Technical information: (202) 691-6392 USDL 09-0703
http://www.bls.gov/mls/
For release: 10:00 A.M. (EDT)
Media contact: (202) 691-5902 Tuesday, June 23, 2009
MASS LAYOFFS IN MAY 2009
Employers took 2,933 mass layoff actions in May that resulted in the
separation of 312,880 workers, seasonally adjusted, 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 mass layoff events in May increased by 221 from the prior month, and
the number of associated initial claims increased by 41,654. Over the
year, the number of mass layoff events increased by 1,232 and associated
initial claims increased by 132,322. Initial claims rose to its highest
level on record, while events matched the peak level from March 2009,
with data available back to 1995. In May, 1,331 mass layoff events were
reported in the manufacturing sector, seasonally adjusted, resulting in
165,802 initial claims. Over the year, manufacturing events and initial
claims more than doubled. (See table 1.)
During the 18 months from December 2007 through May 2009, the total
number of mass layoff events (seasonally adjusted) was 37,059, and the
number of initial claims (seasonally adjusted) was 3,811,307. (December
2007 was the start of a recession as designated by the National Bureau
of Economic Research.)
The national unemployment rate was 9.4 percent in May 2009, seasonally
adjusted, up from 8.9 percent the prior month and from 5.5 percent a year
earlier. In May, total nonfarm payroll employment decreased by 345,000
over the month and by 5,366,000 from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in May was 2,738, and the number of
associated initial claims was 289,628. (See table 2.) Over the year,
increases were recorded in both the number of mass layoff events (+1,186)
and initial claims (+130,157). This year, both average weekly events and
initial claimants reached their highest May levels in program history;
data are available back to 1995. (Average weekly analysis mitigates the
effect of differing lengths of months. See the Technical Note.) Eleven
of the 19 major industry sectors reported program highs in terms of aver-
age weekly initial claimants for the month of May--mining; construction;
manufacturing; wholesale trade; retail trade; finance and insurance; real
estate and rental and leasing; management of companies and enterprises;
administrative and waste services; health care and social assistance; and
accommodation and food services. Government also reported a program high
in terms of average weekly initial claimants for the month of May.
The manufacturing sector accounted for 37 percent of all mass layoff
events and 43 percent of initial claims filed in May 2009; a year earlier,
manufacturing made up 25 percent of events and 32 percent of initial claims.
This May, the number of manufacturing claimants was greatest in transpor-
tation equipment (46,816) and machinery (12,472). (See table 3.) The
administrative and waste services sector accounted for 11 percent of mass
layoff events and associated initial claims during the month.
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Table A. Industries with the largest number of mass layoff initial claims in May 2009,
not seasonally adjusted
May peak
Industry
Initial claims Year Initial claims
Temporary help services (1) ................... 16,658 2002 16,992
Automobile manufacturing ...................... 14,004 2009 14,004
Food service contractors ...................... 11,216 2009 11,216
Professional employer organizations (1) ....... 5,898 2009 5,898
Child day care services ....................... 4,396 2008 4,541
All other motor vehicle parts manufacturing ... 3,985 2009 3,985
Motor vehicle power train components mfg. ..... 3,900 2009 3,900
Motion picture and video production ........... 3,602 1999 8,985
Light truck and utility vehicle manufacturing . 3,570 2009 3,570
Department stores, except discount ............ 3,379 2009 3,379
1 See the Technical Note for more information on these industries.
Of the 10 detailed industries with the largest number of mass layoff
initial claims, 7 reached their May peak: automobile manufacturing; light
truck and utility vehicle manufacturing; motor vehicle power train com-
ponents manufacturing; all other motor vehicle parts manufacturing; de-
partment stores, except discount; professional employer organizations;
and food service contractors. The industry with the largest number of
initial claims was temporary help services (16,658). (See table A.)
Geographic Distribution (Not Seasonally Adjusted)
Of the 4 census regions, the Midwest registered the highest number of
initial claims in May due to mass layoffs (105,264), followed by the South
(72,375) and the West (70,576). (See table 5.) Initial claims associated
with mass layoffs increased over the year in all 4 regions, with the Midwest
(+59,802) and the South (+29,543) experiencing the largest increases. In
2009, all regions except the West reported their highest May levels of aver-
age weekly initial claims in program history.
Of the 9 geographic divisions, the East North Central (84,281) had the
highest number of initial claims due to mass layoffs in May, followed by
the Pacific (57,286) and the Middle Atlantic (35,548). (See table 5.) All
divisions experienced over-the-year increases in initial claims, led by the
East North Central (+47,949), the South Atlantic (+18,356), and the Pacific
(+17,276). This year, 6 of the 9 divisions--all except New England, West
South Central, and Pacific--reached May program highs in terms of average
weekly initial claims.
California recorded the highest number of initial claims filed due to
mass layoff events in May with 47,091. The states with the next highest
number of mass layoff initial claims were Michigan (26,344), Pennsylvania
(20,392), and Illinois (19,717). (See table 6.) Forty-four states and
the District of Columbia registered over-the-year increases in initial
claims associated with mass layoffs, led by Michigan (+18,205), California
(+13,006), Illinois (+11,659), and Pennsylvania (+11,417). In 2009, 30
states reached program highs in average weekly initial claims for the month
of May--Alaska, Arizona, Arkansas, Connecticut, Florida, Georgia, Illinois,
Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nebraska,
Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oregon,
Pennsylvania, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin,
and Wyoming.
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Note
The monthly data series in this release cover mass layoffs of 50 or more
workers beginning in a given month, regardless of the duration of the layoffs.
For private nonfarm establishments, information on the length of the layoff is
obtained later and issued in a quarterly release that reports on mass layoffs
lasting more than 30 days (referred to as "extended mass layoffs"). The quar-
terly release provides more information on the industry classification and
location 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.
______________________________
The report on Mass Layoffs in June 2009 is scheduled to be released on
Thursday, July 23.
