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Extended Mass Layoff Actions in California - 2006 (Continued)

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

In the third quarter of 2006, California employers reported 209 mass layoff actions that resulted in the separation of 30,419 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 third quarter (July-September) of 2005.  The year-over change was most notable in Manufacturing, Construction, and Finance and Insurance.

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 2 percent of the non-seasonal layoff events and affecting 1,641 worker separations, which is sharply lower than the previous year.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 26 percent expected to extend the offer to all affected workers.  This is the higher percentage recall rate from the previous year.

  • Permanent worksite closures occurred in 5 percent of all events, affecting 4,773 workers.  A slightly lower number of job separations resulting from permanent closures was recorded for the previous July-September quarter.
The most common reasons given for the verified layoffs are as follows:

  • Forty-six percent of the employers reported completed contracts as the reason for the layoffs resulting in 8,305 separations.

  • Eleven percent of the employers reported seasonal work as the reason for the layoffs resulting in 2,833 separations.

  • Twenty-one percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulting in 11,343 separations.

  • Two percent of employers reported vacation period layoffs resulting in 328 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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