In July, employers took 1,512 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 employer; the number of workers involved totaled 151,171, on a seasonally adjusted basis. The number of mass layoff events this July decreased by 131 from the prior month, while the number of associated initial claims decreased by 14,526. In July, 443 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 57,470 initial claims.

Over the month, mass layoff events in manufacturing decreased by 98 and initial claims decreased by 19,044. From January through July 2008, the total number of mass layoff events (seasonally adjusted), at 10,770, and initial claims (seasonally adjusted), at 1,100,810, were the highest for the January-July period since 2003.

The national unemployment rate was 5.7 percent in July, seasonally adjusted, up from 5.5 percent in the prior month and up from 4.6 percent a year earlier. Total nonfarm payroll employment decreased by 51,000 in July from the previous month and decreased by 67,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in July was 1,891 on a not seasonally adjusted basis; the number of associated initial claims was 200,382. Over the year, there were increases in both the number of layoff events (+292) and initial claims (+24,963). The largest over-the-year increases in initial claims occurred in transportation equipment manufacturing (+8,966) and administrative and support services (+5,174). The largest decreases occurred in machinery manufacturing (-1,952) and primary metal manufacturing (-1,712).

The manufacturing sector accounted for 40 percent of all mass layoff events and 54 percent of initial claims filed in July; a year earlier, manufacturing made up 43 percent of the events and 58 percent of initial claims. In July 2008, the number of manufacturing claimants was highest in transportation equipment manufacturing (57,761), followed by fabricated metal products (7,007). Administrative and waste services accounted for 14 percent of mass layoff events and 11 percent of associated initial claims in July, primarily from temporary help services.

The six-digit NAICS industry with the highest number of initial claims was temporary help services with 14,068, followed by light truck and utility vehicle manufacturing with 8,825. Among the industries with the highest levels of initial claims, heavy duty truck manufacturing reached a program high for the month of July.

Geographic Distribution (Not Seasonally Adjusted)

Of the 4 census regions, the highest number of initial claims in July due to mass layoffs was in the Midwest (84,535). The South had the second largest number of initial claims among the regions with 48,440, followed by the West with 41,901 and the Northeast with 25,506.

The number of initial claimants in mass layoffs increased over the year in 3 of the 4 regions--the South (+12,677), the West (+8,837), and the Northeast (+4,471). Six of the 9 divisions had over-the-year increases in initial claims, with the largest increase in the Pacific (+9,016).

California recorded the highest number of initial claims filed due to mass layoff events in July with 33,250, largely due to layoffs in administrative and support services and in educational services. (See table 6.) The next highest numbers of mass layoff initial claims were in Michigan (27,672), Ohio (19,402), and Kentucky (11,907).

Twenty-nine states reported over-the-year increases in initial claims associated with mass layoffs, led by Ohio (+8,967), California (+8,196), and Kentucky (+5,949). States with the largest over-the-year decreases in claims were Michigan (-8,684) and Kansas and Iowa (-1,563 each).