In the second quarter of 2012, 1,476 extended mass layoff events separate 262,848 workers
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EXTENDED MASS LAYOFFS -- SECOND QUARTER 2012 Employers in the private nonfarm sector initiated 1,476 mass layoff events in the second quarter of 2012 that resulted in the separation of 262,848 workers from their jobs for at least 31 days, the U.S. Bureau of Labor Statistics reported today. Over the year, total extended mass layoff events and associated worker separations were down from 1,810 and 317,546, respectively. (See table A.) In 2012, total events reached their lowest second quarter level since 2007, while manufacturing sector events declined to their lowest level for any quarter in program history (with data available back to 1995). The completion of seasonal work accounted for 44 percent of the total extended mass layoff events during the quarter. Second quarter 2012 layoff data are preliminary and are subject to revision. (See the Technical Note.) Industry Distribution of Extended Layoffs Over the year ending in the second quarter of 2012, the number of private nonfarm extended mass layoff events declined in 15 of the 18 major industry sectors, with the largest decreases occurring in accommodation and food services and in manufacturing. Total manufacturing events declined over-the-year from 263 to 180, their lowest level for any quarter in program history. Sixteen of the 21 manufacturing subsectors experienced over-the-year decreases in the number of layoff events. (See table 1.) The construction sector had 194 extended mass layoff events and 21,825 separations, primarily due to contract completion. This sector accounted for 13 percent of the layoff events and 8 percent of the related separations during the second quarter of 2012. Reasons for Extended Layoffs Layoffs due to the completion of seasonal work accounted for 44 percent of extended mass layoff events and 51 percent of related separations in the private nonfarm sector during the second quarter of 2012. Business demand factors, primarily contract completion, accounted for 32 percent of the events and 27 percent of related separations during the quarter. (See table 2.) Table A. Selected measures of extended mass layoff activity Period Layoff events Separations Initial claimants 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........... 1,370 222,357 260,077 October-December......... 1,999 338,643 390,584 2011 January-March............ 1,490 225,456 258,220 April-June............... 1,810 317,546 342,530 July-September (r) ...... 1,393 235,325 291,066 October-December (r) .... 1,903 334,383 403,439 2012 January-March (r) ....... 1,290 245,901 286,384 April-June (p) .......... 1,476 262,848 221,997 r = revised. p = preliminary. Movement of Work In the second quarter of 2012, 36 extended mass layoffs involved movement of work and were associated with 7,506 worker separations. Forty-seven percent of the events related to movement of work were from manufacturing industries. Employers cited organizational changes as the economic reason for layoff in 58 percent of the events involving movement of work. Among workers seperated by the movement of work, the largest proportions were in the Midwest. (See tables 6-8.) The 36 events with movement of work for the second quarter involved 42 identifiable relocations of work actions. (See table 9.) Employers were able to provide information on the specific number of worker separations for 25 of these actions. Among these actions, most were domestic reassignments and involved work moving within the same company. (See table 10.) Recall Expectations Sixty-four percent of the private nonfarm employers reporting an extended mass layoff in the second quarter of 2012 anticipated recalling at least some of the displaced workers--the highest second quarter percentage since 1998. Of those employers expecting to recall workers, 44 percent indicated the offer would be extended to all displaced employees and 77 percent anticipated extending the offer to at least half of the workers. Among employers expecting to recall laid-off workers, 75 percent intend to do so within six months. Excluding extended mass layoff events due to seasonal work and vacation period, employers anticipated recalling laid-off workers in 38 percent of the events. (See table 11.) Table B. Metropolitan areas with the largest number of initial claimants associated with extended mass layoff events in the second quarter 2012, by residency of claimants 2011 II (r) 2012 II (p) Metropolitan area Initial Initial claimants Rank claimants Rank Total, 372 metropolitan areas ........... 278,922 181,686 Los Angeles-Long Beach-Santa Ana, Calif. ........ 34,819 1 22,248 1 New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. ....................... 20,469 2 16,019 2 Chicago-Joliet-Naperville, Ill.-Ind.-Wis. ....... 14,664 3 12,497 3 Riverside-San Bernardino-Ontario, Calif. ........ 9,355 4 6,134 4 Philadelphia-Camden-Wilmington, Pa. -N.J.-Del.-Md. ............................... 8,621 5 4,561 5 St. Louis, Mo.-Ill. ............................. 5,077 9 4,190 6 San Francisco-Oakland-Fremont, Calif. ........... 7,826 6 4,087 7 Kansas City, Mo.-Kan. ........................... 1,904 27 3,353 8 Pittsburgh, Pa. ................................. 5,600 8 3,042 9 Houston-Sugar Land-Baytown, Texas ............... 3,118 13 2,881 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. Size of Extended Layoffs The average size of a layoff (as measured by the number of separations per layoff event) was 178 workers during the second quarter of 2012. (See table 12.) Events were largely concentrated at the lower end of the extended layoff-size spectrum, with 67 percent involving fewer than 150 workers. Conversely, only 6 percent of layoff events involved 500 or more workers. (See table 13.) Initial Claimant Characteristics A total of 221,997 initial claimants for unemployment insurance were associated with extended mass layoffs in the second quarter of 2012. Of these claimants, 18 percent were black, 18 percent were Hispanic, 53 percent were women, and 25 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, 16 percent were Hispanic, 47 percent were women, and 21 percent were 55 years of age or older. Geographic Distribution Among the four census regions, the West recorded the highest number of extended mass layoff events in the second quarter of 2012. Among the nine census divisions, the highest number of mass layoff events was in the Pacific. All regions and 8 of the 9 divisions registered fewer extended mass layoff events compared with the second quarter of 2011. (See table 4.) California recorded the largest number of extended mass layoff events in the second quarter of 2012, followed by Illinois, Pennsylvania, and New York. Over the year, 38 states reported decreased numbers of extended mass layoff events for the second quarter. The largest declines were in California, Florida, and Pennsylvania. (See table 5.) Eighty-two percent of the initial claimants for unemployment insurance associated with extended mass layoff events in the second quarter of 2012 resided within metropolitan areas. Among the 372 metropolitan areas, Los Angeles-Long Beach-Santa Ana, Calif., reported the highest number of resident initial claimants. (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 July is scheduled to be released on Thursday, August 23, 2012, at 10:00 a.m. (EDT).
- Mass Layoffs Technical Note
- Table 1. Industry distribution: Extended mass layoff events, separations, and initial claimants for unemployment insurance, private nonfarm sector, selected quarters, 2011 and 2012
- Table 2. Reason for layoff: Extended mass layoff events, separations, and initial claimants for unemployment insurance, private nonfarm sector, selected quarters, 2011 and 2012
- Table 3. State and selected claimant characteristics: Extended mass layoff events and initial claimants for unemployment insurance, private nonfarm sector, first and second quarters, 2012
- Table 4. Census region and division: Extended mass layoff events, separations, and initial claimants for unemployment insurance, private nonfarm sector, selected quarters, 2011 and 2012
- Table 5. State distribution: Extended mass layoff events, separations, and initial claimants for unemployment insurance, private nonfarm sector, selected quarters, 2011 and 2012
- Table 6. Industry distribution: Extended mass layoff events and separations associated with the movement of work, selected quarters, 2011 and 2012
- Table 7. Reason for layoff: Extended mass layoff events and separations associated with the movement of work, selected quarters, 2011 and 2012
- Table 8. Census region and division: Extended mass layoff events and separations associated with the movement of work, selected quarters, 2011 and 2012
- Table 9. Extended mass layoff events and separations, selected measures, selected quarters, 2011 and 2012
- Table 10. Movement of work actions by type of separation where number of separations is known by employers, selected quarters, 2011 and 2012
- Table 11. Summary of employer expectations of a recall from extended mass layoffs, private nonfarm sector, selected quarters, 2011 and 2012
- Table 12. Average number of separations in extended mass layoff events by selected measures, private nonfarm sector, selected quarters, 2011 and 2012
- Table 13. Distribution of extended ayoff events by size of layoff, private nonfarm sector, second quarter 2012(p)
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