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Extended Mass Layoff Actions in California - 2005 (Continued)

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

In the third quarter of 2005, 85 verified mass layoff actions were taken by California employers that resulted in the separation of 16,616 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 third quarter (July-September) of 2004.  Both figures were at their lowest levels for the July-September quarter since 2000.  The year-over declines were most notable in:  manufacturing; the transportation and warehousing industry; and the finance and insurance industry.

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 20 percent of the non-seasonal layoff events.

Among other significant trends:

  • Employers who anticipated recalling workers involved in mass layoff actions, 53 percent expected to extend the offer to all affected workers, a higher percentage than the recall rate from the previous year.

  • The completion of seasonal work accounted for 14 percent of all events and resulted in 5,414 separations during the period.

  • Layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, or reorganization) represent 35 percent of all events and resulted in 4,810 job separations.

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

  • Permanent closure of worksites occurred in 9 percent of all events and affected 830 workers, the fewest number of job separations resulting from permanent closures recorded for any July-September quarter since the establishment of the MLS Program.
In California, the Mass Layoff Statistics Program is operated by California's Labor Market Information Division through a cooperative agreement with the BLS. You may find out more information about the MLS Program online.

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