Sample 1 - State of California
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Extended Mass Layoff Actions in California - 2007 (Continued)


  First Quarter 2007
  Second Quarter 2007
  Third Quarter 2007
  Fourth Quarter 2007
Second Quarter 2007

In the second quarter of 2007, California employers reported 328 mass layoff actions that resulted in the separation of 59,294 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).  The over-the-year decline in separations was most notable in Professional and technical services, Construction, and Finance and Insurance.  Despite this decline there was an overall increase of 85 layoff events and 7,006 separations compared to the previous second quarter (April-June) of 2006.

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, affecting 516 worker separations, which is sharply lower than previous second quarter (April-June) of 2006, which was 6 percent of all layoff events and affecting 4,750 employees.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 28 percent expected to extend the offer to all affected workers.  This is the lower percentage recall rate from the previous year, which was 43 percent.


  • Permanent worksite closures occurred in 2 percent of all events, affecting 925 workers.  This is a lower number of job separations resulting from permanent closures compared to the previous second quarter (April-June) of 2006, which was 5 percent of all layoff events and affecting 5,020 employees.
The most common reasons given for the verified layoffs are as follows:

  • Thirty-six percent of the employers reported completed contracts as the reason for the layoffs resulting in 12,515 separations.


  • Thirteen percent of the employers reported seasonal work as the reason for the layoffs resulting in 18,668 separations.


  • Nine percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulting in 9,951 separations.


  • Six percent of employers reported layoffs due to Cost control/cost cutting/increase profitability resulting in 3,213 separations. (New reason code in 2007)


  • Two percent of employers reported business ownership change as the reason for layoffs resulting in 4,351 separations.
A number of improvements in collection of Extended Mass Layoffs were implemented in the first quarter 2007.  The data on economic reasons have been enhanced by developing more descriptive reason titles and clarifying definitions.  Four new reasons for layoffs were added:

  • domestic competition
  • excess inventory/saturated marketplace
  • hazardous work environment
  • cost control/cost cutting/increase profitability
Further information on the New Reasons Classification can be found online.

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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