Technical information: (202) 691-6392 USDL 08-0557
http://www.bls.gov/mls/
For release: 10:00 A.M. (EDT)
Media contact: (202) 691-5902 Wednesday, April 23, 2008
MASS LAYOFFS IN MARCH 2008
In March, employers took 1,571 mass layoff actions, seasonally ad-
justed, 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 today. Each action involved at least 50 persons from
a single employer; the number of workers involved totaled 157,156, on a
seasonally adjusted basis. 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. (See the
box note on page 3 of this news release.) 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.
(See table 1.)
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.
(See table 2.) 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.)
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Table A. Industries with the largest number of mass layoff initial claims
in March 2008
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| | March peak
Industry |Initial |----------------------
| claims | |
| | Year |Initial claims
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| | |
School and employee bus transportation ...| 8,073 | 2008 | 8,073
Food service contractors .................| 6,504 | 2007 | 7,636
Temporary help services ..................| 5,056 | 2002 | 14,338
Motion picture and video production ......| 3,324 | 2005 | 7,192
Light truck and utility vehicle | | |
manufacturing ...........................| 3,068 | 2008 | 3,068
Discount department stores ...............| 2,711 | 2007 | 3,670
Heavy duty truck manufacturing ...........| 2,683 | 1996 | 2,781
Automobile manufacturing .................| 2,599 | 1996 | 15,411
Professional employer organizations ......| 2,464 | 2002 | 2,987
Household refrigerator and home freezer | | |
manufacturing ...........................| (1) | 2001 | 2,279
| | |
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1 Data do not meet BLS or state agency disclosure standards.
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). (See table 3.)
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). (See table A.)
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. (See table 5.)
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).
- 3 -
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. (See table 6.)
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).
______________________________
The report on Extended Mass Layoffs in the First Quarter of 2008 is
scheduled to be released on Thursday, May 15. The report on Mass Layoffs
in April 2008 is scheduled to be released on Thursday, May 22.
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| |
| Calendar Effect on Over-the-Month Change |
| in Seasonally Adjusted Data |
| |
| |
| The Mass Layoff Statistics (MLS) monthly data can encompass |
| either 4 or 5 weeks of events and claims, based on where the |
| first day of the month falls. During months with 5 weeks, more |
| data are collected. The seasonal adjustment procedure typically |
| adjusts the data for differences in the number of weeks in a month. |
| This year, February was a 5-week month, an event that occurs once |
| every 28 years, and the seasonal adjustment program did not account |
| for this rare occurrence. Therefore, the seasonally adjusted data |
| reflect an exaggerated downward movement from February to March in |
| events and initial claims. See the Technical Note for more infor- |
| mation on the seasonal adjustment of MLS data. |
| |
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