The U.S. Bureau of Labor Statistics (BLS) reported that employers initiated 2,561 mass layoffs in September 2009, causing at least 248,006 additional workers to lose their jobs to the recession. Both measures decreased from August, but were still at year-to-date highs as they were in August.
Update: Congress and President Obama authorized extended unemployment benefits (Emergency Unemployment Compensation) for 14 additional weeks in all states, plus an extra 6 weeks in states with high unemployment rates.
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 unemployment benefits; subsequently, job losses are often higher than indicated by initial claims alone.
September mass layoffs decreased by 129 from August, while related initial claims for unemployment benefits decreased by 11,301. When compared to September 2008, mass layoffs increased by 271 and initial claims increased by 7,285. Year-to-date (January through September) layoffs and related initial claims reached new highs compared to the same period in prior years.
The number of monthly mass layoff events from January through September totaled 23,745 and initial claims totaled 2,410,208. Since the official start of the recession in December 2007, monthly mass layoff events totaled 47,230 in September 2009, while the number of monthly initial claims totaled 4,804,642.
The industry in which workers filed the largest number of mass layoff initial claims in September was temporary help services, followed by those working in construction machinery manufacturing and discount department stores (not seasonally adjusted). Manufacturing as a whole reported a decrease in mass layoffs from August, but an increase in related initial claims.
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Regionally (not seasonally adjusted), the Midwest reported the highest number of monthly initial unemployment claims filed in September due to mass layoffs, followed by the West, the South and the Northeast. The Midwest also reported its highest number of average weekly initial claims for the month of September since the BLS started tracking weekly data.
In the states (not seasonally adjusted), California reported the highest number of monthly initial claims filed in September due to mass layoffs, followed by Illinois, Pennsylvania and Michigan.
The national unemployment rate unexpectedly increased from 9.7 to 9.8 percent in September, its highest level in 26 years. President Obama and leading economists have often indicated that the unemployment rate will likely get worse before it gets better in the long run, resulting in a “jobless” recovery from the recession.
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 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 provides a 65 percent COBRA subsidy, to help eligible unemployed workers pay their health insurance premiums. It also provides additional unemployment benefits of significance.
For more details, facts and figures from the BLS, see the Mass Layoffs news release. The BLS intends to release October 2009 mass layoff numbers on November 20. 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.
