In June, employers took 1,643 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 165,697, on a seasonally adjusted basis.

Layoff events were the highest for the month of June since 2003, and associated initial claimants reached its highest level since 2002. The number of mass layoff events this June increased by 17 from the prior month, while the number of associated initial claims was 5,690 lower. In June, 541 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 76,514 initial claims. Both measures were at their highest monthly levels since August 2003. Over the month, mass layoff events in manufacturing increased by 13 and initial claims increased by 4,456.

From January through June 2008, the total number of events (seasonally adjusted), at 9,258, and initial claims (seasonally adjusted), at 949,639, were considerably higher than in January-June 2007 (7,563 and 780,463, respectively).

The national unemployment rate was 5.5 percent in June, seasonally adjusted, unchanged from the prior month and up from 4.6 percent a year earlier. Total nonfarm payroll employment decreased by 62,000 in June from the previous month but increased by 15,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in June was 1,622 on a not seasonally adjusted basis; the number of associated initial claims was 166,742. Average weekly layoff events rose from 320 in June 2007 to 406 in June 2008, while average weekly initial claimants increased from 34,562 to 41,686. In 2008, average weekly initial claimants reached its highest level for the month of June since 2001.

The largest over-the-year increase in June 2008 average weekly initial claims associated with private nonfarm mass layoffs occurred in transportation equipment manufacturing (+2,512), followed by administrative and support services (+974) and general merchandise stores (+830). The largest decreases occurred in food services and drinking places (-457) and in membership associations and organizations (-326).

The manufacturing sector accounted for 19 percent of all mass layoff events and 25 percent of initial claims filed in June; a year earlier, manufacturing made up 20 percent of events and 21 percent of initial claims. In June 2008, the number of manufacturing claimants was highest in transportation equipment manufacturing (17,597) and food manufacturing (6,065). Government accounted for 16 percent of mass layoff events and 13 percent of associated initial claims in June, primarily from educational services.

The six-digit NAICS industry with the highest number of initial claims was school and employee bus transportation with 17,059, followed by elementary and secondary schools (15,292). Among the 10 industries with the highest levels of initial claims, 2 of the 10--heavy duty truck manufacturing and discount department stores--reached program highs in 2008 for the month of June (with data available back to 1995).

Geographic Distribution (Not Seasonally Adjusted)

Of the 4 census regions, the highest number of initial claims in June due to mass layoffs was in the West (56,177). The Midwest had the second largest number of initial claims among the regions (39,391), followed by the South with 38,453 and the Northeast with 32,721. All 4 regions experienced over-the-year increases in average weekly initial claims--the West (+3,675), the South (+1,688), the Midwest (+907), and the Northeast (+854). All 9 of the divisions had over-the-year increases in average weekly initial claims, led by the Pacific (+3,578).

California recorded the highest number of initial claims filed due to mass layoff events in June with 44,754, largely due to layoffs in educational services and in administrative and support services. The states reporting the next highest number of mass layoff initial claims were Pennsylvania (14,835), Florida (10,751), and New Jersey (9,512).

Twenty-eight states and the District of Columbia reported over-the-year increases in average weekly initial claims associated with mass layoffs, led by California (+3,022) and Pennsylvania (+1,109). States with the largest over-the-year decreases in average weekly claims were Illinois (-439) and New York (-302). In 2008, six states reported program highs in terms of average weekly initial claims for the month of June (with data available back to 1995)--Florida, Iowa, Kentucky, Oregon, Pennsylvania, and Vermont.