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Extended Mass Layoff Actions in California - 2007

  First Quarter 2007
  Second Quarter 2007
  Third Quarter 2007
  Fourth Quarter 2007
First Quarter 2007

In the first quarter of 2007, California employers reported 300 mass layoff actions that resulted in the separation of 39,170 workers from their jobs for at least 31 days.  These preliminary data are collected through the federal Mass Layoff Statistics (MLS) Program and released by the U.S. Department of Labor's Bureau of Labor Statistics (BLS).

The over-the-year decline in separations was most notable in Construction, Manufacturing, and Retail Trade.  Compared to the previous first quarter (January-March) of 2006 there was an increase of 116 layoff events and 7,544 separations.

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 and affecting 872 worker separations, which is lower than previous year.

Other significant trends include:

  • Of the employers who anticipated recalling workers, 17 percent expected to extend the offer to all affected workers.  This is a lower percentage recall rate from the previous year, which was 30 percent.

  • Permanent worksite closures occurred in 2 percent of all events, affecting 738 workers.  This is a lower number of job separations resulting from permanent closures compared to the previous first quarter (January-March) of 2006, which was 5 percent of all layoff events and affecting 1,150 employees.
The most common reasons given for the verified layoffs are as follows:

  • Thirty-six percent of the employers reported completed contracts as the reason for the layoffs resulting in 9,772 separations.

  • Eighteen percent of the employers reported seasonal work as the reason for the layoffs resulting in 10,882 separations.

  • Ten percent of employers reported layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulting in 4,402 separations.

  • Two percent of employers reported business ownership change as the reason for layoffs resulting in 1,587 separations.
A number of improvements in collection of Extended Mass Layoffs were started in the first quarter 2007.  The data on economic reasons have been enhanced by developing more descriptive reason titles and clarifying definitions. Four new reasons for layoffs are added:

  • domestic competition
  • excess inventory/saturated marketplace
  • hazardous work environment
  • cost control/cost cutting/increase profitability
Further information on the New Reasons Classification can be found online.

The California Employment Development Department's Labor Market Information Division operates the Mass Layoff Statistics Program through a cooperative agreement with the BLS.  You may find out more information about the MLS Program online.

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