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Extended Mass Layoff Actions in California - 2010 (Continued)

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

In the third quarter (July-September) of 2010, California employers reported 425 mass layoff events that resulted in the separation of 63,630 workers from their jobs for at least 31 days. This is a decrease of 260 mass layoff events and 53,416 separations compared to the third quarter of 2009. California's total number of 425 mass layoff events was 33 percent of the nation's 1,297 reported layoff events and the 63,630 separations were 34 percent of the nation's 187,091 reported separations. The most notable job losses were in 'Information', 'Retail Trade', 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 1,421 worker separations. This is a decrease of 1 percent of events as reported in the third quarter of 2009 with a decrease of 1,001 separations.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 47 percent expected to extend the offer to all affected workers. This recall rate is higher than the previous year's rate by 20 percent.

  • Permanent worksite closures occurred in 8 percent of all events and affected 6,494 workers. This is 1 percent lower than the 9 percent reported in third quarter of 2009 that resulted in 11,656 separations, a decrease of 5,162 separations.

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

  • Twenty-five percent of the employers reported layoffs due to "contract completion" as the reason for layoffs that resulted in 15,420 separations.

  • Sixteen percent of employers reported layoffs due to "slack work/ insufficient demand/ non-seasonal business slow down", which resulted in 8,107 separations.

  • Eleven percent of the employers reported layoffs due to "Seasonal", as the reason for layoffs that resulted in 5,661 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 11,090 separations.

  • Employers did not provide a reason for 18 percent of the layoffs, a total of 13,286 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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