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Extended Mass Layoff Actions in California - 2006

  First Quarter 2006
  Second Quarter 2006
  Third Quarter 2006
  Fourth Quarter 2006
First Quarter 2006

In the first quarter of 2006, California employers reported 184 mass layoff actions that resulted in the separation of 31,626 workers from their jobs for at least 31 days.  LMID collects these preliminary data through the federal Mass Layoff Statistics (MLS) Program for release 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 higher than in the first quarter (January-March) of 2005.  The year-over declines were most notable in the construction, manufacturing, and retail 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 3 percent of the non-seasonal layoff events and worker separations, which is sharply lower than previous year.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 30 percent expected to extend the offer to all affected workers.  This is a lower percentage than the recall rate from the previous year.

  • Permanent worksite closures occurred in 5 percent of all events, affecting 1,150 workers.  A lower number of job separations resulting from permanent closures recorded for the previous January-March quarter.
The most common reasons given for the verified layoffs are:

  • Thirty-two percent of the employers reported completed contracts as the reason for the layoffs resulting in 7,607 separations.

  • Fifteen percent of the employers reported seasonal work as the reason for the layoffs resulting in 7,892 separations.

  • Eleven percent of employers reported weather related layoffs resulting in 2,188 separations.

  • Fourteen percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulting in 6,823 separations.
In California, 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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