Mass Layoffs Summary


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.





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Last Modified Date: September 23, 2008