Essential Estrogen

Mass layoffs -- employment terminations that involve at least 50 people from a single employer -- were up nationally in February, and rose to their highest level since September 2005. In Iowa, however, mass layoffs only increased slightly from the same month a year ago.

In February, employers took 1,672 mass layoff actions, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, according to reports from the U.S. Department of Labor's Bureau of Labor Statistics. The total number of workers involved was 177,374 (seasonally adjusted). February layoff events and associated initial claimants were the highest since September 2005 (which reflected the impact of Hurricane Katrina) and were the highest for the month of February since 2003.

The number of mass layoff events for the month increased by 234 from the prior month, while the number of associated initial claims increased by 33,263. In February, 529 mass layoff events were reported in the manufacturing sector, resulting in 66,913 initial claims. Over the month, mass layoff activity in manufacturing increased by 102 events, and initial claims increased by 11,425.

Iowa recently experienced a small drop in its seasonally adjusted unemployment rate (from 3.8 in December 2007 to 3.6 in January 2008). In terms of mass layoffs, Iowa also currently appears to be faring better than many other states. In February, the Bureau is reporting 16 mass layoff events in Iowa. That's on par with February 2007 when the state experienced 14 such events. It is also a decrease of 10 events from the January 2008 figure of 26.

The 16 events during February in Iowa resulted in 1,885 initial claimants for unemployment insurance. This is down from January 2008 (3,163) and December 2007 (6,337).

California recorded the highest number of initial claims filed due to mass layoff events in February (32,747), followed by Pennsylvania (8,204), Florida (6,572), Illinois (6,344), and New York (5,912). These five states accounted for 56 percent of all mass layoff events and 50 percent of all initial claims for unemployment insurance in February.

The number of initial claimants in mass layoffs increased over the year in 35 states and the District of Columbia, due, in part, to a calendar effect. Thirty-two states and the District of Columbia reported over-the-year increases in average weekly initial claims associated with mass layoffs, led by California (+1,597) and Florida (+660). For both California and Florida, the largest increases in initial claims occurred in administrative and support services. States with the largest over-the-year decreases in average weekly claims were Pennsylvania (-1,091), Wisconsin (-889), Michigan (-751), and Virginia (-721).