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U.S. Mass Layoffs in January 2011
added: 2011-02-28

Employers took 1,534 mass layoff actions in January involving 149,799 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Bureau of Labor Statistics reported. Each mass layoff event involved at least 50 workers from a single employer. The number of mass layoff events in January increased by 51 from December, and the number of associated initial claims increased by 11,807. In January, 341 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 39,189 initial claims; both figures increased over the month.

The national unemployment rate was 9.0 percent in January, down from 9.4 percent the prior month and 9.7 percent a year earlier. In January, total nonfarm payroll employment increased by 36,000 over the month and by 984,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in January was 2,558 on a not seasonally adjusted basis; the number of associated initial claims was 246,463. The number of mass layoff events was down by 302 from January 2010, and associated initial claims decreased by 32,216. Eleven of the 19 major industry sectors in the private economy reported over-the-year declines in initial claims, with manufacturing having the largest decrease. The six-digit industry with the largest number of initial claims in January 2011 was temporary help services.

The manufacturing sector accounted for 27 percent of all mass layoff events and 30 percent of initial claims filed in January. A year earlier, manufacturing made up 34 percent of events and 38 percent of initial claims. Within manufacturing, the number of claimants in January was greatest in transportation equipment and in food. Eighteen of the 21 manufacturing subsectors experienced over-the-year decreases in initial claims, with the largest declines in machinery and fabricated metal products.

Geographic Distribution (Not Seasonally Adjusted)

Three of the 4 regions and 7 of the 9 divisions experienced over-the-year decreases in initial claims due to mass layoffs in January. Among the census regions, the Midwest registered the largest over-the-year decrease in initial claims. Of the geographic divisions, the East North Central had the largest over-the-year decline in initial claims.

California recorded the highest number of initial claims in January, followed by New York and Pennsylvania. Thirty-two states experienced over-the-year decreases in initial claims, led by Michigan, Ohio, and Illinois.


Source: U.S. Department of Labor

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