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Extended Mass Layoff Actions in California - 2006 (Continued)

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

In the second quarter of 2006, California employers reported 243 mass layoff actions that resulted in the separation of 52,288 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 higher than in the second quarter (April-June) of 2005.  The year-over decline was most notable in Professional and Technical Services, Manufacturing, and Construction.

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 6 percent of the non-seasonal layoff events and affecting 4,750 worker separations, which is sharply lower than previous year.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 43 percent expected to extend the offer to all affected workers.  This is the same percentage recall rate from the previous year.

  • Permanent worksite closures occurred in 5 percent of all events, affecting 5,020 workers.  A higher number of job separations resulting from permanent closures recorded for the previous April-June quarter.
The most common reasons given for the verified layoffs are as follows:

  • Thirty-eight percent of the employers reported completed contracts as the reason for the layoffs resulting in 9,380 separations.

  • Seventeen percent of the employers reported seasonal work as the reason for the layoffs resulting in 21,505 separations.

  • Sixteen percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulted in 11,328 separations.

  • Nine percent of employers reported vacation period layoffs resulting in 4,346 separations.
The California Employment Development Department'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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