Employers took 1,483 mass layoff actions in December involving 137,992 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 involved at least 50 persons from a single employer. The number of mass layoff events in December decreased by 96 from the prior month, and the number of associated initial claims decreased by 10,808. The number of events reached its lowest level since April 2008. In December, 319 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 35,977 initial claims; both figures declined over the month.

The total number of mass layoff events in 2010, at 19,564, not seasonally adjusted, and initial claims, at 1,854,596, were lower than in 2009 when both events and claims reached their highest annual levels on record. Among the 19 major industry sectors in the private economy, 17 reported over-the-year decreases in initial claims.

The national unemployment rate was 9.4 percent in December, down from 9.8 percent the prior month and 9.9 percent a year earlier. In December, total nonfarm payroll employment increased by 103,000 over the month and by 1,124,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in December was 1,931 on a not seasonally adjusted basis; the number of associated initial claims was 184,130. The number of mass layoff events was down by 379 from December 2009, and associated initial claims decreased by 30,518. Twelve of the 19 major industry sectors in the private economy reported over-the-year decreases in initial claims, with manufacturing having the largest decrease.

The manufacturing sector accounted for 24 percent of all mass layoff events and 29 percent of initial claims filed in December. A year earlier, manufacturing made up 27 percent of events and 30 percent of initial claims. Within manufacturing, the number of claimants in December was greatest in transportation equipment and in food. Thirteen of the 21 manufacturing subsectors experienced over-the-year decreases in initial claims, with the largest declines in machinery, furniture and related products, and fabricated metal products.

The six-digit industry with the largest number of initial claims in December was food service contractors, which reached a program high number of claims for the month of December.

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 December. Among the census regions, the Midwest registered the largest over-the-year declines 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 December, followed by Illinois, New York, and Pennsylvania. Thirty-nine states and the District of Columbia experienced over-the-year decreases in initial claims, led by California, Illinois, Pennsylvania, and Missouri.

Review of 2010

For all of 2010, on a not seasonally adjusted basis, the total numbers of mass layoff events, at 19,564, and initial claims, at 1,854,596, were lower than in 2009 when totals reached their highest annual levels on record. Among the 19 major industry sectors in the private economy, 17 reported over-the-year decreases in initial claims, led by manufacturing, which declined to its lowest annual level on record. Of the 17 sectors reporting over-the-year declines in claims, 9 decreased by record amounts.

The manufacturing sector accounted for 25 percent of all mass layoff events and 29 percent of initial claims filed in the private economy in 2010; in 2009 manufacturing made up 36 percent of events and 43 percent of initial claims. The number of manufacturing claimants in 2010 was highest in transportation equipment and in food. Total initial claims for all 21 manufacturing subsectors decreased between 2009 and 2010, with transportation equipment and machinery experiencing the largest declines.

The six-digit industry with the greatest number of initial claims in 2010 was temporary help services. Discount department stores and supermarkets and other grocery stores entered the highest 10 industries in terms of initial claims for the entire year, displacing construction machinery manufacturing and light truck and utility vehicle manufacturing. Among the highest 10 industries, food service contractors and elementary and secondary schools reached annual program highs in 2010.

All census regions and divisions experienced over-the-year decreases in initial claims from 2009 to 2010. The Midwest recorded the largest over-the-year decline among the regions. Of the geographic divisions, the East North Central and the Pacific experienced the greatest decreases in initial claims from 2009 to 2010.

Among the states, California, New York, Pennsylvania, Illinois, and Florida recorded the greatest numbers of initial claims during 2010. Forty-eight states and the District of Columbia experienced over-the-year decreases in total initial claims for the year, led by California, Illinois, Michigan, and Ohio.