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News
Bureau of Labor Statistics
United States
Department
of Labor
Washington, D.C. 20212
Technical information: (202) 691-6392 USDL 08-1185
http://www.bls.gov/mls/
For release: 10:00 A.M. (EDT)
Media contact: (202) 691-5902 Friday, August 22, 2008
MASS LAYOFFS IN JULY 2008
In July, employers took 1,512 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 today. Each action involved at least 50 persons from a single employer;
the number of workers involved totaled 151,171, on a seasonally adjusted basis. The number of mass
layoff events this July decreased by 131 from the prior month, while the number of associated initial
claims decreased by 14,526. In July, 443 mass layoff events were reported in the manufacturing sector,
seasonally adjusted, resulting in 57,470 initial claims. Over the month, mass layoff events in manufac-
turing decreased by 98 and initial claims decreased by 19,044. (See table 1.)
Chart 1. Mass layoff events, seasonally adjusted, Chart 2. Mass layoff initial claims, seasonally adjusted,
August 2003-July 2008 August 2003-July 2008
Events Claims
3,000 300,000
2,500 250,000
2,000 200,000
Total Total
1,500 150,000
1,000 100,000
Private nonfarm Private nonfarm Manufacturing
500 Manufacturing 50,000
0 0
2004 2005 2006 2007 2008 2004 2005 2006 2007 2008
From January through July 2008, the total number of mass layoff events (seasonally adjusted), at
10,770, and initial claims (seasonally adjusted), at 1,100,810, were the highest for the January-July
period since 2003.
The national unemployment rate was 5.7 percent in July, seasonally adjusted, up from 5.5 percent in
the prior month and up from 4.6 percent a year earlier. Total nonfarm payroll employment decreased by
51,000 in July from the previous month and decreased by 67,000 from a year earlier.
2
Table A. Industries with the largest number of mass layoff initial claims in July 2008
July peak
Industry Initial claims
Year Initial claims
Temporary help services ................................................................................................................................................
14,068 1998 24,601
Light truck and utility vehicle manufacturing ............................................................................................................................
8,825 1997 14,618
Motor vehicle metal stamping ................................................................................................................................................
7,033 2005 8,198
Heavy duty truck manufacturing ................................................................................................................................................
6,790 2008 6,790
Automobile manufacturing ................................................................................................................................................
6,636 1996 22,644
All other motor vehicle parts manufacturing .............................................................................................................................
5,986 2004 9,691
School and employee bus transportation ...................................................................................................................................
5,156 1997 8,081
Motor vehicle seating and interior trim mfg. .............................................................................................................................
4,459 2005 9,238
Elementary and secondary schools ............................................................................................................................................
4,172 2005 7,104
Professional employer organizations .........................................................................................................................................
3,949 2004 4,425
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in July was 1,891 on a not seasonally adjusted basis; the number
of associated initial claims was 200,382. (See table 2.) Over the year, there were increases in both the
number of layoff events (+292) and initial claims (+24,963). The largest over-the-year increases in
initial claims occurred in transportation equipment manufacturing (+8,966) and administrative and
support services (+5,174). The largest decreases occurred in machinery manufacturing (-1,952) and
primary metal manufacturing (-1,712).
The manufacturing sector accounted for 40 percent of all mass layoff events and 54 percent of
initial claims filed in July; a year earlier, manufacturing made up 43 percent of the events and 58 percent
of initial claims. In July 2008, the number of manufacturing claimants was highest in transportation
equipment manufacturing (57,761), followed by fabricated metal products (7,007). (See table 3.)
Administrative and waste services accounted for 14 percent of mass layoff events and 11 percent of
associated initial claims in July, primarily from temporary help services.
The six-digit NAICS industry with the highest number of initial claims was temporary help services
with 14,068, followed by light truck and utility vehicle manufacturing with 8,825. Among the industries
with the highest levels of initial claims, heavy duty truck manufacturing reached a program high for the
month of July (data are available back to 1995). (See table A.)
Geographic Distribution (Not Seasonally Adjusted)
Of the 4 census regions, the highest number of initial claims in July due to mass layoffs was in the
Midwest (84,535). The South had the second largest number of initial claims among the regions with
48,440, followed by the West with 41,901 and the Northeast with 25,506. (See table 5.)
The number of initial claimants in mass layoffs increased over the year in 3 of the 4 regions--the
South (+12,677), the West (+8,837), and the Northeast (+4,471). Six of the 9 divisions had over-the-
year increases in initial claims, with the largest increase in the Pacific (+9,016).
California recorded the highest number of initial claims filed due to mass layoff events in July with
33,250, largely due to layoffs in administrative and support services and in educational services. (See
3
table 6.) The next highest numbers of mass layoff initial claims were in Michigan (27,672), Ohio
(19,402), and Kentucky (11,907).
Twenty-nine states reported over-the-year increases in initial claims associated with mass layoffs,
led by Ohio (+8,967), California (+8,196), and Kentucky (+5,949). States with the largest over-the- year
decreases in claims were Michigan (-8,684) and Kansas and Iowa (-1,563 each).
___________________________
The report on Mass Layoffs in August 2008 is scheduled to be released on Tuesday, September 23.
Technical Note
The Mass Layoff Statistics (MLS) program is a federal- unemployment to initiate a request either for a determination
state program that uses a standardized automated approach to of entitlement to and eligibility for compensation, or for a
identifying, describing, and tracking the effects of major job subsequent period of unemployment within a benefit year or
cutbacks, using data from each state's unemployment period of eligibility.
insurance database. Each month, states report on employers Mass layoff event. Fifty or more initial claims for
which have at least 50 initial claims filed against them during unemployment insurance benefits filed against an employer
a consecutive 5 -week period. These employers then are during a 5-week period, regardless of duration.
contacted by the state agency to determine whether these
separations lasted 31 days or longer, and, if so, other Seasonal adjustment
information concerning the layoff is collected. States report Effective with the release of data for January 2005, BLS
on layoffs lasting more than 1 month on a quarterly basis. began publishing six seasonally adjusted monthly MLS
A given month contains an aggregation of the weekly series. The six series are the numb ers of mass layoff events
unemployment insurance claims filings for the Sunday and mass layoff initial claims for the total, private nonfarm,
through Saturday weeks in that month. All weeks are and manufacturing sectors.
included for the particular month, except if the first day of the Seasonal adjustment is the process of estimating and
month falls on Saturday. In this case, the week is included in removing the effect on time series data of regularly recurring
the prior month's tabulations. This means that some months seasonal events such as changes in the weather, holidays, and
will contain 4 weeks and others, 5 weeks, the number of the beginning and ending of the school year. The use of
weeks in a given month may be different from year to year, seasonal adjustment makes it easier to observe fundamental
and the number of weeks in a year may vary. Therefore, changes in time series, particularly those associated with
analysis of over-the-month and over-the-year change in not general economic expansions and contractions.
seasonally adjusted series should take this calendar effect into The MLS data are seasonally adjusted using the X-12-
consideration. ARIMA seasonal adjustment method on a concurrent basis.
The MLS program resumed operations in April 1995 Concurrent seasonal adjustment uses all available monthly
after it had been terminated in November 1992 due to lack of estimates, including those for the current month, in de-
funding. Prior to April 1995, monthly layoff statistics were veloping seasonal adjustment factors. Revisions to the most
not available. recent 5 years of seasonally adjusted data will be made once a
Information in this release will be made available to year with the issuance of December data. Before the data are
sensory impaired individuals upon request. Voice phone: seasonally adjusted, prior adjustments are made to the
(202) 691-5200; TDD message referral phone number: 1 - original data to adjust them for differences in the number of
800-877-8339. weeks used to calculate the monthly data. Because weekly
unemployment insurance claims are aggregated to form
Definitions monthly data, a particular month's value could be calculated
Employer. Employers in the MLS program include with 5 weeks of data in 1 year and 4 weeks in another. The
those covered by state unemployment insurance laws. effects of these differences could seriously distort the
Information on employers is obtained from the Quarterly seasonal factors if they were ignored in the seasonal
Census of Employment and Wages (QCEW) program, which adjustment process. These effects are modeled in the X-12-
is adminis tered by the Bureau of Labor Statistics (BLS). ARIMA program and are permanently removed from the
Initial claimant. A person who files any notice of un- final seasonally adjusted series.
Table 1. Mass layoff events and initial claimants for unemployment insurance, August 2004 to July 2008,
seasonally adjusted
Total Private nonfarm Manufacturing
Date
Initial Initial Initial
Events Events Events
claimants claimants claimants
2004
1,426 128,759 1,233 113,809 343
August ..................................................................................................................................................................... 36,539
1,285 127,833 1,154 116,843 336
September ..................................................................................................................................................................... 45,690
1,283 132,766 1,169 123,471 363
October ..................................................................................................................................................................... 47,046
1,320 130,873 1,174 119,029 380
November ..................................................................................................................................................................... 45,416
1,148 111,060 991 99,784 287
December ..................................................................................................................................................................... 31,935
2005
1,475 160,725 1,346 151,028 382
January ..................................................................................................................................................................... 61,324
1,146 121,455 1,020 110,480 353
February ..................................................................................................................................................................... 43,568
1,207 131,271 1,066 120,945 372
March ..................................................................................................................................................................... 53,673
1,252 136,752 1,125 126,550 401
April ..................................................................................................................................................................... 60,681
1,248 136,420 1,104 123,495
May .....................................................................................................................................................................398 54,999
1,196 127,084 1,078 118,012 368
June ..................................................................................................................................................................... 58,300
1,250 132,445 1,103 119,566 357
July ..................................................................................................................................................................... 46,602
1,144 125,686 1,000 113,762 341
August ..................................................................................................................................................................... 47,598
2,248 297,544 2,028 251,185 417
September ..................................................................................................................................................................... 55,304
1,101 110,035 982 100,934 321
October ..................................................................................................................................................................... 43,230
1,176 114,965 1,042 103,535 332
November ..................................................................................................................................................................... 42,071
1,261 134,461 1,132 123,418 360
December ..................................................................................................................................................................... 46,863
2006
1,107 110,800 988 101,494 283
January ..................................................................................................................................................................... 34,037
1,031 109,798 940 101,828 322
February ..................................................................................................................................................................... 43,147
1,084 119,049 983 110,668 323
March ..................................................................................................................................................................... 48,119
1,171 121,580 1,043 112,175 368
April ..................................................................................................................................................................... 49,568
1,124 117,115 1,005 107,181
May .....................................................................................................................................................................314 43,087
1,146 123,827 1,030 114,080 352
June ..................................................................................................................................................................... 44,869
1,179 121,017 1,051 111,336 372
July ..................................................................................................................................................................... 48,534
1,270 135,400 1,107 124,427 377
August ..................................................................................................................................................................... 60,906
1,173 123,767 1,056 114,677 385
September ..................................................................................................................................................................... 45,767
1,191 121,827 1,076 113,123 399
October ..................................................................................................................................................................... 53,601
1,232 133,803 1,121 124,559 414
November ..................................................................................................................................................................... 58,385
1,194 131,062 1,092 121,796 374
December ..................................................................................................................................................................... 51,408
2007
1,254 128,223 1,118 117,824 391
January ..................................................................................................................................................................... 52,858
1,352 143,837 1,238 135,066 416
February ..................................................................................................................................................................... 61,749
1,277 130,981 1,169 122,488 412
March ..................................................................................................................................................................... 52,606
1,243 126,977 1,116 116,926 382
April ..................................................................................................................................................................... 43,930
1,199 120,587 1,096 113,069
May .....................................................................................................................................................................370 48,910
1,238 129,858 1,116 120,165 351
June ..................................................................................................................................................................... 40,670
1,247 127,687 1,140 119,614 392
July ..................................................................................................................................................................... 51,333
1,228 121,886 1,128 114,628 335
August ..................................................................................................................................................................... 36,518
1,307 128,487 1,204 121,294 430
September ..................................................................................................................................................................... 53,432
1,347 136,124 1,224 127,163 430
October ..................................................................................................................................................................... 57,695
1,329 139,671 1,215 131,390 414
November ..................................................................................................................................................................... 56,965
1,433 141,750 1,315 133,024 462
December ..................................................................................................................................................................... 58,108
2008
1,438 144,111 1,317 134,347 427
January ..................................................................................................................................................................... 55,488
1,672 177,374 1,539 166,782 529
February ..................................................................................................................................................................... 66,913
1,571 157,156 1,460 147,537 482
March ..................................................................................................................................................................... 64,088
1,308 133,914 1,186 124,053 483
April ..................................................................................................................................................................... 60,552
1,626 171,387 1,496 161,912
May .....................................................................................................................................................................528 72,058
1,643 165,697 1,491 153,568 541
June ..................................................................................................................................................................... 76,514
1,512 151,171 1,368 140,116 443
July ..................................................................................................................................................................... 57,470
Table 2. Mass layoff events and initial claimants for unemployment insurance, August 2004 to July 2008,
not seasonally adjusted
Total Private nonfarm Manufacturing
Date
Initial Initial Initial
Events Events Events
claimants claimants claimants
2004
809 69,033 745 63,876 194
August ..................................................................................................................................................................... 17,698
708 68,972 637 63,102 189
September ..................................................................................................................................................................... 25,808
1,242 127,918 1,101 117,375 372
October ..................................................................................................................................................................... 48,265
1,399 130,423 1,201 115,549 412
November ..................................................................................................................................................................... 44,243
1,614 161,271 1,487 152,092 436
December ..................................................................................................................................................................... 50,726
2005
2,564 263,952 2,421 253,409 823
January ..................................................................................................................................................................... 108,985
810 74,644 722 68,372 230
February ..................................................................................................................................................................... 24,931
806 88,937 733 83,793 246
March ..................................................................................................................................................................... 33,030
1,373 158,582 1,263 148,133 395
April ..................................................................................................................................................................... 59,129
986 101,358 891 93,332
May .....................................................................................................................................................................249 30,424
1,157 120,463 941 103,307 216
June ..................................................................................................................................................................... 32,783
1,981 244,216 1,745 222,377 856
July ..................................................................................................................................................................... 136,210
645 67,582 598 63,484 188
August ..................................................................................................................................................................... 22,531
September ..................................................................................................................................................................... 47,497
1,662 213,281 1,505 179,042 318
905 91,941 757 80,694 249
October ..................................................................................................................................................................... 37,276
1,254 116,127 1,079 102,182 363
November ..................................................................................................................................................................... 41,442
2,323 254,258 2,168 242,753 706
December ..................................................................................................................................................................... 96,382
2006
1,245 117,946 1,123 108,701 331
January ..................................................................................................................................................................... 35,097
719 66,555 658 62,208 210
February ..................................................................................................................................................................... 24,892
921 111,838 856 106,177 285
March ..................................................................................................................................................................... 44,688
1,140 121,589 1,038 112,964 296
April ..................................................................................................................................................................... 39,538
872 84,809 794 78,663
May .....................................................................................................................................................................192 23,570
1,489 164,761 1,224 140,687 319
June ..................................................................................................................................................................... 41,095
1,511 166,857 1,335 154,342 648
July ..................................................................................................................................................................... 96,152
708 72,844 656 69,054 203
August ..................................................................................................................................................................... 28,494
September ..................................................................................................................................................................... 39,076
865 87,699 785 81,274 296
964 98,804 820 88,133 311
October ..................................................................................................................................................................... 46,737
1,315 136,186 1,172 125,009 455
November ..................................................................................................................................................................... 58,473
December ..................................................................................................................................................................... 105,462
2,249 254,503 2,126 244,783 735
2007
1,407 134,984 1,263 124,475 456
January ..................................................................................................................................................................... 53,615
935 86,696 861 82,097 273
February ..................................................................................................................................................................... 36,170
1,082 123,974 1,015 118,431 367
March ..................................................................................................................................................................... 49,886
1,219 127,444 1,115 118,040 309
April ..................................................................................................................................................................... 35,229
923 85,816 856 81,153
May .....................................................................................................................................................................224 26,527
1,599 172,810 1,318 148,669 313
June ..................................................................................................................................................................... 36,571
1,599 175,419 1,450 164,939 684
July ..................................................................................................................................................................... 101,390
963 93,458 908 88,345 220
August ..................................................................................................................................................................... 23,361
September ..................................................................................................................................................................... 29,381
717 67,385 667 64,026 246
1,083 108,455 929 97,716 338
October ..................................................................................................................................................................... 50,918
1,799 198,220 1,593 181,184 514
November ..................................................................................................................................................................... 75,413
2,167 224,214 2,071 216,898 699
December ..................................................................................................................................................................... 91,754
2008
1,647 154,503 1,520 144,191 488
January ..................................................................................................................................................................... 54,418
1,269 119,508 1,178 113,587 361
February ..................................................................................................................................................................... 42,527
1,089 114,541 1,039 110,147 333
March ..................................................................................................................................................................... 43,740
1,272 130,810 1,172 121,625 394
April ..................................................................................................................................................................... 48,188
1,552 159,471 1,438 150,462
May .....................................................................................................................................................................388 51,698
1,622 166,742 1,315 140,916 309
June ..................................................................................................................................................................... 42,097
1,891 200,382 1,687 186,018 760
July ..................................................................................................................................................................... 108,733
Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance
Initial claimants for
Mass layoff events
unemployment insurance
Industry
July May June July July May June July
2007 2008 2008 2008 2007 2008 2008 2008
Seasonally adjusted
Total .....................................................................................................................................................................
1,247 1,626 1,643 1,512 127,687 171,387 165,697 151,171
Total, private nonfarm .....................................................................................................................................................................
1,140 1,496 1,491 1,368 119,614 161,912 153,568 140,116
Manufacturing ..................................................................................................................................................................... 72,058
392 528 541 443 51,333 76,514 57,470
Not seasonally adjusted
Total 1 .....................................................................................................................................................................
1,599 1,552 1,622 1,891 175,419 159,471 166,742 200,382
Total, private .....................................................................................................................................................................
1,503 1,467 1,363 1,765 168,280 152,510 144,732 191,309
Agriculture, forestry, fishing and hunting ..................................................................................................................................................................... 5,291
53 29 48 78 3,341 2,048 3,816
Total, private nonfarm .....................................................................................................................................................................
1,450 1,438 1,315 1,687 164,939 150,462 140,916 186,018
Mining .....................................................................................................................................................................2 )
(2) 5 (2) (2) ( 458 (2) (2)
2 2 2 2 2
Utilities ..................................................................................................................................................................... )
( ) 4 ( ) ( ) ( 475 ( ) (2)
Construction ..................................................................................................................................................................... 12,411
88 167 114 72 5,844 7,713 4,941
Manufacturing ..................................................................................................................................................................... 51,698
684 388 309 760 101,390 42,097 108,733
Food .....................................................................................................................................................................
46 48 58 49 4,927 4,800 6,065 4,844
(2) (2) (2)
Beverage and tobacco products .....................................................................................................................................................................
5 5 316 273 (2)
Textile mills .....................................................................................................................................................................
19 6 5 15 2,272 520 730 1,286
Textile product mills 3 .....................................................................................................................................................................
8 8 (2) 5 857 580 (2) 560
Apparel 3 .....................................................................................................................................................................
19 14 7 24 1,678 1,171 534 2,048
(2) 3 3 1,212 (2)
Leather and allied products ..................................................................................................................................................................... 862
7 184
Wood products .....................................................................................................................................................................
27 24 22 38 2,901 2,455 2,314 4,044
Paper .....................................................................................................................................................................
4 11 6 10 259 1,091 411 1,239
Printing and related support activities .....................................................................................................................................................................
5 9 10 12 499 833 1,116 947
2 2 2
Petroleum and coal products .....................................................................................................................................................................
( ) ( ) ( ) (2)
Chemicals .....................................................................................................................................................................
8 9 4 13 826 696 228 999
Plastics and rubber products 3 .....................................................................................................................................................................
65 21 8 62 7,487 1,793 960 6,804
Nonmetallic mineral products .....................................................................................................................................................................
10 14 9 16 1,373 1,175 516 1,412
Primary metals .....................................................................................................................................................................
36 9 12 41 6,318 1,217 1,012 4,606
Fabricated metal products ..................................................................................................................................................................... 1,716
63 29 19 71 6,364 2,596 7,007
Machinery 3 ..................................................................................................................................................................... 3,758
49 25 22 45 6,994 2,611 5,042
Computer and electronic products .....................................................................................................................................................................
20 14 13 30 2,549 1,250 1,091 2,498
Electrical equipment and appliances ..................................................................................................................................................................... 3,052
20 13 8 21 3,271 1,845 2,128
Transportation equipment 3 .....................................................................................................................................................................
249 101 74 269 48,795 21,667 17,597 57,761
Furniture and related products 3 .....................................................................................................................................................................
14 20 12 18 1,394 3,285 1,076 2,397
Miscellaneous manufacturing 3 .....................................................................................................................................................................
10 5