Wednesday, November 28, 2012

First-time unemployment claims down 7 percent in Colorado during 2012


Mass layoff events fell 3.5 percent to 82 events during the first ten months of 2012 in Colorado. There were 85 mass layoff events during the same period last year. According to the October report released last week by the U.S. Bureau of Labor Statistics, there were 11 mass layoff events during October 2012 alone, which was up 10 percent from the 10 events reported during October of last year. Comparing the first ten months of each year, both total mass layoffs and first time unemployment have decreased each year since 2009.

The first graph shows that monthly mass layoff events grew rapidly after October 2008 in Colorado, and have gradually declined since.



Nationally, mass layoff events increased 3.7 percent from 1,101 during October 2011 to 1,142 during October of this year.

In the year-to-date total for October in Colorado, mass layoffs have now fallen three years in a row after peaking at 150 mass layoffs during the first ten months of 2009. The second graph shows year-to-date totals for October since 2002:


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, but as we've seen in the most recent employment data for Colorado, job growth continues to disappoint and total employment totals remain well below 2008's peak totals.

New jobless claims

New claims for unemployment insurance in Colorado rose year over year in by 9.6 percent to 957 during October 2012. There were 873 new claims during October of last year. Nationally, new claims for unemployment insurance were also up year over year, rising by 13.3 percent from October 2011 to October 2012. The third graph shows no obvious trend in recent months.



In year-to-date totals for new unemployment claims through October, totals are down 7.1 percent year over year in Colorado. There were 7,893 new claims during the first ten months of 2012, compared to 8,499 new claims during the same period last year. In the year-to-date total for October, new claims for unemployment insurance have now fallen three years in a row after peaking at 13,419 claims during the first ten months of 2009. The last graph shows year-to-date totals for October since 2002:



Definitions:
Initial claimant. A person who files any notice of unemployment to initiate a request either for a determination of entitlement to and eligibility for compensation, or for a  subsequent period of unemployment within a benefit year or  period of eligibility. 
Mass layoff event. Fifty or more initial claims for unemployment insurance benefits filed against an employer during a 5-week period, regardless of duration.