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U.S. Mass Layoffs in June 2009
added: 2009-07-24

Employers took 2,763 mass layoff actions in June that resulted in the separation of 279,231 workers, seasonally adjusted, as measured bynew filings for unemployment insurance benefits during the month, theBureau of Labor Statistics of the U.S. Department of Labor reported. Each action involved at least 50 persons from a single employer. The number of mass layoff events decreased by 170 and associated initial claims decreased by 33,649.

Both measures had been at record high levels in May. Over the year, the number of mass layoff events increased by 1,046, and associated initial claims increased by 104,483. In June, 1,235 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 159,310 initial claims. Over the year, the number of manufacturing events increased by 680, and associated initial claims increased by 79,566.

During the 19 months from December 2007 through June 2009, the total number of mass layoff events (seasonally adjusted) was 39,822, and the number of initial claims filed (seasonally adjusted) in those events was 4,090,538. (December 2007 was designated as the start of a recession by the National Bureau of Economic Research.)

The national unemployment rate was 9.5 percent in June 2009, seasonally adjusted, up slightly from 9.4 percent the prior month and up from 5.6 percent a year earlier. In June, total nonfarm payroll employment decreased by 467,000 over the month and by 5,664,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in June was 2,519 on a not seasonally adjusted basis; the number of associated initial claims was 256,357. Over the year, increases were recorded in both the number of mass layoff events (+897) and initial claims (+89,615). This year, both average weekly events and initial claimants reached their highest June levels in program history; data are available back to 1995. Ten of the 19 major industry sectors reported program highs in terms of average weekly initial claimants for the month of June--construction; wholesale trade; retail trade; transportation and warehousing; real estate and rental and leasing; management of companies and enterprises; administrative and waste services; health care and social assistance; arts, entertainment, and recreation; and accommodation and food services. Government also reported a program high in terms of average weekly initial claimants for the month of June.

The manufacturing sector accounted for 27 percent of all mass layoff events and 33 percent of initial claims filed in June 2009; a year earlier, manufacturing made up 19 percent of events and 25 percent of initial claims. This June, the number of manufacturing claimants was greatest in transportation equipment (24,865) and machinery (14,644). The transportation and warehousing sector accounted for 7 percent of mass layoff events and 9 percent of the associated initial claims during the month.

Of the 10 detailed industries with the largest number of mass layoff initial claims, 4 reached a series high for June: construction machinery manufacturing; aircraft manufacturing; professional employer organizations; and elementary and secondary schools. The industry with the largest number of initial claims was elementary and secondary schools (28,751), which includes both publicly- and privately-owned
entities.

Geographic Distribution (Not Seasonally Adjusted)

Among the 4 census regions, the Midwest registered the highest number of initial claims in June due to mass layoffs (76,301), followed by the West (71,501) and the South (61,962). Initial claims associated with mass layoffs increased over the year in all 4 regions, with the Midwest (+36,910) and the South (+23,509) experiencing the largest increases. In 2009, all regions except the Midwest reported their highest June levels of average weekly initial claims in program history.

Of the 9 geographic divisions, the Pacific (64,317) had the highest number of initial claims due to mass layoffs in June, followed by the
East North Central (59,347) and the Middle Atlantic (40,077). All divisions experienced over-the-year increases in initial claims, led by the East North Central (+30,798), the Pacific (+13,043), and the South Atlantic (+13,016). This year, 4 of the 9 divisions - Middle Atlantic, South Atlantic, East South Central, and Pacific - reached program highs for June in terms of average weekly initial claims.

California recorded the highest number of initial claims filed due to mass layoff events in June with 56,138. The states with the next highest number of mass layoff initial claims were Illinois (20,576), Pennsylvania (18,363), and Florida (15,785). Forty three states registered over-the-year increases in initial claims associated with mass layoffs, led by Illinois (+15,809), California (+11,384), Michigan (+5,895), and Alabama (+5,746). In 2009, 16 states reached program highs in average weekly initial claims for the month of June - Alabama, California, Florida, Hawaii, Illinois, Iowa, Kansas, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Utah, Vermont, West Virginia, and Wisconsin.


Source: U.S. Department of Labor

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