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Extended Mass Layoff Actions in California - 2005

  Second Quarter 2005
  Third Quarter 2005
  Fourth Quarter 2005
Second Quarter 2005

In the second quarter of 2005, 132 mass layoff actions were taken by California employers that resulted in the separation of 25,532 workers from their jobs for at least 31 days, according to preliminary data collected through the federal Mass Layoff Statistics (MLS) Program and released by the U.S. Department of Labor's Bureau of Labor Statistics (BLS).  Both the total number of layoff events and the number of separations were sharply lower than in the second quarter (April through June) of 2004.  Both figures were at their lowest levels for the April through June quarter since 2000.  The year-over declines were most notable in administrative and support services; transit and ground passenger transportation; and food manufacturing.

Extended mass layoffs that involve the movement of work within the same company or to a different company, domestically or outside of the United States, occurred in 11 percent of the non-seasonal layoff events and worker separations.

Among other significant trends:

  • Employers who anticipated recalling workers involved mass layoff actions, 43 percent expected to extend the offer to all affected workers, a lower percentage than the recall rate from the previous year.

  • The completion of seasonal work accounted for 20 percent of all events and resulted in 6,174 separations during the period.

  • Layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulted in 4,792 job separations, which represents 28 percent of all events.

  • The level of separations resulting from company restructuring is the lowest recorded level for any April-June period since the establishment of the MLS Program.

  • Permanent closure of worksites occurred in 6 percent of all events and affected 1,742 workers, the fewest number of job separations resulting from permanent closures recorded for any April-June quarter since the establishment of the MLS Program.
California's Labor Market Information Division, through a cooperative agreement with the BLS, operates the Mass Layoff Statistics Program.  You may find out more information about the MLS Program online.

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