Manufacturing accounts for 42% of Feb. mass layoffs

Employers took 2,769 mass layoff actions in February that resulted in the separation of 295,477 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Department of Labor’s Bureau of Labor Statistics reported on March 20. Each action involved at least 50 persons from a single employer.

The number of mass layoff events in February increased by 542 from the prior month, while the number of associated initial claims increased by 57,575. Over the year, the number of mass layoff events increased by 1,100, and the associated initial claims increased by 112,439. In February, 1,235 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 152,618 initial claims. Over the month, mass layoff events in manufacturing increased by 497, and initial claims increased by 50,041. Layoff events for all industries and for the manufacturing sector rose to their highest levels on record, with data available back to 1995.

During the 15 months from December 2007 through February 2009, the total number of mass layoff events (seasonally adjusted) was 28,481, and the number of initial claims (seasonally adjusted) was 2,927,813. (December 2007 was the start of a recession as designated by the National Bureau of Economic Research.)

The national unemployment rate was 8.1 percent in February 2009, seasonally adjusted, up from 7.6 percent the prior month and from 4.8 percent a year earlier. In February, total non-farm payroll employment  decreased by 651,000 over the month and by 4,168,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in February was 2,262 on a not seasonally adjusted basis; the number of associated initial claims was 218,438. Average weekly layoff events rose from 254 in February 2008 to 566 in February 2009, and average weekly initial claimants increased from 23,902 to 54,610. (Average weekly analysis mitigates the effect of differing lengths of months.) This year, both average weekly events and initial claimants reached their highest February levels in program history; data are available back to 1996. Thirteen of the 19 major industry sectors reported program highs in terms of average weekly initial claimants for the month of February – mining; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; finance and insurance; real estate and rental and leasing; professional and technical services; management of companies and enterprises; educational services; accommodation and food services; and other services, except public administration.

The manufacturing sector accounted for 42 percent of all mass layoff events and 47 percent of initial claims filed in February 2009; a year earlier, manufacturing made up 28 percent of events and 36 percent of initial claims. This February, the number of manufacturing claimants was greatest in transportation equipment (22,440) and machinery (14,921). The administrative and waste services industry accounted for 10 percent of mass layoff events and 11 percent of associated initial claims during the month. The six-digit NAICS industry with the largest number of initial claims was temporary help services (12,477).

Geographic Distribution (Not Seasonally Adjusted)

Of the four census regions, the West registered the highest number of initial claims in February due to mass layoffs (65,792), followed by the Midwest (64,973), the South (55,542) and the Northeast (32,131). Average weekly initial claims associated with mass layoffs increased over the year in all four regions, with the Midwest (+11,055) and the West (+8,012) experiencing the largest increases. In 2009, the Northeast, Midwest, and South regions reported their highest February levels of average weekly initial claims in program history.

Of the nine geographic divisions, the Pacific (54,411) had the highest number of initial claims due to mass layoffs in February, followed by the East North Central (52,690) and the Middle Atlantic (24,387). All divisions experienced over-the-year increases in average weekly initial claims, led by the East North Central (+8,789) and the Pacific (+5,918). This year, eight of the nine divisions reached February program highs in terms of average weekly initial claims – New England, Middle Atlantic, East North Central, West North Central, South Atlantic, East South Central, West South Central and Mountain.

California recorded the highest number of initial claims filed due to mass layoff events in February with 45,557. The states with the next highest number of mass layoff initial claims were Illinois (19,469), Pennsylvania (11,683) and Wisconsin (9,988). In 2009, 30 states reached program highs in average weekly initial claims for the month of February – Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Missouri, Montana, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Vermont, West Virginia and Wisconsin. Forty-eight states and the District of Columbia registered over-the-year increases in average weekly initial claims associated with mass layoffs, led by California (+4,840), Illinois (+3,598) and Wisconsin (+1,878). Louisiana and Mississippi were the only states to experience over-the-year decreases.

Read the full report and view all of the data tables by clicking on the link below:

http://www.bls.gov/news.release/mmls.nr0.htm