Wednesday, October 26, 2011

September layoffs: mass layoffs down 28 percent in 2011

Mass layoff events fell 28 percent to 75 events during the first nine months of 2011 in Colorado. There were 105 mass layoff events during the same period last year. According to a new report released yesterday by the U.S. Bureau of Labor Statistics, there were 7 mass layoff events during September 2011, which is down 30 percent from the 10 events reported during September of last year.

Monthly mass layoff events grew rapidly after October 2008 in Colorado, and have gradually lessened since early 2010.



Nationally, mass layoff events increased 29 percent from 920 during September 2010 to 1189 during September of this year.

In the year-to-date Colorado total for September, mass layoffs have now fallen two years in a row after peaking at 117 mass layoffs during the eight months of 2009. The second graph shows year-to-date totals for September since 2001:



Mass layoffs were rare from 2004 through most of 2008.

Overall, the most recent mass layoffs data suggests that the employment situation continues to stabilize. New layoffs continue to lessen, and as we've seen in the most recent employment data, September 2011 showed some of the strongest year-over-year growth in employment in 36 months.

New claims for unemployment insurance

New claims for unemployment insurance in Colorado fell year over year by 17 percent to 680 in September 2011. There were 827 new claims during September of last year. New claims for unemployment insurance have also gradually fallen since early 2010. Nationally, new claimants rose 50.9 percent during the same period.

In year-to-date totals for new unemployment claims in Colorado through September, totals are down 22 percent year over year. There were 7,626 new claims during the first nine months of 2011, compared to 9,897 new claims during the same period last year. In the year-to-date total for September, new claims for unemployment insurance have now fallen two years in a row after peaking at 11,8659 claims during the first nine months of 2009. The last graph shows year-to-date totals for September since 2001:



See the employment data archive for more on September's job creation.

The Mass Layoff Statistics (MLS) program collects reports on mass layoff actions that result in workers being separated from their jobs. Monthly mass layoff numbers are from establishments which have at least 50 initial claims for unemployment insurance (UI) filed against them during a 5-week period. Extended mass layoff numbers (issued quarterly) 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.