Mass Layoffs Decline to Lowest Levels Since July 2008

Employers took 1,797 mass layoff actions in November 2009 that resulted in the separation of 165,346 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Bureau of Labor Statistics reported today. Each action involved at least 50 persons from a single employer. The number of mass layoff events in November decreased by 330 from the prior month, and the number of associated initial claims decreased by 51,836, to their lowest levels since July 2008. However, year-to-date mass layoff events (27,669) and initial claims (2,792,736) both recorded program highs for a January to November period. (Data begin in April 1995.) In November, 481 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 56,243 initial claims. Both the number of events and initial claims in manufacturing decreased over the month.

The number of mass layoff events in November was 1,870 on a not-seasonally adjusted basis; the number of associated initial claims was 164,496.  Over the year, the number of mass layoff events decreased by 704, and associated initial claims decreased by 77,093. Thirteen of the 19 major industry sectors in the private economy reported over-the-year decreases in initial claimants for the month of November, led by manufacturing (-52,567), administrative and waste services (-8,122), retail trade (-6,346), and construction (-5,873).

Three of the 19 major industry sectors in the private economy reported program highs in terms of average weekly initial claimants for the month of November: arts, entertainment, and recreation; accommodation and food services; and other services, except public administration.

The manufacturing sector accounted for 28 percent of all mass layoff events and 33 percent of initial claims filed in November 2009. A year earlier, manufacturing made up 39 percent of events and 45 percent of initial claims. Within manufacturing, the number of claimants in November was greatest in transportation equipment and food. Transportation equipment manufacturing had the largest over-the-year decrease in initial claims (-11,236), while food services and drinking places had the highest increase (+2,862) among all three-digit North American Industry Classification System (NAICS) industries.

With regard to individual states, California recorded the highest number of initial claims in November, followed by Pennsylvania, Illinois, Wisconsin, and Michigan.  Thirty-seven states experienced over-the-year decreases in initial claims, led by California (-15,768), Indiana (-9,097), Ohio (-6,447), and Michigan (-6,108). In 2009, three states reached program highs in average weekly initial claims for the month of November: Nevada; North Carolina; and Wyoming.