U.S. Mass Layoffs in December 2011 and Annual Totals in 2011
Employers took 1,384 mass layoff actions in December involving 145,648 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Bureau of Labor Statistics reported today. Each mass layoff involved at least 50 workers from a single employer. Mass layoff events in December increased by 52 from November, and associated initial claims increased by 14,021. In December, 351 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 39,081 initial claims.
The national unemployment rate was 8.5 percent in December, down from 8.7 percent the prior month and from 9.4 percent a year earlier. Total nonfarm payroll employment increased by 200,000 over the month and by 1,640,000 over the year.
Industry Distribution (Not Seasonally Adjusted)
The number of mass layoff events in December was 2,433, not seasonally adjusted, resulting in 263,665 initial claims for unemployment insurance. Over the year, average weekly mass layoff events increased by 4 to 487, and associated average weekly initial claims increased by 6,700 to 52,733. Ten of the 19 major industry sectors in the private economy reported over-the-year increases in average weekly initial claims, with the largest increases occurring in manufacturing. The six-digit industry with the largest number of private nonfarm initial claims in December 2011 was temporary help services. (See table A.)
Table A. Six-digit NAICS industries with the largest number of mass layoff initial claims in December 2011, private nonfarm, not seasonally adjusted
In December, the manufacturing sector accounted for 28 percent of mass layoff events and 30 percent of associated initial claims in the private economy. A year earlier, manufacturing made up 25 percent of events and 30 percent of initial claims. Within manufacturing, the numbers of mass layoff claimants in December 2011 were greatest in transportation equipment, food, and textile mills. Twelve of the 21 manufacturing subsectors experienced
over-the-year increases in average weekly initial claims, with the largest increases occurring in food and in textile mills.
Geographic Distribution (Not Seasonally Adjusted)
Among the census regions, the Midwest registered the greatest number of initial claims in December. All four regions experienced over-the-year increases in average weekly initial claims, with the largest increase occurring in the West.
Among the states, California recorded the highest number of mass layoff initial claims in December, followed by Pennsylvania, Illinois, Michigan, Ohio, and New York. Twenty-nine states experienced over-the-year increases in average weekly initial claims, led by California and Pennsylvania.
Table B. Number of mass layoff events and initial claimants for unemployment insurance, 1996-2011, not seasonally adjusted
Review of 2011
For all of 2011, the total numbers of mass layoff events, at 18,521, and initial claims, at 1,808,451, declined to their lowest levels since 2007. (See table B.) Twelve of the 19 major industry sectors in the private economy reported over-the-year decreases in initial claims, led by manufacturing, construction, and retail trade. In 2011, total initial claims in the manufacturing sector declined to a series low 481,702.
The manufacturing sector accounted for 26 percent of mass layoff events and 29 percent of associated initial claims in the private economy in 2011, about the same percentages as in 2010. The number of manufacturing claimants in 2011 was highest in transportation equipment and in food. Total initial claims in 14 of the 21 manufacturing subsectors decreased between 2010 and 2011, with transportation equipment and machinery experiencing the largest declines.
Table C. Six-digit NAICS industries with the largest number of mass layoff initial claims in 2011, private nonfarm, not seasonally adjusted
The six-digit industry in the private nonfarm sector with the greatest number of initial claims in 2011 was temporary help services. Child day care services and wired telecommunications carriers entered the list of 10 industries with the highest initial claims for the entire year. (See table C.) Four industries among these 10 reached program highs in 2011--school and employee bus transportation, food service contractors, child day care centers, and wired telecommunications carriers. (Annual data began in 1996.)
Two of the 4 census regions reported over-the-year decreases in initial claims from 2010 to 2011, with the largest decline occurring in the West. Among the states, California recorded the highest number of mass layoff initial claims in 2011, followed by Pennsylvania, New York, Florida, and Wisconsin. Twenty-nine states experienced over-the-year decreases in total initial claims for the year, led by California, Illinois, and Florida.
Note
The monthly data series in this release cover mass layoffs of 50 or more workers beginning in a given month, regardless of the duration of the layoffs. For private nonfarm establishments, information on the length of the layoff is obtained later and issued in a quarterly release that reports on mass layoffs lasting more than 30 days (referred to as "extended mass layoffs"). The quarterly release provides more information on the industry classification and location of the establishment and on the demographics of the laid-off workers. The monthly data series in this release are subjected to average weekly analysis, which mitigates the effect of differing lengths of months. See the Technical Note for more detailed definitions and for a description of average weekly analysis.
Source: U.S. Bureau of Labor Statistics
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