Mass Layoffs In December 2007 And Annual Totals For 2007

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MASS LAYOFFS IN DECEMBER 2007 AND ANNUAL TOTALS FOR 2007


In December, employers took 1,433 mass layoff actions, seasonally
adjusted, 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 employer; the number of workers involved totaled 141,750 on a
seasonally adjusted basis. December layoff events were the highest since
September 2005 (which reflected the impact of Hurricane Katrina) and were
the highest for the month of December since 2002. The number of mass layoff
events in December 2007 increased by 104 from the prior month, while the num-
ber of associated initial claims increased by 2,079. In December, 462 mass
layoff events were reported in the manufacturing sector, seasonally adjusted,
resulting in 58,108 initial claims. Over the month, mass layoff activity in
manufacturing increased by 48 events, and initial claims increased by 1,143.
(See table 1.)

For all of 2007, the total numbers of mass layoff events, at 15,493, and
initial claims, at 1,598,875, were higher than in 2006, when the totals were
13,998 and 1,484,391, respectively. The finance and insurance industry
registered series highs for mass layoff events and initial claims in 2007.
This reflected increased layoffs in the credit intermediation and related
activities industry, which includes real estate credit, commercial banking,
and mortgage and nonmortgage lending brokers. For all of 2006, layoff events
had hit a series low, and the number of initial claimants was the lowest
reported since 1996.

The national unemployment rate was 5.0 percent in December, seasonally
adjusted, up from 4.7 percent in the prior month and from 4.4 percent a year
earlier. Total nonfarm payroll employment increased by 18,000 in December
and by 1.3 million from a year earlier.

Industry Distribution (Not Seasonally Adjusted)

The 10 industries reporting the highest numbers of mass layoff initial
claims, not seasonally adjusted, accounted for 35 percent of all such claims
in December. The industry with the highest number of initial claims was
highway, street, and bridge construction with 14,684, followed by food ser-
vice contractors (12,518), school and employee bus transportation (11,362),
and temporary help services (9,745). Together, these four industries ac-
counted for 22 percent of all initial claims due to mass layoffs during the
month.