (30,781) had the highest number of initial claims due to mass layoffs in August, followed by the East North Central (25,962) and the Middle Atlantic (23,491).
Among states, California recorded the highest number of average weekly initial claims in August 2009 with 6,521, even though it had the largest over-the-year decrease in average weekly claims (-704). The year-over-decrease was largely due to a drop in claims from the administrative and support services industry. The states with the next highest number of average weekly initial claims were New York (2,851), Pennsylvania (2,481), and Florida (1,949). Thirty states and the District of Columbia experienced over-the-year increases in average weekly claims, led by Pennsylvania, New York, and Illinois.
Please click the following link to view the full BLS report: Mass Layoffs Summary.
Gregg D. Killoren
victoria1014
