For release 10:00 a.m. (EDT) Thursday, October 22, 2009 USDL-09-1272
Technical information: (202) 691-6392 * mlsinfo@bls.gov * www.bls.gov/mls
Media contact: (202) 691-5902 * PressOffice@bls.gov
MASS LAYOFFS -- SEPTEMBER 2009
Employers took 2,561 mass layoff actions in September that resulted in
the separation of 248,006 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 September decreased by 129 from the prior month, and the num-
ber of associated initial claims decreased by 11,301. Over the year,
the number of mass layoff events increased by 271, and associated ini-
tial claims increased by 7,285. Year-to-date mass layoff events (23,745)
and initial claims (2,410,208) both recorded program highs. In September,
856 mass layoff events were reported in the manufacturing sector, sea-
sonally adjusted, resulting in 97,066 initial claims. Over the month,
the number of manufacturing events decreased by 44, while associated
initial claims increased by 3,174. (See table 1.)
During the 22 months from December 2007 through September 2009, the
total number of mass layoff events (seasonally adjusted) was 47,230,
and the number of initial claims filed (seasonally adjusted) in those
events was 4,804,642. (December 2007 was the start of a recession as
designated by the National Bureau of Economic Research.)
The national unemployment rate was 9.8 percent in September 2009, sea-
sonally adjusted, little changed from 9.7 percent the prior month and
up from 6.2 percent a year earlier. In September, total nonfarm pay-
roll employment decreased by 263,000 over the month and by 5,785,000
from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in September was 1,371 on a not sea-
sonally adjusted basis; the number of associated initial claims was
123,177. (See table 2.) Over the year, the number of mass layoff
events increased by 79, while associated initial claims decreased by
6,409. Five of the 19 major industry sectors reported program highs in
terms of average weekly initial claimants for the month of September:
mining; utilities; wholesale trade; finance and insurance; and manage-
ment of companies and enterprises. (Average weekly analysis mitigates
the effect of differing lengths of months. See the Technical Note.)
The manufacturing sector accounted for 33 percent of all mass layoff
events and 42 percent of initial claims filed in September 2009. A
year earlier, manufacturing made up 28 percent of events and 36 per-
cent of initial claims. Within manufacturing, the number of claimants
in September was greatest in machinery (12,389) and transportation
equipment (7,331). (See table 3.) The construction sector accounted
for 12 percent of mass layoff events and 9 percent of initial claims.
Of the 10 detailed industries with the largest number of mass layoff
initial claims, 3 reached a series high for September: nonresidential
electrical contractors; farm machinery and equipment manufacturing;
and construction machinery manufacturing. This September, the indus-
try with the largest number of initial claims was temporary help ser-
vices. (See table A.)
Table A. Industries with the largest number of mass layoff initial claims in
September 2009, not seasonally adjusted
September peak
Industry
Initial Year Initial
claims claims
Temporary help services (1) ................... 5,635 2001 12,752
Construction machinery manufacturing .......... 3,452 2009 3,452
Discount department stores .................... 3,446 2005 3,550
Farm machinery and equipment manufacturing .... 2,982 2009 2,982
Automobile manufacturing ...................... 2,646 2004 (2)
Professional employer organizations (1) ....... 2,548 2008 4,520
Motion picture and video production ........... 2,431 1997 11,176
Elementary and secondary schools .............. 2,033 2005 15,815
Hotels and motels, except casino hotels ....... 1,996 2001 10,886
Nonresidential electrical contractors ......... 1,759 2009 1,759
1 See the Technical Note for more information on these industries.
2 Data do not meet BLS or state agency disclosure standards.
Geographic Distribution (Not Seasonally Adjusted)
Among the 4 census regions, the Midwest registered the highest number
of initial claims in September due to mass layoffs (38,137), followed
by the West (37,480) and the South (28,943). (See table 5.) Initial
claims associated with mass layoffs increased over the year in 2 of
the 4 regions, with the Midwest experiencing the largest increase
(+11,491). In 2009, the Midwest reported its highest September level
of average weekly initial claims (9,534) in program history.
Of the 9 geographic divisions, the Pacific had the highest number of
initial claims due to mass layoffs in September, followed by the East
North Central and the Middle Atlantic. (See table 5.) Seven of the 9
divisions experienced over-the-year increases in initial claims, led
by the East North Central (+7,217). This year, the East North Central
division reached a program high for September in terms of average
weekly initial claims.
California recorded the highest number of initial claims in September,
with 28,797, even though it had an over-the-year decrease in initial
claims (-5,787). The over-the-year decrease in California was largely
due to a drop in claims from the administrative and support services
industry. The states with the next highest number of mass layoff ini-
tial claims were Illinois (10,743), Pennsylvania (8,587), and Michigan
(6,167). (See table 6.) Twenty-eight states experienced over-the-year
increases in initial claims, led by Illinois, Pennsylvania, and Kansas.
In 2009, six states reached program highs in average weekly initial
claims for the month of September: Alaska, Colorado, Illinois, Iowa,
Kansas, and Wisconsin.
Louisiana registered the largest decrease in initial claims from
September of 2008, when Hurricane Gustov contributed to higher lay-
off activity.
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 (re-
ferred to as "extended mass layoffs"). The quarterly release provides
more information on the industry classification and location of the
establishment and on the demographics of the laid-off workers. Be-
cause 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.
____________
Extended Mass Layoffs in the Third Quarter of 2009 is scheduled to
be released on Tuesday, November 10, 2009, at 10:00 a.m. (EST). Mass
Layoffs in October 2009 is scheduled to be released on Friday,
November 20, 2009, at 10:00 a.m. (EST).
