Sample 1 - State of California
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Extended Mass Layoff Actions in California - 2012


  First Quarter 2012
  Second Quarter 2012
  Third Quarter 2012
  Fourth Quarter 2012
First Quarter 2012

The Mass Layoff Statistics (MLS) Program operates through a cooperative agreement with the Federal Bureau of Labor Statistics (BLS) to identify and describe the impact of major permanent job cutbacks. The MLS program collects reports on mass layoff actions that result in workers being separated from their jobs.

Mass Layoff Events
Mass Layoff Event data are from establishments which have at least 35 initial claims for unemployment insurance (UI) filed against them during a 5-week period. Extended Mass Layoff data are from a subset of such establishments—where private sector nonfarm employers indicate that 50 or more workers were separated from their jobs for at least 31 days.

In the first quarter (January-March) of 2012, California employers reported 343 extended mass layoff events that resulted in the separation of 84,440 workers from their jobs for at least 31 days. During the first quarter of 2012, California employers reported 51 fewer mass layoff actions than in the first quarter of 2011 (394) and 25,878 more separations (58,562). During the most recent reporting period, California's 343 mass layoff events represented 32 percent of the nation's 1,077 reported layoff events and the 84,440 separations represented 46 percent of the nation's 182,101 reported separations.



The industries experiencing the greatest job losses were:

  • The administrative and support services industry*, with 64 extended mass layoff events resulting in 22,768 separations;

  • The information industry, with 38 extended mass layoff events resulting in 16,043 separations;

  • The retail trade industry, with 26 extended mass layoff events resulting in 10,648 separations;

  • The professional and technical service industry, with 28 extended mass layoff events resulting in 7,628 separations;

  • The construction industry, with 62 extended mass layoff events resulting in 7,094 separations; and

  • The manufacturing industry, with 40 extended mass layoff events resulting in 6,105 separations.


Technical Note
* Beginning with first quarter 2012 data, employers in California identified as having mass layoff events from the administrative and support services (NAICS 561) industry subsector are randomly selected to participate in the employer interview. Sampling weights are applied to data collected from these employer interviews, which represent responses for those employers not selected for employer contact. These data are subject to sampling errors which can result from the variation that occurs by chance because a sample is surveyed rather than the entire universe of NAICS 561 employers in California identified as having layoff events.




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 two percent of the non-seasonal layoff events, which resulted in 420 worker separations, during the current report period. Year-over, California employers took one percentage point more than the events in the first quarter of 2011 (1 percent), while accounting for 1,113 fewer separations (1,533).

Other significant trends include:

  • Of the employers who anticipated recalling workers, 46 percent expected to extend the offer to all affected workers. This recall rate is four percentage points less than the 50 percent rate reported for the first quarter of 2011.
  • Permanent worksite closures occurred in seven percent of all events and affected 6,364 workers. This worksite closure rate is two percentage points less than the rate for the first quarter of 2011 (9 percent) and had 6,575 fewer separations (12,939).

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

  • Forty-seven percent of the employers reported "contract completion" as the reason for layoffs that resulted in 33,037 separations.

  • Fourteen percent of the employers reported "seasonal" as the reason for layoffs that resulted in 10,737 separations.

  • Ten percent of employers reported “internal company restructuring” which includes "bankruptcy," "business ownership change," "financial difficulty," and/or "reorganization." These restructurings resulted in 8,082 separations.

  • Six percent of the employers reported "refused" as the reason for layoffs that resulted in 2,677 separations.

  • Five percent of employers reported "cost control/cost cutting/increase profitability" as the reason for layoffs which resulted in 3,175 separations.

  • Two percent of the employers reported "business ownership change" as the reason for layoffs that resulted in 3,014 separations.

  • Employers did not provide a reason for 10 percent of the layoffs, which resulted in a total of 5,438 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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