For release 10:00 a.m. (EST) Wednesday, November 9, 2011 USDL-11-1611
Technical information: (202) 691-6392 * mlsinfo@bls.gov * www.bls.gov/mls
Media contact: (202) 691-5902 * PressOffice@bls.gov
EXTENDED MASS LAYOFFS -- THIRD QUARTER 2011
Employers in the private nonfarm sector initiated 1,226 mass layoff events in the third
quarter of 2011 that resulted in the separation of 184,493 workers from their jobs for
at least 31 days, the U.S. Bureau of Labor Statistics reported today. Total extended
mass layoff events decreased over the year from 1,370 to 1,226, and associated worker
separations fell from 222,357 to 184,493. Events and separations reached their lowest
third quarter levels since 2007. Both events and separations have decreased over the
year for eight consecutive quarters. (See table A.) Third quarter 2011 layoff data are
preliminary and are subject to revision. (See the Technical Note.)
Both events and separations in the manufacturing sector declined to series’ lows during
the third quarter of 2011. Fifty percent of private nonfarm employers indicated they
anticipated some type of recall, up from 45 percent a year earlier.
The national unemployment rate averaged 9.1 percent, not seasonally adjusted, in the
third quarter of 2011, down from 9.5 percent a year earlier. Private nonfarm payroll
employment, not seasonally adjusted, increased by 1.7 percent (1,826,000) over the
year.
Industry Distribution of Extended Layoffs
Over the year ending in the third quarter of 2011, the number of extended mass
layoff events declined in 13 of the 18 major private nonfarm industry sectors. The
transportation and warehousing and the accommodation and food services sectors
experienced the largest declines in the numbers of worker separations over the year.
Eight of the 21 manufacturing subsectors experienced over-the-year decreases in
the number of layoff events. (See table 1.)
Both events and separations in the manufacturing sector were at series’ lows in the
third quarter of 2011. Thirty-eight percent of manufacturing employers with an extended
mass layoff event in the third quarter of 2011 anticipated recalling at least some of
the displaced workers.
Administrative and waste service firms had 198 extended mass layoff events and 33,584
separations, primarily due to contract completion. This sector accounted for 16 percent
of the layoff events and 18 percent of the related separations in the third quarter. In
these events, 55 percent of the employers anticipated recalling at least some of the
displaced workers.
Table A. Selected measures of extended mass layoff activity
Period Layoff events Separations Initial claimants
2007
January-March .......... 1,110 225,600 199,250
April-June ............. 1,421 278,719 259,234
July-September ......... 1,018 160,024 173,077
October-December ....... 1,814 301,592 347,151
2008
January-March .......... 1,340 230,098 259,292
April-June ............. 1,756 354,713 339,630
July-September ......... 1,581 290,453 304,340
October-December ....... 3,582 641,714 766,780
2009
January-March .......... 3,979 705,141 835,551
April-June ............. 3,395 651,318 731,049
July-September ......... 2,034 345,531 406,823
October-December ....... 2,416 406,212 468,577
2010
January-March .......... 1,870 314,512 368,664
April-June ............. 2,008 381,622 396,441
July-September (r) ..... 1,370 222,357 260,077
October-December (r) ... 1,999 338,643 390,575
2011
January-March (r) ...... 1,490 225,456 258,134
April-June (r) ......... 1,810 317,422 341,245
July-September (p) ..... 1,226 184,493 181,777
r = revised.
p = preliminary.
Reasons for Extended Layoffs
Business demand factors accounted for 47 percent of the events and related separations
in the private nonfarm sector during the third quarter of 2011, primarily as a result
of contract completion. Layoffs due to the completion of seasonal work accounted for
23 percent of extended mass layoff events and 21 percent of related separations during
the quarter. Over the year, the largest decrease in worker separations occurred in
layoffs attributed to seasonal factors. (See table 2.)
Movement of Work
In the third quarter of 2011, 35 extended mass layoffs involved movement of work and
were associated with 6,216 worker separations, a series low for both figures. Over
the year, the number of such events decreased by 16, and the number of separations
decreased by 1,337. Movement of work layoffs accounted for 4 percent of total
nonseasonal events during the quarter. (See table 9.)
Table B. Metropolitan areas with the largest number of initial claimants associated with
extended mass layoff events in the third quarter 2011, by residency of claimants
2010 III (r) 2011 III (p)
Metropolitan area Initial Initial
claimants Rank claimants Rank
Total, 372 metropolitan areas ........ 222,829 --- 157,035 ---
Los Angeles-Long Beach-Santa Ana, Calif. ..... 37,587 1 38,676 1
New York-Northern New Jersey-Long
Island, N.Y.-N.J.-Pa. .................... 35,827 2 12,704 2
Riverside-San Bernardino-Ontario, Calif. ..... 10,865 3 8,645 3
San Francisco-Oakland-Fremont, Calif. ........ 9,408 4 6,877 4
San Diego-Carlsbad-San Marcos, Calif. ........ 6,879 6 5,244 5
Chicago-Joliet-Naperville, Ill.-Ind.-Wis. .... 7,010 5 4,985 6
San Jose-Sunnyvale-Santa Clara, Calif. ....... 3,881 9 3,151 7
Sacramento--Arden-Arcade--Roseville, Calif. .. 4,346 7 2,546 8
Oxnard-Thousand Oaks-Ventura, Calif. ......... 1,887 18 2,300 9
Philadelphia-Camden-Wilmington, Pa.- N.J.-
Del.-Md. ................................. 3,757 10 2,203 10
r = revised.
p = preliminary.
NOTE: The geographic boundaries of the metropolitan areas shown in this table are
defined in Office of Management and Budget Bulletin 10-02, December 1, 2009.
Fifty-seven percent of the events related to movement of work were from manufacturing
industries. (See table 6.) Employers cited organizational changes as the economic
reason for layoff in 31 percent of the events involving movement of work. (See
table 7.) Among workers affected by the movement of work, the largest proportion was
in the South. (See table 8.)
The 35 events with movement of work for the third quarter involved 49 identifiable
relocations of work actions. (See table 9.) Employers were able to provide information
on the specific number of worker separations for 28 of these actions. Among these
actions, 93 percent were domestic reassignments, and 82 percent involved work moving
within the same company. (See table 10.)
Recall Expectations
Fifty percent of the private nonfarm employers reporting an extended mass layoff in
the third quarter of 2011 indicated they anticipated some type of recall, up from 45
percent a year earlier. Of those employers expecting to recall workers, 29 percent
indicated the offer would be extended to all displaced employees, and 61 percent of
employers anticipated extending the offer to at least half of the workers--both
percentages reached third quarter series’ lows. Among employers expecting to recall
laid-off workers, a series low 58 percent intend to do so within 6 months. Excluding
extended mass layoff events due to seasonal work and vacation period, in which 98 percent
of the employers expected a recall, employers anticipated recalling laid-off workers in
36 percent of the events. (See table 11.)
Size of Extended Layoffs
The average size of a layoff (as measured by the number of separations per layoff
event) was 150 workers during the third quarter of 2011. (See table 12.) Events were
largely concentrated at the lower end of the extended layoff-size spectrum, with 73
percent involving fewer than 150 workers. Conversely, only 4 percent of layoff events
involved 500 or more workers. (See table 13.)
Initial Claimant Characteristics
A total of 181,777 initial claimants for unemployment insurance were associated with
extended mass layoffs in the third quarter. Of these claimants, 15 percent were black,
22 percent were Hispanic, 41 percent were women, and 19 percent were 55 years of age
or older. (See table 3.) In the entire civilian labor force for the same period, 12
percent of all persons were black, 15 percent were Hispanic, 47 percent were women, and
20 percent were 55 years of age or older.
Geographic Distribution
Among the four census regions, the West recorded the highest number of separations due
to extended mass layoff events in the third quarter of 2011. Among the nine census
divisions, the highest numbers of displaced workers were in the Pacific. Three of the
4 regions and 8 of the 9 divisions registered fewer laid-off workers compared with the
third quarter of 2010. (See table 4.)
California recorded the largest number of worker separations in the third quarter of
2011, followed by New York and Illinois. Over the year, 28 states reported decreased
numbers of separated workers associated with extended mass layoff events during the
third quarter, led by New York and Florida. New York accounted for 53 percent of the
total over-the-year decline in worker separations. (See table 5.)
Eighty-six percent of the initial claimants for unemployment insurance associated with
extended mass layoff events in the third quarter of 2011 resided within metropolitan
areas. Among the 372 metropolitan areas, Los Angeles-Long Beach-Santa Ana, Calif.,
reported the highest number of resident initial claimants. New York-Northern New Jersey-
Long Island, N.Y.-N.J.-Pa., accounted for 35 percent of the total over-the-year decline
in metropolitan area resident initial claims. Oxnard-Thousand Oaks-Ventura, Calif., entered
into the highest 10 metropolitan areas in terms of initial claims by residency of claimant
during the quarter, replacing Miami-Fort Lauderdale-Pompano Beach, Fla., from the previous
year. (See table B.)
Note
The quarterly series on extended mass layoffs cover layoffs of at least 31-days duration
that involve 50 or more individuals from a single employer filing initial claims for
unemployment insurance during a consecutive 5-week period. Approximately 30 days after a
mass layoff is triggered, the employer is contacted for additional information. Data for
the current quarter are preliminary and subject to revision. This release also includes
revised data for previous quarters. Data are not seasonally adjusted, but survey data
suggest that there is a seasonal pattern to layoffs. Thus, comparisons between consecutive
quarters should not be used as an indicator of trend. For additional information about the
program, see the Technical Note.
________________
The Mass Layoffs news release for October is scheduled to be released on Tuesday,
November 22, 2011, at 10:00 a.m. (EST).
