U.S. Mass Layoffs Summary on December 2012
Employers took 1,509 mass layoff actions in December involving 137,839 workers as measured by new filings for unemployment insurance benefits during the month, the U.S. Bureau of Labor Statistics reported today. (Data are seasonally adjusted.) Each mass layoff involved at least 50 workers from a single employer. Mass layoff events decreased by 240 from November, and the number of associated initial claims decreased by 35,040. In December, 330 mass layoff events were reported in the manufacturing sector resulting in 35,211 initial claims. Monthly mass layoff data are identified using administrative data sources without regard to layoff duration.
Revision of Seasonally Adjusted Mass Layoff Data
Seasonally adjusted mass layoffs data have been revised using updated seasonal adjustment factors that incorporate 2012 data. Seasonally adjusted estimates back to January 2008 were subject to revision. Revised seasonally adjusted data from January 2009 forward are shown in table 1.
The national unemployment rate was 7.8 percent in December, unchanged from the prior month and down from 8.5 percent a year earlier. Total nonfarm payroll employment increased by 155,000 over the month and by 1,835,000 over the year.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in December was 1,973, not seasonally adjusted, resulting in 187,137 initial claims for unemployment insurance. Over the year, the number of average weekly mass layoff events for December increased by 6 to 493, while associated average weekly initial claims decreased by 5,949 to 46,784. Ten of the 19 major industry sectors in the private economy reported over-the-year decreases in average weekly initial claims, with the largest decrease occurring in manufacturing. The six-digit industry with the largest number of private nonfarm initial claims due to mass layoffs was food service contractors.
In December, the manufacturing sector accounted for 25 percent of mass layoff events and 28 percent of associated initial claims in the private economy. Within anufacturing, the numbers of mass layoff claimants were highest in transportation equipment and in food. Sixteen of the 21 manufacturing subsectors experienced over-the-year decreases in average weekly initial claims.
Geographic Distribution (Not Seasonally Adjusted)
Among the census regions, the Midwest registered the largest number of initial claims due to mass layoffs in December. Three of the 4 regions experienced over-the-year decreases in average weekly initial claims, with the largest decrease occurring in the West.
Among the states, California recorded the highest number of mass layoff initial claims in December, followed by Michigan, Pennsylvania, and Illinois. Twenty-five states experienced over-the-year decreases in average weekly initial claims, with the largest declines in California and Pennsylvania.
Review of 2012
In 2012, the annual totals of mass layoff events, at 17,080, and of initial claims, at 1,666,931, declined to their lowest levels since 2007. Eleven of the 19 major industry sectors in the private economy reported decreases in initial claims in 2012, led by administrative and waste services, manufacturing, and information. In 2012, total initial claims in the manufacturing sector declined to a series low 448,687.
The manufacturing sector accounted for 24 percent of all mass layoff events and 29 percent of initial claims filed in the private economy in 2012, down slightly from 2011 percentages. The number of manufacturing claimants in 2012 was highest in transportation equipment and in food. Total initial claims in 17 of the 21 manufacturing subsectors decreased in 2012 from 2011, with transportation equipment and wood products experiencing the largest declines.
The six-digit industry in the private nonfarm sector with the greatest number of initial claims in 2012 was temporary help services. Casino hotels entered the list of 10 industries with the highest initial claims for the entire year and reached a program high. Two other industries among these 10 reached program highs in 2012--school and employee bus transportation and food service contractors.
Three of the 4 census regions reported over-the-year decreases in total annual initial claims from 2011 to 2012, with the largest decline occurring in the West. Among the states, California recorded the highest number of total annual mass layoff initial claims in 2012, followed by New York, Pennsylvania, New Jersey, and North Carolina. Thirty-six states and the District of Columbia experienced over-the-year decreases in total initial claims for the year, led by California, Wisconsin, Pennsylvania, and Florida.
Source: U.S. Bureau of Labor Statistics
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