The U.S. Bureau of Labor Statistics (BLS) reported that employers initiated 1,609 mass layoffs in July 2010, which resulted in 143,703 workers filing new claims for unemployment benefits. Both numbers decreased from June.
More specifically, monthly mass layoffs decreased by 38 and related new filings (initial claims) for unemployment benefits decreased by 1,835.
However, closer to the date of this post, weekly initial claims unexpectedly hit a nine-month high. Initial claims increased to 500,000 in the week ending August 14, the most since mid-November. According to Reuters, the financial markets had expected initial claims to drop to 476,000 in the same week.
The industry in which workers filed the largest number of mass-layoff initial claims for unemployment benefits in July (not seasonally adjusted) was elementary and secondary schools, followed by temporary help services (“temp workers”) and school and employee bus transportation.
Manufacturing, an industry that is often a gauge of labor-market health, accounted for 25 percent of the mass layoffs and 31 percent of the initial claims filed in July. Although manufacturing continues to separate workers from their jobs, at least its been laying off fewer compared to last year. In July 2009, the industry accounted for 37 percent of larger mass layoffs and a whopping 46 percent of considerably more initial claims.
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From December 2007, the official start of the recession, through July 2010, monthly mass layoff events across all industries totaled 63,461 and monthly initial claims for unemployment benefits totaled 6,357,583.
Regionally in July (not seasonally adjusted), the West once again reported the highest number of monthly initial unemployment claims filed due to mass layoffs, followed by the Midwest, South and Northeast. All four regions reported over-the-year reductions in initial claims from July 2009, with the Midwest reporting the most.
Across the states in July (not seasonally adjusted), California once again reported the highest number of monthly initial claims filed due to mass layoffs, followed by New York, Michigan and Illinois. Thirty-eight states and the District of Columbia reported over-the-year reductions in initial claims from July 2009, with California leading the pack. Last month, 39 states reported the same and in May, 44 states did.
The unemployment rate held steady at 9.5 percent from June into July despite that the economy shed 131,000 nonfarm jobs; but, deceptively so. The unemployment rate didn’t rise even with that many jobs disappearing, because over a million unemployed, so-called “discouraged workers” stopped actively seeking employment. As a result, the BLS didn’t count those workers in the unemployment rate, giving it only the appearance of holding steady.
If you’ve recently 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? On July 22, 2010, President Obama again restored previously-authorized extended unemployment benefits, this time by signing the Unemployment Compensation Extension Act of 2010.
For more details, facts and figures from the BLS, see the Mass Layoffs news release. The BLS intends to release August 2010 mass layoff numbers on September 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.












