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Extended Mass Layoff Actions in California - 2009 (Continued)

  First Quarter 2009
  Second Quarter 2009
  Third Quarter 2009
  Fourth Quarter 2009
Third Quarter 2009

In the third quarter (July-September) of 2009, California employers reported 685 mass layoff events that resulted in the separation of 117,046 workers from their jobs for at least 31 days. This is an increase of 239 mass layoff events and 52,966 separations compared to the third quarter of 2008. California's total number of 685 mass layoff events was 39 percent of the nation's 1,776 reported layoff events and the 117,046 separations were 41 percent of the nation's 277,924 reported separations. The most notable job losses were in 'Manufacturing', 'Construction' and 'Administrative and Waste Services.'

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, which resulted in 2,422 worker separations. Although this is the same percentage as the movement of work in the third quarter of 2008, the layoffs resulted in an increase of 163 more separations.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 27 percent expected to extend the offer to all affected workers. This recall rate is higher than the previous year's rate of 22 percent.

  • Permanent worksite closures occurred in 9 percent of all events and affected 11,656 workers. This is decrease of 3 percent of reported events in the third quarter of 2008, but resulted in an increase of 2,531 separations.

The most common reasons given for the verified layoffs are as follows:

  • Twenty-one percent of employers reported layoffs due to "slack work/ insufficient demand/ non-seasonal business slow down" which resulted in 16,155 separations.

  • Eighteen percent of the employers reported layoffs due to "Contract completion" as the reason for layoffs that resulted in 14,726 separations.

  • Seven percent of employers reported layoffs due to internal company restructuring, which includes "bankruptcy," "business ownership change," "financial difficulty," and/or "reorganization," These restructurings resulted in 10,634 separations.

  • Seven percent of the employers reported layoffs due to "Seasonal," as the reason for layoffs that resulted in 9,140 separations.

  • Employers did not provide reason for layoff for 26 percent of the layoffs, a total of 31,427 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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