Technical information: (202) 691-6392 USDL 08-1497
http://www.bls.gov/mls/
For release: 10:00 A.M. (EDT)
Media contact: (202) 691-5902 Wednesday, October 22, 2008
MASS LAYOFFS IN SEPTEMBER 2008
In September, employers took 2,269 mass layoff actions, seasonally
adjusted, as measured by new filings for unemployment insurance bene-
fits 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
235,681, on a seasonally adjusted basis. The number of mass layoff
events this September increased by 497 from the prior month, while the
number of associated initial claims rose by 61,726. Layoff events
reached their highest level since September 2001, a month that experi-
enced substantial layoff activity due to the September 11 attacks. Mass
layoff initial claims reached their highest level since September 2005,
which was a month with high layoff activity due to Hurricane Katrina.
The effects of Hurricanes Gustav and Ike contributed to the higher
September 2008 layoff activity. In September, 603 mass layoff events
were reported in the manufacturing sector, seasonally adjusted, result-
ing in 81,414 initial claims. Over the month, mass layoff events in
manufacturing increased by 4 and initial claims increased by 9,170.
(See table 1.)
From January through September 2008, the total number of events
(seasonally adjusted), at 14,811, and initial claims (seasonally
adjusted), at 1,510,446, were the highest for the January-September
period since 2003 and 2002, respectively.
The national unemployment rate was 6.1 percent in September, sea-
sonally adjusted, unchanged from the prior month and up from 4.7 per-
cent a year earlier. In September, total nonfarm payroll employment
decreased by 159,000 over the month and by 519,000 from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in September was 1,292 on a not
seasonally adjusted basis; the number of associated initial claims was
129,586. (See table 2.) Over the year, increases were recorded in
both the number of layoff events (+575) and initial claims (+62,201).
In 2008, three major sectors reported program highs in terms of mass
layoff initial claims for the month of September--construction, pro-
fessional and technical services, and finance and insurance (with
data available back to 1995).
The manufacturing sector accounted for 28 percent of all mass layoff
events and 36 percent of initial claims filed in September 2008; a year
earlier, manufacturing made up 34 percent of events and 44 percent of
initial claims. In September, the number of manufacturing claimants was
greatest in transportation equipment manufacturing (19,278), followed by
machinery manufacturing (4,058). (See table 3.) Administrative and
waste services accounted for 14 percent of mass layoff events and associ-
ated initial claims during the month, primarily from temporary help serv-
ices.
The six-digit NAICS industry with the largest number of initial claims
was temporary help services (9,491), followed by professional employer or-
ganizations (4,520). Among the 10 industries with the highest levels of
initial claims, 2 of the 10--professional employer organizations and air-
craft manufacturing--reached program highs in 2008 for the month of
September (with data available back to 1995). (See table A.)
- 2 -
Table A. Industries with the largest number of mass layoff initial claims in
September 2008
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| |
| Initial | September peak
Industry | claims |---------------------
| | |
| | Year |Initial claims
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| | |
Temporary help services .......................| 9,491 | 2001 | 12,752
Professional employer organizations ...........| 4,520 | 2008 | 4,520
Aircraft manufacturing ........................| (1) | 2008 | (1)
Payroll services ..............................| 3,707 | 1999 | 4,737
Automobile manufacturing ......................| 3,464 | 2004 | (1)
Light truck and utility vehicle manufacturing .| 2,877 | 2000 | 3,688
Motion picture and video production ...........| 2,757 | 1997 | 11,176
Elementary and secondary schools ..............| 2,259 | 2005 | 15,815
Limited-service restaurants ...................| 2,042 | 2005 | 6,097
Ship building and repairing ...................| 1,897 | 2005 | 8,811
| | |
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1 Data do not meet BLS or state agency disclosure standards.
Geographic Distribution (Not Seasonally Adjusted)
Of the 4 census regions, the West had the highest number of initial
claims in September due to mass layoffs (47,522), followed by the South
(43,772). (See table 5.) Initial claimants in mass layoffs increased
over the year in all 4 regions with the South (+27,859) and the West
(+21,983) experiencing the largest increases, followed by the Midwest
(+9,373) and the Northeast (+2,986).
Of the 9 divisions, the Pacific had the highest number of initial
claims in September due to mass layoffs (43,847), followed by the West
South Central (26,693). (See table 5.) Eight of the 9 divisions ex-
perienced over-the-year increases in initial claims, led by the West
South Central (+22,101) and the Pacific (+20,474).
California recorded the highest number of initial claims filed due
to mass layoff events in September with 34,584. The next highest
states reporting mass layoff initial claims were Louisiana (14,929)
and Texas (10,616). (See table 6.) Six states reached program highs
in 2008 for the month of September--Indiana, Ohio, Texas, Washington,
Wisconsin, and Wyoming. Thirty-five states registered over-the-year
increases in initial claims associated with mass layoffs, led by
Louisiana (+14,366), California (+13,440), and Texas (+8,010). The
effects of Hurricane Gustav in Louisiana and of Hurricane Ike in Texas
contributed to the higher September 2008 layoff activity in those two
states.
______________________________
The report on Extended Mass Layoffs in the Third Quarter 2008 is
scheduled to be released on Thursday, November 13.