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U.S. Mass Layoffs in September 2009
added: 2009-10-24

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.

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 number of associated initial claims decreased by 11,301. Over the year, the number of mass layoff events increased by 271, and associated initial 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, seasonally 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.

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, seasonally adjusted, little changed from 9.7 percent the prior month and up from 6.2 percent a year earlier. In September, total nonfarm payroll 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 seasonally adjusted basis; the number of associated initial claims was
123,177. 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 management of companies and enterprises.

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 percent of initial claims. Within manufacturing, the number of claimants in September was greatest in machinery (12,389) and transportation equipment (7,331). 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 industry with the largest number of initial claims was temporary help services.

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). 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. 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 initial claims were Illinois (10,743), Pennsylvania (8,587), and Michigan(6,167). 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 layoff activity.


Source: U.S. Department of Labor

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