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Extended Mass Layoff Actions in California - 2010 (Continued)

  First Quarter 2010
  Second Quarter 2010
  Third Quarter 2010
  Fourth Quarter 2010
Second Quarter 2010

In the second quarter (April-June) of 2010, California employers reported 522 mass layoff events that resulted in the separation of 102,085 workers from their jobs for at least 31 days. This is a decrease of 282 mass layoff events and 41,228 separations compared to the second quarter of 2009. California's total number of 522 mass layoff events was 28 percent of the nation's 1,851 reported layoff events and the 102,085 separations were 30 percent of the nation's 338,064 reported separations. The most notable job losses were in 'Manufacturing', 'Construction,' and 'Retail Trade.'

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 1 percent of the non-seasonal layoff events, which resulted in 271 worker separations. This is a decrease of 2 percent of events as reported in the second quarter of 2009 with a decrease of 6,071 separations.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 51 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 10 percent of all events and affected 14,232 workers. Although this is an increase of 3 percent of events from the 7 percent in the second quarter of 2009, the layoffs resulted in 1,380 fewer separations.

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

  • Sixteen percent of the employers reported layoffs due to "Seasonal," as the reason for layoffs that resulted in 16,752 separations.

  • Fifteen percent of employers reported layoffs due to "slack work/ insufficient demand/ non-seasonal business slow down," which resulted in 15,631 separations.

  • Thirteen percent of the employers reported layoffs due to "Contract completion" as the reason for layoffs that resulted in 13,734 separations.

  • Nineteen 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 19,390 separations.

  • Employers did not provide a reason for 15 percent of the layoffs, a total of 14,807 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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