March layoff events and associated initial claimants were the highest for the month of March since 2003. The number of mass layoff events in March 2008 decreased by 101 from the prior month, while the number of associated initial claims decreased by 20,218. However, the seasonally adjusted figures for February 2008 mass layoff events and initial claims were inflated due to an unusual calendar effect. In March, 482 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 64,088 initial claims. Over the month, mass layoff activity in manufac- turing decreased by 47 events, and initial claims decreased by 2,825.
The national unemployment rate was 5.1 percent in March, seasonally adjusted, up from 4.8 percent in the prior month and from 4.4 percent a year earlier. Total nonfarm payroll employment decreased by 80,000 in March from the previous month, but increased by 536,000 from a year earlier.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in March 2008 was 1,089 on a not sea- sonally adjusted basis; the number of associated initial claims was 114,541. The average weekly number of events in March 2008 was 272 compared with 216 in March 2007. The average weekly initial claimants in- creased from 24,795 to 28,635. The weekly average number of events reached the highest level for the month of March since 2003, while the weekly average number of initial claims reached its highest level for the month since 2002. (The weekly averages of events and claims are calculated by dividing the total events and claims for the month by the number of weeks in the month - 4 in March 2008 versus 5 in March 2007.
The largest over-the-year increases in March 2008 average weekly initial claims associated with mass layoffs occurred in transit and ground passenger transportation (+1,275), food manufacturing (+709), and food services and drinking places (+350). The largest decreases occurred in administrative and support services (-502), transportation equipment manufacturing (-300), and computer and electronic products manufacturing (-283).
The manufacturing sector accounted for 31 percent of all mass layoff events and 38 percent of all related initial claims filed in March; a year earlier, manufacturing made up 34 percent of events and 40 percent of in- itial claims. In March 2008, the number of manufacturing claimants was highest in transportation equipment manufacturing (14,318, largely in light truck and utility vehicle manufacturing), followed by food manufacturing (7,705, mainly in frozen fruit and vegetable manufacturing).
Transportation and warehousing accounted for 8 percent of mass layoff events and 9 percent of initial claims in March, primarily from school and employee bus transportation. Accommodation and food services comprised 8 percent of events and 9 percent of initial claims, primarily from food service contractors. Administrative and waste services made up 12 percent of all mass layoff events and 9 percent of associated initial claims, mainly from temporary help services.
The 10 industries reporting the highest numbers of mass layoff initial claims, not seasonally adjusted, accounted for 34 percent of all such claims in March. The industry with the highest number of initial claims was school and employee bus transportation with 8,073, followed by food service contractors (6,504), temporary help services (5,056), and motion picture and video production (3,324).
Geographic Distribution (Not Seasonally Adjusted)
Among the four census regions, the highest number of initial claims in March due to mass layoffs was in the Midwest, 34,885. Transportation equip- ment manufacturing accounted for 31 percent of all mass layoff initial claims in that region during the month. The West had the second largest number of initial claims among the regions, 30,357, followed by the South with 28,097 and the Northeast with 21,202.
Three of the 4 regions experienced over-the-year increases in average weekly initial claims--the Northeast (+2,378), the Midwest (+2,039), and the South (+62). Six of the 9 divisions had over-the-year increases in average weekly initial claims, led by the Middle Atlantic (+2,454).
California recorded the highest number of initial claims filed due to mass layoff events in March (21,812), followed by Pennsylvania (12,745), Wisconsin (7,067), Illinois (6,694), and Ohio (6,236). These five states accounted for 51 percent of all mass layoff events and 42 percent of all initial claims for unemployment insurance in March.
Thirty states reported over-the-year increases in average weekly initial claims associated with mass layoffs, led by Pennsylvania (+2,227), Ohio (+670), and Wisconsin (+650). For Pennsylvania, the largest increase in initial claims occurred in food manufacturing. States with the largest over-the-year decreases in average weekly claims were California (-1,181), Mississippi (-762), and North Carolina (-455).
