Sample 1 - State of California
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Extended Mass Layoff Actions in California - 2011 (Continued)


  First Quarter 2011
  Second Quarter 2011
  Third Quarter 2011
  Fourth Quarter
Third Quarter 2011

In the third quarter (July-September) of 2011, California employers reported 464 extended mass layoff events that resulted in the separation of 77,308 workers from their jobs for at least 31 days. During the third quarter of 2011, California employers reported 39 more mass layoff actions than in the third quarter of 2010 (425) and 13,678 more separations (63,630). During the most recent reporting period, California's 464 mass layoff events represented 38 percent of the nation's 1,226 reported layoff events and the 77,308 separations represented 42 percent of the nation's 184,493 reported separations. The industries experiencing the greatest job losses were:

  • The administrative and waste services industry, with 111 extended mass layoff events resulting in 19,501 separations;

  • The information industry, with 51 extended mass layoff events resulting in 15,931 separations;

  • The manufacturing industry, with 47 extended mass layoff events resulting in 8,679 separations;

  • The construction industry, with 83 extended mass layoff events resulting in 6,511 separations; and,

  • The professional and technical service industry, with 38 extended mass layoff events resulting in 6,167 separations.

Extended mass layoff events 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 one percent of the non-seasonal layoff events, which resulted in 235 worker separations. During the current report period, movement of work actions reported by California employers were one percentage point lower than actions reported in the third quarter of 2010 (two percent), accounting for 1,186 fewer separations (1,421).

Other significant trends include:

  • Of the employers who anticipated recalling workers, 50 percent expected to extend the offer to all affected workers. This recall rate is 3 percentage points higher than the 47 percent rate reported for the third quarter of 2010.
  • Permanent worksite closures occurred in six percent of all events and affected 6,486 workers. This worksite closure rate is two percent higher than the rate for the third quarter of 2010 (8 percent) and had 8 fewer separations (6,494). Permanent worksite closures occurred in six percent of all events and affected 6,486 workers. This worksite closure rate is two percentage points lower than the rate for the third quarter of 2010 (8 percent), though the number of separations were nearly the same with only eight more separations (6,494) in the earlier quarter.

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

  • Fifty-four percent of the employers reported "contract completion" as the reason for layoffs that resulted in 40,830 separations.

  • Eight percent of the employers reported "seasonal" as the reason for layoffs that resulted in 6,525 separations.

  • Seven percent of employers reported “internal company restructuring” which includes "bankruptcy", "business ownership change", "financial difficulty" and/or "reorganization". These restructurings resulted in 8,888 separations.

  • Five percent of the employers reported "refused" as the reason for layoffs that resulted in 6,392 separations.

  • Five percent of employers reported "slack work/ insufficient demand/ non-seasonal business slow down" as the reason for layoffs which resulted in 2,030 separations.

  • Four percent of the employers reported "reorganization or restructuring" as the reason for layoffs that resulted in 4,259 separations.

  • Employers did not provide a reason for 13 percent of the layoffs, which resulted in a total of 8,638 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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