Technical information:(202) 691-6392 USDL 08-1342
http://www.bls.gov/mls/
For release: 10:00 A.M. (EDT)
Media contact: (202) 691-5902 Tuesday, September 23, 2008
MASS LAYOFFS IN AUGUST 2008
In August, employers took 1,772 mass layoff actions, seasonally ad-
justed, 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 173,955, on a
seasonally adjusted basis. Layoff events reached a program high for the
month of August (with data available back to 1995), and associated initial
claimants reached its highest level for the month since 2001. The number
of mass layoff events this August increased by 260 from the prior month,
while the number of associated initial claims rose by 22,784. In August,
599 mass layoff events were reported in the manufacturing sector, season-
ally adjusted, resulting in 72,244 initial claims. Over the month, mass
layoff events in manufacturing increased by 156, and initial claims in-
creased by 14,774. (See table 1.)
From January through August 2008, the total number of mass layoff
events (seasonally adjusted), at 12,542, and initial claims (seasonally
adjusted), at 1,274,765, were the highest for the January-August period
since 2003.
The national unemployment rate was 6.1 percent in August, seasonally
adjusted, up from 5.7 percent in the prior month and from 4.7 percent a
year earlier. In August, total nonfarm payroll employment decreased by
84,000 over the month and by 283,000 from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in August was 1,427 on a not season-
ally adjusted basis; the number of associated initial claims was 139,999.
(See table 2.) Over the year, increases were recorded in both the number
of layoff events (+464) and initial claims (+46,541). The largest over-
the-year increases in initial claims occurred in transportation equipment
manufacturing (+14,191) and in administrative and waste services (+4,524).
The largest decrease in initial claims occurred in credit intermediation
and related activities (-6,363).
The manufacturing sector accounted for 29 percent of all mass layoff
events and 37 percent of initial claims filed in August; a year earlier,
manufacturing made up 23 percent of events and 25 percent of initial
claims. In August 2008, the number of manufacturing claimants was great-
est in transportation equipment manufacturing (19,787), followed by machin-
ery manufacturing (4,887). (See table 3.) Administrative and waste ser-
vices accounted for 15 percent of mass layoff events and 14 percent of as-
sociated initial claims, primarily from temporary help services.
The six-digit NAICS industry with the largest number of initial claims
was temporary help services (10,585), followed by school and employee bus
transportation (6,455). Among the 10 industries with the highest levels
of initial claims, 4 of the 10--professional employer organizations, motor
home manufacturing, full-service restaurants, and all other motor vehicle
parts manufacturing--reached program highs in 2008 for the month of August
(with data available back to 1995). (See table A.)
- 2 -
Table A. Industries with the largest number of mass layoff initial claims
in August 2008
-----------------------------------------------------------------------------
| | August peak
Industry |Initial |----------------------
| claims | |
| | Year |Initial claims
-----------------------------------------------------------------------------
| | |
Temporary help services .....................| 10,585 | 1999 | 11,533
School and employee bus transportation ......| 6,455 | 2003 | 6,538
Professional employer organizations .........| 5,252 | 2008 | 5,252
Motion picture and video production .........| 4,516 | 2003 | 6,812
Automobile manufacturing ....................| 3,856 | 2001 | 8,166
Heavy duty truck manufacturing ..............| 3,214 | 2006 | 4,896
Motor home manufacturing ....................| 2,579 | 2008 | 2,579
Full-service restaurants ....................| 2,275 | 2008 | 2,275
All other motor vehicle parts manufacturing .| 2,135 | 2008 | 2,135
Discount department stores ..................| 2,045 | 2007 | 2,953
| | |
-----------------------------------------------------------------------------
Geographic Distribution (Not Seasonally Adjusted)
Of the 4 census regions, the West had the highest number of initial
claims in August due to mass layoffs (45,837). The South had the second
largest count of initial claims among the regions (38,188), followed by
the Midwest with 33,238 and the Northeast with 22,736. (See table 5.)
Initial claimants in mass layoffs increased over the year in all 4 re-
gions--the South (+16,736), the Midwest (+14,919), the West (+8,546), and
the Northeast (+6,340). All 9 divisions experienced over-the-year in-
creases in initial claims, led by the East North Central (+11,105) and
the South Atlantic (+9,681).
California recorded the highest number of initial claims filed due to
mass layoff events in August with 36,120, largely due to layoffs in ad-
ministrative and support services and in motion picture and sound record-
ing industries. The states with the next highest numbers of mass layoff
initial claims were New York (10,760), Florida (9,849), and Ohio (7,994).
(See table 6.)
Thirty-six states and the District of Columbia registered over-the-
year increases in initial claims associated with mass layoffs, led by
California (+5,054), Ohio (+4,930), and Florida (+4,674). States with
the largest over-the-year decreases in claims were Arizona (-704) and
Washington (-461).
_____________________________
The report on Mass Layoffs in September 2008 is scheduled to be re-
leased on Wednesday, October 22.