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US Mass Layoffs - May 2011
added: 2011-06-28

Employers took 1,599 mass layoff actions in May involving 143,540 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 workers from a single employer. The number of mass layoff events in May increased by 35, or 2 percent, from April, while the number of associated initial claims decreased by 387, or less than 1 percent. In May, 373 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 38,673 initial claims; both figures increased over the month.

The national unemployment rate was 9.1 percent in May, essentially unchanged from the prior month but down from 9.6 percent a year earlier. In May, total nonfarm payroll employment increased by 54,000 over the month and by 870,000 over the year.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in May was 1,367, not seasonally adjusted, resulting in 119,911 initial claims for unemployment insurance. The number of mass layoff events was about the same (1,354 events) as recorded in May 2010, while associated initial claims decreased by 3,422, or 3 percent. Fourteen of the 19 major industry sectors in the private economy reported over-the-year declines in initial claims, with the largest decreases occurring in construction, retail trade, and professional and technical services. The six-digit industry with the largest number of initial claims in May 2011 was temporary help services.

The manufacturing sector accounted for 20 percent of all mass layoff events and 21 percent of initial claims filed in May. A year earlier, manufacturing made up 16 percent of events and initial claims. Within this sector, the number of claimants in May 2011 was greatest in the food and transportation equipment subsectors. Twelve of the 21 manufacturing subsectors experienced over-the-year increases in initial claims, with the largest increases occurring in food and in transportation equipment.

Geographic Distribution (Not Seasonally Adjusted)]

Two of the 4 regions and 5 of the 9 divisions experienced over-the-year decreases in initial claims for unemployment insurance due to mass layoffs in May. Among the census regions, the West registered the largest over-the-year decrease in initial claims. Of the geographic divisions, the Pacific had the largest over-the-year decline in initial claims. The East South Central division registered the largest over-the-year increase in initial claims.

California recorded the highest number of mass layoff initial claims in May, followed by Pennsylvania, Florida, and Mississippi. Twenty-nine states experienced over-the-year increases in initial claims, led by Mississippi.


Source: U.S. Department of Labor

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