Mass layoffs numbers for January released; up by 11k from December

Press release from the issuing company

Wednesday, February 23rd, 2011

Employers took 1,534 mass layoff actions in January involving 149,799 workers, sea- sonally adjusted, as measured by new filings for unemployment insurance benefits dur- ing the month, the U.S. Bureau of Labor Statistics reported today. Each mass layoff event involved at least 50 workers from a single employer. The number of mass layoff events in January increased by 51 from December, and the number of associated initial claims increased by 11,807. In January, 341 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 39,189 initial claims; both figures increased over the month. (See table 1.)

The national unemployment rate was 9.0 percent in January, down from 9.4 percent the prior month and 9.7 percent a year earlier. In January, total nonfarm payroll employment increased by 36,000 over the month and by 984,000 from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in January was 2,558 on a not seasonally adjusted basis; the number of associated initial claims was 246,463. (See table 2.) The num- ber of mass layoff events was down by 302 from January 2010, and associated initial claims decreased by 32,216. Eleven of the 19 major industry sectors in the private economy reported over-the-year declines in initial claims, with manufacturing hav- ing the largest decrease. The six-digit industry with the largest number of initial claims in January 2011 was temporary help services. (See table A. The table in- cludes both publicly and privately owned entities.)

The manufacturing sector accounted for 27 percent of all mass layoff events and 30 percent of initial claims filed in January. A year earlier, manufacturing made up 34 percent of events and 38 percent of initial claims. Within manufacturing, the number of claimants in January was greatest in transportation equipment and in food. (See table 3.) Eighteen of the 21 manufacturing subsectors experienced over- the-year decreases in initial claims, with the largest declines in machinery and fabricated metal products.



Table A. Industries with the largest number of mass layoff initial claims in January 2011, not seasonally adjusted


January peak
Industry Initial Year Initial
claims claims

Temporary help services (1) .................. 20,948 1998 26,224
School and employee bus transportation ....... 14,754 2010 15,131
Discount department stores ................... 6,722 2010 8,065
Motion picture and video production .......... 5,818 1998 12,038
Highway, street, and bridge construction ..... 5,310 2000 9,680
Professional employer organizations (1) ...... 5,063 2009 11,345
Automobile manufacturing ..................... 4,503 2001 21,093
Hotels and motels, except casino hotels ...... 3,593 2009 6,592
Warehouse clubs and supercenters ............. 3,508 2011 3,508
Food service contractors ..................... 3,439 2011 3,439

1 See the Technical Note for more information on these industries.



Geographic Distribution (Not Seasonally Adjusted)

Three of the 4 regions and 7 of the 9 divisions experienced over-the-year decreases in initial claims due to mass layoffs in January. Among the census regions, the Midwest registered the largest over-the-year decrease in initial claims. Of the geo- graphic divisions, the East North Central had the largest over-the-year decline in initial claims. (See table 5.)

California recorded the highest number of initial claims in January, followed by New York and Pennsylvania. Thirty-two states experienced over-the-year decreases in initial claims, led by Michigan, Ohio, and Illinois. (See table 6.)

Note

The monthly data series in this release cover mass layoffs of 50 or more workers be- ginning in a given month, regardless of the duration of the layoffs. For private non- farm establishments, information on the length of the layoff is obtained later and issued in a quarterly release that reports on mass layoffs lasting more than 30 days (referred to as "extended mass layoffs"). The quarterly release provides more information on the industry classification and location of the establishment and on the demographics of the laid-off workers. Because monthly figures include short-term lay- offs of 30 days or less, the sum of the figures for the 3 months in a quarter will be higher than the quarterly figure for mass layoffs of more than 30 days. (See table 4.) See the Technical Note for more detailed definitions.