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Extended Mass Layoff Actions in California - 2010 (Continued)

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

In the fourth quarter (October-December) of 2010, California employers reported 454 mass layoff events that resulted in the separation of 79,491 workers from their jobs for at least 31 days. This is a decrease of 124 mass layoff events and 23,330 separations compared to the fourth quarter of 2009. California's total number of 454 mass layoff events was 24 percent of the nation's 1,910 reported layoff events and the 79,491 separations were 27 percent of the nation's 295,571 reported separations. The most notable job losses were in 'Construction', 'Manufacturing', and 'Information'.

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 2,754 worker separations. This is the same percent of events as reported in the fourth quarter of 2009 with an increase of 2,155 separations.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 53 percent expected to extend the offer to all affected workers. This recall rate is higher than the previous year's rate by 25 percent.

  • Permanent worksite closures occurred in 8 percent of all events and affected 7,392 workers. This is 1 percent lower than the 9 percent reported in fourth quarter of 2009 that resulted in 7,422 separations, a decrease of 30 separations.

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

  • Twenty-nine percent of the employers reported layoffs due to "contract completion" as the reason for layoffs that resulted in 18,101 separations.

  • Sixteen percent of the employers reported layoffs due to "Seasonal", as the reason for layoffs that resulted in 15,437 separations.

  • Fourteen percent of employers reported layoffs due to "slack work/ insufficient demand/ non-seasonal business slow down", which resulted in 5,558 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 11,447 separations.

  • Employers did not provide a reason for 18 percent of the layoffs, a total of 18,912 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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