News Markets Media

USA | Europe | Asia | World| Stocks | Commodities

Home News USA US Mass Layoffs in October 2008


US Mass Layoffs in October 2008
added: 2008-11-24

In October, employers took 2,140 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 232,468, on a seasonally adjusted basis. The number of mass layoff events this October decreased by 129 from the prior month, and the number of associated initial claims fell by 3,213. Both layoff events and initial claims reached their highest October levels since 2001, a month that experienced continued layoff activity from the September 11 attacks. In October, 635 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 87,403 initial claims. Over the month, mass layoff events in manufacturing increased by 32 and initial claims increased by 5,989; the third consecutive over-the-month increase for both.

From January through October 2008, the total number of events (seasonally adjusted), at 16,951, and initial claims (seasonally adjusted), at 1,742,914, were the highest for the January-October period since 2002.

The national unemployment rate was 6.5 percent in October, seasonally adjusted, up significantly from 6.1 percent the prior month and up from 4.8 percent a year earlier. In October, total nonfarm payroll employment decreased by 240,000 over the month and by 1,078,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in October was 2,125 on a not seasonally adjusted basis; the number of associated initial claims was 221,784. Average weekly layoff events rose from 271 in October 2007 to 425 in October 2008, while average weekly initial claimants increased from 27,114 to 44,357. In 2008, both average weekly events and initial claimants reached their highest October levels since 2001. In 2008, two major sectors reported program highs in terms of average weekly initial claimants for the month of October--the construction sector and the arts, entertainment, and recreation sector (with data available back to 1995).

The manufacturing sector accounted for 32 percent of all mass layoff events and 45 percent of initial claims filed in October 2008; a year earlier, manufacturing made up 31 percent of events and 47 percent of initial claims. This October, the number of manufacturing claimants was greatest in transportation equipment manufacturing (36,110), followed by food manufacturing (11,144). Administrative and waste services accounted for 16 percent of mass layoff events and 14 percent of associated initial claims during the month.

The six-digit NAICS industry with the largest number of initial claims was temporary help services (16,381), followed by automobile manufacturing (10,508). Among the 10 industries with the highest levels of initial claims, 3 of the 10--automobile manufacturing, travel trailer and camper manufacturing, and professional employer organizations - reached program highs in 2008 for the month of October (with data available back to 1995).

Geographic Distribution (Not Seasonally Adjusted)

Of the 4 census regions, the Midwest had the highest number of initial claims in October due to mass layoffs (75,210), followed by the West (69,542) and the South (53,087). Average weekly initial claimants in mass layoffs increased over the year in all 4 regions with the West (+5,341) and the Midwest (+5,329) experiencing the largest increases.

Of the 9 divisions, the Pacific (60,351) and the East North Central (60,196) had the highest numbers of initial claims in October due to mass layoffs. All 9 of the divisions experienced over the-year increases in average weekly initial claims, led by the Pacific (+4,229) and the East North Central (+3,829). In 2008, the East South Central and Mountain divisions reached program highs in average weekly initial claims for the month of October.

California recorded the highest number of initial claims filed due to mass layoff events in October with 51,286. The next highest states reporting mass layoff initial claims were Ohio (17,764) and Michigan (16,851). Twelve states reached program highs in average weekly initial claims in 2008 for the month of October - Alabama, Alaska, Florida, Georgia, Idaho, Indiana, Michigan, Nebraska, Nevada, Ohio, Utah, and Wyoming. Forty-four states registered over-the-year increases in average weekly initial claims associated with mass layoffs, led by California (+3,256), Michigan (+2,073), and Florida (+1,319).


Source: U.S. Department of Labor

Privacy policy . Copyright . Contact .