The U.S. Bureau of Labor Statistics (BLS) reported that employers initiated 2,127 mass layoffs in October 2009, causing at least 217,182 additional workers to lose their jobs to the recession. Both measures decreased from September, but were still at year-to-date highs as they were in August and September.
Each layoff measured involved at least 50 workers per employer, regardless of layoff duration. Worker job losses were measured by new filings (initial claims) for state unemployment benefits. However, not all workers who lose their jobs in mass layoffs are eligible for state unemployment benefits; subsequently, job losses are often higher than indicated by initial claims alone.
October mass layoffs decreased by 434 from September, while related initial claims for unemployment benefits decreased by 30,824. Compared to October 2008, mass layoffs decreased by 77 and initial claims decreased by 13,148. Still, year-to-date (January through October) layoffs and related initial claims recorded new highs compared to the same period in prior years.
The number of monthly mass layoff events from January through October 2009 totaled 25,872 and initial claims totaled 2,627,390. Since the official start of the recession in December 2007, monthly mass layoff events totaled 49,357 in October 2009, while the number of monthly initial claims totaled 5,021,824.
The industry in which workers filed the largest number of mass layoff initial claims in October (not seasonally adjusted) was temporary help services, followed by those working in the industries of motion picture and video production, professional employer organizations and automobile manufacturing.
Manufacturing as a whole reported a decrease in both mass layoffs and related initial claims from September, but still accounted for 29 percent of mass layoff events and 36 percent of initial claims in October.
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Regionally (not seasonally adjusted), the West reported the highest number of monthly initial unemployment claims filed in October due to mass layoffs, followed by the Midwest, the South and the Northeast. All four regions reported decreases in initial claims from October of last year, with the Midwest reporting the largest decrease.
In the states (not seasonally adjusted), California reported the highest number of monthly initial claims filed in October due to mass layoffs, followed by Illinois, Florida, Wisconsin, Pennsylvania and Ohio. Twenty-six states reported decreases in initial claims from October of last year, with Michigan, Ohio and Kentucky reporting the largest decreases.
The national unemployment rate unexpectedly skyrocketed from 9.8 to 10.2 percent in October, its highest level in 26+ years. Some economists have indicated that they expect the unemployment rate to peak at near 11 percent in 2010.
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.
The Stimulus Act (economic stimulus plan or Recovery Act) provides a 65 percent COBRA subsidy, to help eligible unemployed workers pay their health insurance premiums. It also provides expanded and extended unemployment benefits. President Obama recently authorized another round of extended unemployment benefits, in addition to the round provided by the Stimulus Act.
For more details, facts and figures from the BLS, see the Mass Layoffs news release. The BLS intends to release November 2009 mass layoff numbers on December 22. To receive notification like this, subscribe to Employee Rights Blog for free.
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Except where noted, 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. All numbers associated with mass layoffs are subject to revision by the BLS.
The mass layoffs chart pictured above was provided by the BLS.
