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Extended Mass Layoff Actions in California - 2009 (Continued)

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

In the fourth quarter (October-December) of 2009, California employers reported 578 mass layoff events that resulted in the separation of 102,821 workers from their jobs for at least 31 days. This is a decrease of 156 mass layoff events and 6,262 separations compared to the fourth quarter of 2008. California's total number of 578 mass layoff events was 28 percent of the nation's 2,043 reported layoff events and the 102,821 separations were 32 percent of the nation's 321,569 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 2 percent of the non-seasonal layoff events, which resulted in 599 worker separations. This is the same percentage of events as reported in the fourth quarter of 2008 with a decrease of 1,470 separations.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 28 percent expected to extend the offer to all affected workers. This recall rate is higher than the previous year's rate of 24 percent.

  • Permanent worksite closures occurred in 9 percent of all events and affected 7,422 workers. Although this is an increase of 7 percent of events from the 2 percent in the fourth quarter of 2008, the layoffs resulted in 6,142 fewer separations.

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

  • Thirteen percent of the employers reported layoffs due to "Seasonal," as the reason for layoffs that resulted in 13,276 separations.

  • Twelve percent of employers reported layoffs due to "slack work/ insufficient demand/ non-seasonal business slow down," which resulted in 12,338 separations.

  • Eight percent of the employers reported layoffs due to "Contract completion" as the reason for layoffs that resulted in 8,652 separations.

  • Eight 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 11,479 separations.

  • Employers did not provide a reason for 26 percent of the layoffs, a total of 26,939 separations.
The California Employment Development Department's (EDD) Labor Market Information Division (LMID) 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. State data may not match BLS published data due to the dynamic nature of State MLS databases.

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