The U.S. Bureau of Labor Statistics (BLS) reported that employers initiated 1,761 mass layoffs in January 2010, causing at least 182,261 workers to file new claims for unemployment benefits. Mass layoffs and related new filings for unemployment benefits increased in January, after decreasing for four consecutive months.
More specifically, January mass layoffs increased by 35 from December, while related new filings (initial claims) for unemployment benefits jumped up by 29,134. Both measures defied a promising downward trend that began in September 2009.
Did you know? President Obama has authorized another round of extended unemployment benefits (Emergency Unemployment Compensation).
From the official start of the recession in December 2007 through January 2010, monthly mass layoff events totaled 53,739 and monthly initial claims for unemployment benefits totaled 5,425,101.
The industry in which workers filed the largest number of mass-layoff initial claims for unemployment benefits in January 2010 (not seasonally adjusted) was temporary help services (”temp workers”), followed by those working in the industries of school and employee bus transportation, discount department stores, motion picture and video production, professional employer organizations, and highway, street and bridge construction.
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Manufacturing, an industry that is often a gauge of labor-market health, reported its first increases in mass layoffs events and initial claims for unemployment benefits since August and September 2009, respectively. The industry accounted for 486 (28 percent) of the mass layoff events and 62,556 (34 percent) of the initial claims in January.
Regionally (not seasonally adjusted), the Midwest reported the highest number of monthly initial unemployment claims filed in January due to mass layoffs, followed by the South, the West and the Northeast. All four regions reported decreases in initial claims from January 2009, with the South and Midwest reporting the largest decreases.
In the states (not seasonally adjusted), California reported the highest number of monthly initial claims filed in January due to mass layoffs, followed by New York and Pennsylvania. 40 states reported decreases in initial claims from January 2009, with Ohio and Pennsylvania reporting the largest decreases.
The national unemployment rate unexpectedly edged down from 10.0 to 9.7 percent in January, its lowest level in five months after reaching its highest level in 26 years. President Obama’s advisors recently forecasted an unemployment rate of 8.2 percent by 2012, but the National Association for Business Economics more recently forecasted at least 9 percent for another year.
If you’ve lost your job through a layoff or suffered a reduction in work hours, then you might be eligible for full or partial unemployment benefits or extended unemployment benefits (Emergency Unemployment Compensation) through the state unemployment office. You might also be entitled to continue your employer-provided health insurance coverage through COBRA. To look for a new job, start at the Job Search page.
Did you know? President Obama has also authorized a COBRA subsidy extension, to further help eligible unemployed workers pay their health insurance premiums.
For more details, facts and figures from the BLS, see the Mass Layoffs news release. The BLS intends to release February 2010 mass layoff numbers on March 23. To receive notification like this, subscribe to Employee Rights Blog for free.
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Each layoff measured involved at least 50 workers per employer, regardless of layoff duration. Worker job losses were measured by initial claims for unemployment benefits. However, not all workers who lose their jobs in mass layoffs are eligible for unemployment benefits; subsequently, job losses are often higher than indicated by initial claims alone.
Except where noted otherwise, mass layoffs and initial unemployment claims were measured on a seasonally-adjusted basis. Seasonal adjustment gives a clearer picture by removing estimated data from seasonal events that affect employment and unemployment numbers; examples are changes in the weather, holidays, and the start or end of the school year. Numbers associated with mass layoffs are subject to revision by the BLS.
The mass layoffs chart pictured above was provided by the BLS.












