Thumbs Up: DOL reports May New Unemployment Claims Lowest since 2007

DOL reported today that in May, employers took 1,380 mass layoff actions involving 130,191 workers. Mass layoff events decreased by 8 from April, and associated initial claims decreased by 5,409. Year-to-date events and initial claims recorded their lowest figures since 2007.  Read the full report.

Technical information: (202) 691-6392  *  mlsinfo@bls.gov  * www.bls.gov/mls
Media contact:         (202) 691-5902  *  PressOffice@bls.gov


                               MASS LAYOFFS -- MAY 2012


Employers took 1,380 mass layoff actions in May involving 130,191 workers, seasonally
adjusted, as measured by new filings for unemployment insurance benefits during the
month, the U.S. Bureau of Labor Statistics reported today. Each mass layoff involved
at least 50 workers from a single employer. Mass layoff events in May decreased by 8
from April, and the number of associated initial claims decreased by 5,409. Year-to-
date mass layoff events (6,768) and initial claims (636,484) both recorded their lowest
figures since 2007. In May, 264 mass layoff events were reported in the manufacturing
sector, seasonally adjusted, resulting in 29,675 initial claims. (See table 1.)

The national unemployment rate was 8.2 percent in May, essentially unchanged from the
prior month but down from 9.0 percent a year earlier. Total nonfarm payroll employment
increased by 69,000 over the month and by 1,782,000 over the year.

Industry Distribution (Not Seasonally Adjusted)

The number of mass layoff events in May was 1,201, not seasonally adjusted, resulting
in 109,259 initial claims for unemployment insurance. (See table 2.) Over the year, the
number of average weekly mass layoff events decreased by 42 to 300, while associated
average weekly initial claims decreased by 2,663 to 27,315. Thirteen of the 19 major
industry sectors in the private economy reported over-the-year decreases in average
weekly initial claims, with the largest decrease occurring in manufacturing. (See
table 3.) In May 2012, the six-digit industry with the largest number of private
nonfarm initial claims was food service contractors. (See table A.)


Table A. Six-digit NAICS industries with the largest number of mass layoff initial claims
in May 2012, private nonfarm, not seasonally adjusted

                  Industry                                               May peak    
                                                   Initial claims     Year    Initial claims
                                                                                            
Food service contractors ........................      10,326          2009       11,216 
Temporary help services (1) .....................       6,857          2002       16,992 
Child day care services .........................       5,962          2011        6,616 
Motion picture and video production .............       4,131          1999        8,985 
Department stores, except discount ..............       2,868          2009        3,379 
School and employee bus transportation ..........       2,632          2008        6,323 
Discount department stores ......................       2,390          2002        3,981 
Light truck and utility vehicle manufacturing ...        (2)           2009        3,570 
Professional employer organizations (1) .........       1,517          2009        5,898 
Industrial building construction ................       1,423          2003        3,463 
                                                                             
   1 See the Technical Note for more information on these industries.
   2 Data do not meet BLS or state agency disclosure standards.


In May 2012, the manufacturing sector accounted for 17 percent of mass layoff events and
19 percent of associated initial claims in the private economy. Within manufacturing,
the numbers of mass layoff claimants were highest in food and in transportation equipment.
Sixteen of the 21 manufacturing subsectors experienced over-the-year decreases in average
weekly initial claims, with the largest decrease occurring in food manufacturing. (See
table 3.)

Geographic Distribution (Not Seasonally Adjusted)

Among the census regions, the South registered the largest number of initial claims in
May. Two of the 4 regions experienced over-the-year decreases in average weekly initial
claims, with the largest decrease occurring in the South. (See table 4.)

Among the states, California recorded the highest number of mass layoff initial claims
in May, followed by Pennsylvania, Illinois, New York, and Texas. Thirty-four states and
the District of Columbia experienced over-the-year decreases in average weekly initial
claims, led by Alabama, Mississippi, Ohio, and Florida. (See table 4.)

Note

The monthly data series in this release cover mass layoffs of 50 or more workers
beginning in a given month, regardless of the duration of the layoffs. For private
nonfarm establishments, information on the length of the layoff is obtained later
and issued in a quarterly release that reports on mass layoffs lasting more than 30
days (referred to as "extended mass layoffs"). The quarterly release provides more
information on the industry classification and location of the establishment and on
the demographics of the laid-off workers. The monthly data series in this release are
subjected to average weekly analysis, which mitigates the effect of differing lengths
of months. See the Technical Note for more detailed definitions and for a description
of average weekly analysis.

____________
The Mass Layoffs news release for June is scheduled to be released on Friday,
July 20, 2012, at 10:00 a.m. (EDT).



Mass Layoffs Technical Note
Table 1. Mass layoff events and initial claimants for unemployment insurance, June 2008 to May 2012, seasonally adjusted
Table 2. Mass layoff events and initial claimants for unemployment insurance, June 2008 to May 2012, not seasonally adjusted
Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, not seasonally adjusted
Table 4. Region and state distribution: Mass layoff events and initial claimants for unemployment insurance, not seasonally adjusted
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