Sample 1 - State of California
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Extended Mass Layoff Actions in California - 2008 (Continued)


  First Quarter 2008
  Second Quarter 2008
  Third Quarter 2008
  Fourth Quarter 2008
Second Quarter 2008

We have added a new page to the LaborMarketInfo Web site for the Mass Layoff Statistics (MLS).  The new page has information on MLS methodology and frequently asked questions and links to data tools and previous "LMI e-Newsletter" articles.

In the second quarter (April-June) of 2008, California employers reported 438 mass layoff events that resulted in the separation of 81,856 workers from their jobs that lasted at least 31 days.  This is an increase of 110 mass layoff events and 22,562 separations compared to the second quarter of 2007.  The most notable job losses were in the Finance and Insurance services, Professional and Technical services, and Construction.

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, which resulted in 1,327 worker separations.  This is the same as the second quarter of 2007 that reported 2 percent in layoff events but resulted in 811 more separations.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 36 percent expected to extend the offer to all affected workers.  This recall rate is higher than the previous year's 28 percent.


  • Permanent worksite closures occurred in 1 percent of all events, and affected 829 workers.  This is lower than the 2 percent reported in second quarter of 2007 that resulted in 925 separations.
The most common reasons given for the verified layoffs are as follows:

  • Twenty-seven percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and/or reorganization) which resulted in 22,330 separations.


  • Twenty-two percent of the employers reported layoffs due to "seasonal" as the reason for layoffs that resulted in 18,066 separations.


  • Eighteen percent of the employers reported layoffs due to "business ownership change" as the reason for layoffs that resulted in 15,073 separations.


  • Fifteen percent of the employers reported 'does not know' as the reason for layoffs that resulted in 12,147 separations.


  • Eleven percent of the employers reported layoffs due to 'completed contracts' as the reason for layoffs that resulted in 9,254 separations.


  • Eight percent of employers reported layoffs due to 'slack work/ insufficient demand/ non-seasonal business slow down' which resulted in 6,833 separations.
The California Employment Development Department's Labor Market Information Division operates the Mass Layoff Statistics Program through a cooperative agreement with the US Bureau of Labor Statistics. You can access MLS data on our Web site.


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