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
Third Quarter 2007

In the third quarter (July-September) of 2007, California employers reported 294 mass layoff events that resulted in the separation of 34,924 workers from their jobs for at least 31 days.  This is an increase of 85 mass layoff events and separations of 4,505 workers compared to the third quarter of 2006.  The most notable job losses were in Finance and Insurance, Construction, and Manufacturing 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 1,290 worker separations.  Although the percentage of events increased by 1 percent the number of affected workers was less than the 1,641 employees reported in the third quarter of 2006.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 19 percent expected to extend the offer to all affected workers.  This is a sharply lower percentage recall rate from the previous year, which was 26 percent.


  • Permanent worksite closures occurred in 3 percent of all events, affecting 3,378 workers.  This is a lower number of job separations resulting from permanent closures compared to the third quarter of 2006, which was 5 percent of all layoff events and affected 4,773 employees.
The most common reasons given for the verified layoffs are as follows:

  • Thirty-five percent of the employers reported 'completed contracts' as the reason for layoffs resulting in 8,405 separations.


  • Sixteen percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and/or reorganization) resulting in 9,067 separations.


  • Fourteen percent of the employers reported 'financial difficulty' as the reason for layoffs resulting in 6,082 separations.


  • Ten percent of employers reported layoffs due to 'slack work/insufficient demand/ non-seasonal business slow down' resulting in 4,082 separations.
A number of improvements in collection of Extended Mass Layoffs data 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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