Mass Layoffs In February 2007

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MASS LAYOFFS IN FEBRUARY 2007

In February, employers took 1,280 mass layoff actions, seasonally ad-
justed, as measured by new filings for unemployment insurance benefits
during the month, the Bureau of Labor Statistics of the U.S. Department
of Labor reported today. Each action involved at least 50 persons from
a single establishment; the number of workers involved totaled 143,977,
on a seasonally adjusted basis. The number of mass layoff events in-
creased by 43 from January, and the number of associated initial claims
rose by 17,609. During February, 419 mass layoff events were reported in
the manufacturing sector, seasonally adjusted, resulting in 64,072 initial
claims. Compared with the prior month, mass layoff activity in manufac-
turing increased by 30 events and by 12,931 initial claims. (See table 1.)

The national unemployment rate was 4.5 percent in February, essentially
unchanged from 4.6 percent the prior month and down from 4.8 percent a year
earlier. Total nonfarm payroll employment increased by 97,000 over the month
and by 2.0 million over the year.

Industry Distribution (Not Seasonally Adjusted)

The 10 industries reporting the highest numbers of mass layoff initial
claims, not seasonally adjusted, accounted for 33 percent of the total ini-
tial claims in February. The industry with the highest number of initial
claims was temporary help services (with 5,581), followed by automobile manu-
facturing (5,561), and motorcycle, bicycle, and parts manufacturing (3,043).
Together, these three industries accounted for 16 percent of all initial claims
due to mass layoffs during the month. (See table A.)

The manufacturing sector accounted for 29 percent of all mass layoff
events and 42 percent of all related initial claims filed in February; a
year earlier, manufacturing made up 29 percent of events and 37 percent of
initial claims. In February 2007, the number of manufacturing claimants
was highest in transportation equipment manufacturing (14,510, mostly in
motor vehicle manufacturing), followed by wood product manufacturing
(4,497) and food manufacturing (4,188). (See table 3.)

Construction accounted for 22 percent of mass layoff events and 15
percent of initial claims in February, largely from specialty trade
contractors. Administrative and waste services comprised 12 percent of
events and 11 percent of initial claims filed over the month, with the
majority of layoffs in temporary help services. Eight percent of all
mass layoff events and 7 percent of related initial claims filed were
from retail trade, primarily from general merchandise stores. Transpor-
tation and warehousing made up 4 percent of events and 5 percent of as-
sociated initial claims, primarily from the school and employee bus
transportation industry.

- 2 -

Table A. Industries with the largest number of mass layoff initial claims
in February 2007
---------------------------------------------------------------------------
| | February peak
Industry |Initial|------------------------
| claims| |
| | Year | Initial claims
------------------------------------------|-------|------|-----------------
Temporary help services ..................| 5,581 | 2001 | 18,893
Automobile manufacturing .................| 5,561 | 2001 | 13,977
Motorcycle, bicycle, and parts | | |
manufacturing ..........................| 3,043 | 2007 | 3,043
School and employee bus transportation ...| 2,618 | 2004 | 2,997
Heavy duty truck manufacturing ...........| 2,602 | 2005 | 2,627
Commercial building construction .........| 2,137 | 2007 | 2,137
Professional employer organizations ......| 2,008 | 2001 | 3,241
Highway, street, and bridge construction .| 1,841 | 2003 | 3,316
Farm labor contractors and crew leaders ..| 1,813 | 2000 | 12,516
Food service contractors .................| 1,792 | 2007 | 1,792
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On a not seasonally adjusted basis, the number of mass layoff events
in February, at 935, was up by 216 from a year earlier, and the number of
associated initial claims increased by 20,141 to 86,696. (See table 2.)
The February level of all mass layoff initial claims, on a not seasonally
adjusted basis, was the highest for that month since 2003. The largest
over-the-year increases in initial claims were reported in transportation
equipment manufacturing (+5,397), wood product manufacturing (+3,267), and
specialty trade contractors (+3,198). The largest over-the-year decreases
in mass layoff initial claims were reported in apparel manufacturing (-1,358)
and motion picture and sound recording industries (-1,268).

Geographic Distribution (Not Seasonally Adjusted)

Among the four census regions, the highest number of initial claims in
February due to mass layoffs was in the Midwest, 26,603. Transportation
equipment manufacturing and specialty trade contractors industries together
accounted for 37 percent of all mass layoff initial claims in that region
during the month. The West had the second largest number of initial claims
among the regions, 23,971, followed by the Northeast, 18,272, and the South,
17,850. (See table 5.)

The number of initial claimants in mass layoffs increased over the year
in all four regions--the Midwest (+9,981), the Northeast (+6,020), the South
(+2,909), and the West (+1,231). Six geographic divisions had over-the-year
increases in the numbers of initial claims associated with mass layoffs, with
the largest increases in the East North Central (+10,662), the Middle Atlantic
(+7,402), and the South Atlantic (+2,745). The division with the largest over-
the-year decrease was New England (-1,382).