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US Mass Layoffs in May 2009
added: 2009-06-24

Employers took 2,933 mass layoff actions in May that resulted in the separation of 312,880 workers, 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 mass layoff events in May increased by 221 from the prior month, and the number of associated initial claims increased by 41,654. Over the year, the number of mass layoff events increased by 1,232 and associated initial claims increased by 132,322. Initial claims rose to its highest level on record, while events matched the peak level from March 2009, with data available back to 1995. In May, 1,331 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 165,802 initial claims. Over the year, manufacturing events and initial claims more than doubled.

During the 18 months from December 2007 through May 2009, the total number of mass layoff events (seasonally adjusted) was 37,059, and thenumber of initial claims (seasonally adjusted) was 3,811,307. (December 2007 was the start of a recession as designated by the National Bureau of Economic Research.)

The national unemployment rate was 9.4 percent in May 2009, seasonally adjusted, up from 8.9 percent the prior month and from 5.5 percent a year earlier. In May, total nonfarm payroll employment decreased by 345,000 over the month and by 5,366,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in May was 2,738, and the number of associated initial claims was 289,628. Over the year, increases were recorded in both the number of mass layoff events (+1,186) and initial claims (+130,157). This year, both average weekly events and initial claimants reached their highest May levels in program history; data are available back to 1995. Eleven of the 19 major industry sectors reported program highs in terms of average weekly initial claimants for the month of May-mining; construction; manufacturing; wholesale trade; retail trade; finance and insurance; real estate and rental and leasing; management of companies and enterprises; administrative and waste services; health care and social assistance; and accommodation and food services. Government also reported a program high in terms of average weekly initial claimants for the month of May.

The manufacturing sector accounted for 37 percent of all mass layoff events and 43 percent of initial claims filed in May 2009; a year earlier,
manufacturing made up 25 percent of events and 32 percent of initial claims. This May, the number of manufacturing claimants was greatest in transportation equipment (46,816) and machinery (12,472). The administrative and waste services sector accounted for 11 percent of mass layoff events and associated initial claims during the month.

Of the 10 detailed industries with the largest number of mass layoff initial claims, 7 reached their May peak: automobile manufacturing; light truck and utility vehicle manufacturing; motor vehicle power train components manufacturing; all other motor vehicle partsmanufacturing; department stores, except discount; professional employer organizations; and food service contractors. The industry with the largest number of initial claims was temporary help services (16,658).

Geographic Distribution (Not Seasonally Adjusted)

Of the 4 census regions, the Midwest registered the highest number of initial claims in May due to mass layoffs (105,264), followed by the South (72,375) and the West (70,576). Initial claims associated with mass layoffs increased over the year in all 4 regions, with the Midwest (+59,802) and the South (+29,543) experiencing the largest increases. In 2009, all regions except the West reported their highest May levels of average weekly initial claims in program history.

Of the 9 geographic divisions, the East North Central (84,281) had the highest number of initial claims due to mass layoffs in May, followed by the Pacific (57,286) and the Middle Atlantic (35,548). All divisions experienced over-the-year increases in initial claims, led by the
East North Central (+47,949), the South Atlantic (+18,356), and the Pacific (+17,276). This year, 6 of the 9 divisions - all except New England, West South Central, and Pacific - reached May program highs in terms of average weekly initial claims.

California recorded the highest number of initial claims filed due to mass layoff events in May with 47,091. The states with the next highest
number of mass layoff initial claims were Michigan (26,344), Pennsylvania (20,392), and Illinois (19,717). Forty-four states and the District of Columbia registered over-the-year increases in initial claims associated with mass layoffs, led by Michigan (+18,205), California (+13,006), Illinois (+11,659), and Pennsylvania (+11,417). In 2009, 30 states reached program highs in average weekly initial claims for the month of May - Alaska, Arizona, Arkansas, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Tennessee, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.


Source: U.S. Department of Labor

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