For release 10:00 a.m. (EST) Friday, November 20, 2009 USDL-09-1404
Technical information: (202) 691-6392 * mlsinfo@bls.gov * www.bls.gov/mls
Media contact: (202) 691-5902 * PressOffice@bls.gov
MASS LAYOFFS -- OCTOBER 2009
Employers took 2,127 mass layoff actions in October that resulted in the
separation of 217,182 workers, seasonally adjusted, as measured by new fil-
ings 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 October decreased
by 434 from the prior month, and the number of associated initial claims de-
creased by 30,824. Over the year, the number of mass layoff events decreased
by 77, and associated initial claims decreased by 13,148. Year-to-date mass
layoff events (25,872) and initial claims (2,627,390) both recorded program
highs. (Data begin in April 1995.) In October, 619 mass layoff events were
reported in the manufacturing sector, seasonally adjusted, resulting in
70,572 initial claims. Over the month, the number of manufacturing events de-
creased by 237, and associated initial claims decreased by 26,494. (See
table 1.)
During the 23 months from December 2007 through October 2009, the total num-
ber of mass layoff events (seasonally adjusted) was 49,357, and the number
of initial claims filed (seasonally adjusted) in those events was 5,021,824.
(December 2007 was the start of a recession as designated by the National
Bureau of Economic Research.)
The national unemployment rate was 10.2 percent in October 2009, seasonally
adjusted, up from 9.8 percent the prior month and from 6.6 percent a year
earlier. In October, total nonfarm payroll employment decreased by 190,000
over the month and by 5,504,000 from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in October was 1,934 on a not seasonally
adjusted basis; the number of associated initial claims was 193,904. (See
table 2.) Over the year, the number of mass layoff events decreased by 191,
and associated initial claims decreased by 27,880. 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 October: construction;
wholesale trade; and management of companies and enterprises. Both state
and local government reached October highs in terms of average weekly claims.
(Average weekly analysis mitigates the effect of differing lengths of months.
See the Technical Note.)
The manufacturing sector accounted for 29 percent of all mass layoff events
and 36 percent of initial claims filed in October 2009. A year earlier, man-
ufacturing made up 32 percent of events and 45 percent of initial claims.
Within manufacturing, the number of claimants in October was greatest in
transportation equipment (17,069) and machinery (10,892). Transportation
equipment had the largest over-the-year decrease in initial claims (-19,041),
while machinery had the highest increase (+2,995) among all three-digit NAICS
industries. (See table 3.)
The administrative and waste services sector accounted for 13 percent of both
mass layoff events and initial claims, down slightly from 16 percent of events
and 14 percent of initial claims in October 2008. The construction sector ac-
counted for 11 percent of events and 8 percent of initial claims, about the
same as a year earlier (10 percent and 7 percent, respectively).
The six-digit NAICS industry with the largest number of initial claims in
October 2009 was temporary help services. Of the 10 detailed industries with
the largest number of mass layoff initial claims, 3 reached a series high for
any October: construction machinery manufacturing; highway, street, and bridge
construction; and food service contractors. (See table A.)
Table A. Industries with the largest number of mass layoff initial
claims in October 2009, not seasonally adjusted
October peak
Industry
Initial Year Initial
claims claims
Temporary help services (1) .................. 14,056 1998 18,760
Motion picture and video production .......... 6,566 1997 7,692
Professional employer organizations (1) ...... 6,402 2008 7,242
Automobile manufacturing ..................... 5,041 2008 10,508
Construction machinery manufacturing ......... 4,770 2009 4,770
Highway, street, and bridge construction ..... 3,870 2009 3,870
Farm labor contractors and crew leaders ...... 3,399 1998 9,617
Food service contractors ..................... 3,233 2009 3,233
Discount department stores ................... 3,193 2002 4,959
Hotels and motels, except casino hotels ...... 3,032 2001 5,795
1 See the Technical Note for more information on these industries.
Geographic Distribution (Not Seasonally Adjusted)
Among the four census regions, the West registered the highest number of in-
itial claims in October due to mass layoffs, followed by the Midwest and the
South. (See table 5.) Initial claims associated with mass layoffs decreased
over the year in all of the regions, with the Midwest experiencing the largest
decrease (-14,418), mostly in transportation equipment manufacturing.
Of the nine geographic divisions, the Pacific had the highest number of ini-
tial claims due to mass layoffs in October, followed by the East North Central,
the South Atlantic, and the Middle Atlantic. (See table 5.) Eight of the 9 di-
visions experienced over-the-year decreases in initial claims, led by the
East North Central (-10,919).
California recorded the highest number of initial claims in October, followed
by Illinois, Florida, Wisconsin, Pennsylvania, and Ohio. (See table 6.)
Twenty-six states experienced over-the-year decreases in initial claims, led
by Michigan (-7,308), Ohio (-7,195), and Kentucky (-3,671); all three exper-
ienced the largest decreases in initial claims in transportation equipment
manufacturing. In 2009, eight states reached program highs in average weekly
initial claims for the month of October: Arizona, Iowa, Montana, New Mexico,
New York, Utah, Wisconsin, and Wyoming.
Note
The monthly data series in this release cover mass layoffs of 50 or more work-
ers beginning in a given month, regardless of the duration of the layoffs. For
private nonfarm establishments, information on the length of the layoff is ob-
tained later and issued in a quarterly release that reports on mass layoffs
lasting more than 30 days (referred to as "extended mass layoffs"). The quart-
erly release provides more information on the industry classification and lo-
cation 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.
_____________
Mass Layoffs in November is scheduled to be released on Tuesday, December 22,
2009, at 10:00 a.m. (EST).
