In July, employers took 1,221 mass layoff actions, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the Bureau of Labor Statistics of the U.S. Department of Labor reported.

Each action involved at least 50 persons from a single establishment; the number of workers involved totaled 124,835, on a seasonally adjusted basis. The number of mass layoff events in July remained about the same when compared with the prior month, and the number of associated initial claims decreased by 3,062. Over the month, 383 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 50,036 initial claims. Compared with June, mass layoff activity in manufacturing increased by 43 events, and initial claims increased by 10,763.

From January through July 2007, the total number of events (seasonally adjusted) at 8,654, and initial claims (seasonally adjusted) at 898,372, were higher than in January-July 2006 (7,845 and 820,097, respectively).

The national unemployment rate was 4.6 percent in July, essentially unchanged from 4.5 percent in the prior month, but down from 4.8 percent a year earlier. Total nonfarm payroll employment increased by 92,000 over the month and by 1.9 million over the year.

Industry Distribution (Not Seasonally Adjusted)

The 10 industries reporting the highest numbers of mass layoff initial claims, not seasonally adjusted, accounted for 34 percent of the total
initial claims in July. The industry with the highest number of initial claims was automobile manufacturing with 13,186, followed by temporary help services with 10,738 and all other motor vehicle parts manufacturing with 6,748. Together, these three industries accounted for 17 percent of all initial claims due to mass layoffs during the month.

The manufacturing sector accounted for 43 percent of all mass layoff events and 58 percent of all related initial claims filed in July, unchang-
ed from a year earlier. In July 2007, the number of manufacturing claimants was highest in transportation equipment manufacturing (48,795, largely in automobile manufacturing, all other motor vehicle parts manufacturing, and motor vehicle metal stamping), followed by plastics and rubber products manufacturing (7,487) and machinery manufacturing (6,994).

Administrative and waste services accounted for 14 percent of mass layoff events and 10 percent of initial claims in July, primarily from temporary help services and professional employer organizations. Transportation and warehousing comprised 6 percent of events and 5 percent of initial claims filed over the month, with the majority of layoffs in transit and ground passenger transportation and truck transportation. Six percent of all mass layoff events and 4 percent of related initial claims filed were from government, mainly from elementary and secondary schools. Retail trade made up 5 percent of events and 4 percent of initial claims, mostly from general merchandise stores.

On a not seasonally adjusted basis, the number of mass layoff events inJuly, at 1,599, was up by 88 from a year earlier, and the number of associated initial claims increased by 8,562 to 175,419. The largest over-the-year increases in initial claims were reported in primary metal manufacturing (+2,673), machinery manufacturing (+2,278), and administrative and support services (+1,617). The largest over-the-year decreases in mass layoff initial claims were reported in transportation equipment manufacturing (-2,313) and in agriculture and forestry support activities (-1,368).

Geographic Distribution (Not Seasonally Adjusted)

Among the four census regions, the highest number of initial claims in July due to mass layoffs was in the Midwest, with 85,557. Transportation equipment manufacturing accounted for 47 percent of all mass layoff initial claims in that region during the month. In each July of the years 2002-2006, between 40 and 51 percent of all mass layoff initial claims in the Midwest were due to layoffs in transportation equipment manufacturing. In July 2007, the South had the second largest number of initial claims among the regions with 35,763, followed by the West with 33,064 and the Northeast with 21,035.

The number of initial claimants in mass layoffs increased over the year in three of the four regions. The largest increase was in the South
(+4,897), followed by the Northeast (+3,992). The Midwest (-1,229) reported the only over-the-year decrease in initial claims. Six of the 9 geographic divisions had over-the-year increases in the numbers of initial claims associated with mass layoffs, with the largest increases in the East South Central (+5,533), West North Central (+3,418), and Mountain (+2,374) divisions. The division with the largest over-the-year decrease was the East North Central (-4,647).

Reflecting transportation equipment manufacturing layoffs, Michigan recorded the highest number of initial claims filed due to mass layoff events in July (36,356). Other states with large numbers of mass layoffrelated claims were California (25,054), Ohio (10,435), Wisconsin (9,712), and Illinois (8,175). These five states accounted for 49 percent of all mass layoff events and 51 percent of all initial claims for unemployment insurance in July.

Alabama had the largest over-the-year increase in the number of initial claims (+5,000); this was partially due to more mass layoff activity in
transportation equipment manufacturing. States having the next largest increases in initial claims were New York (+3,338), South Carolina (+1,951), Wisconsin (+1,818), and Massachusetts (+1,732). The largest over-the-year decreases in claims occurred in Michigan (-5,366), Indiana (- 2,268), andLouisiana (-2,025).