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Extended Mass Layoff Actions in California - 2006 (Continued)

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

In the fourth quarter of 2006, California employers reported 288 mass layoff actions that resulted in the separation of 32,064 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).  There was an increase of 210 layoff events and 17,704 separations compared to the fourth quarter (October-December) of 2005.  The year-over increase in layoffs was most notable in the Manufacturing, Construction, and Finance and Insurance 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 affecting 2,167 worker separations, which is higher than previous year.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 21 percent expected to extend the offer to all affected workers, down from the 43 percent recall rate in the fourth quarter of 2005.

  • Permanent worksite closures occurred in 7 percent of all events affecting 6,870 workers.  This is one percentage point higher than was recorded for the October-December quarter in 2005.
The most common reasons given for the verified layoffs are:

  • Forty-five percent of the employers reported completed contracts as the reason for the layoffs resulting in 10,720 separations.

  • Eighteen percent of the employers reported seasonal work as the reason for the layoffs resulting in 6,471 separations.

  • Thirteen percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulting in 11,613 separations.

  • Two percent of employers reported business ownership change as the reason for layoffs, resulting in 5,443 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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