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Extended Mass Layoff Actions in California - 2007 (Continued)

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

In the fourth quarter (October-December) of 2007, California employers reported 423 mass layoff events that resulted in the separation of 61,292 workers from their jobs for at least 31 days.  This is an increase of 135 mass layoff events and 29,228 separations compared to the fourth quarter of 2006.  The most notable job losses were in the Construction, Manufacturing, 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 2 percent of the non-seasonal layoff events, affecting 665 worker separations.  The percentage of events is lower compared to 3 percent and 2,167 separations reported in the fourth quarter of 2006.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 22 percent expected to extend the offer to all affected workers.  This is a slightly higher percentage recall rate from the previous year, which was 21 percent.

  • Permanent worksite closures occurred in 6 percent of all events, affecting 4,463 workers.  This is a lower percentage of events compared to the fourth quarter of 2006, which was 7 percent of all layoff events resulting in 6,870 separations.
The most common reasons given for the verified layoffs are:

  • Twenty percent of the employers reported 'completed contracts' as the reason for layoffs resulting in 12,449 separations.

  • Nineteen percent of the employers were not able to be contacted for the reason for the layoffs.  These resulted in 11,552 separations.

  • Fifteen percent of the employers reported 'seasonal' as the reason for layoffs resulting in 9,396 separations.

  • Thirteen percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and/or reorganization) resulting in 14,508 separations.

  • Twelve percent of employers reported layoffs due to 'slack work/insufficient demand/ non-seasonal business slow down' resulting in 7,503 separations.
A number of improvements in the 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 reasons 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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