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Extended Mass Layoff Actions in California - 2005 (Continued)

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

In the fourth quarter of 2005, California employers reported 78 mass layoff actions that resulted in the separation of 14,360 workers from their jobs for at least 31 days.  These preliminary data are 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 fourth quarter (October-December) of 2004.  Both figures were at their lowest levels for the October-December quarter since 2000.  The year-over declines were most notable in the manufacturing, retail, and transportation and warehousing industries.

Extended mass layoffs that involve the movement of work within the same company or to a different company, whether domestic or outside of the United States, occurred in 12 percent of the non-seasonal layoff events and worker separations.

Other significant trends include:

  • Of the employers who anticipated recalling workers involved in mass layoff actions, 50 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 51 percent of all events and resulted in 7,264 separations during the period.

  • Layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulted in 2,659 job separations, which represents 23 percent of all events.

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

  • Permanent closure of worksites occurred in 4 percent of all events and affected 747 workers, the fewest number of job separations resulting from permanent closures recorded for any October-December quarter since the beginning of the MLS Program.
California's Labor Market Information Division operates the Mass Layoff Statistics Program through a cooperative agreement with the BLS.  You may find out more information about the MLS Program online.

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