December 31, 2008

U.S. construction industry accounts for large share of mass layoffs

Richard Gilbert

staff writer

The U.S. construction industry accounted for a large share of mass layoffs in November, while workers in highway, bridge and street construction made a number of unemployment claims.

The Bureau of Labor Statistics of the U.S. Department of Labor defines a mass layoff as an action that involves at least 50 persons from a single employer.

The labor department reported that 2,328 employers undertook mass layoffs in November, resulting in a staggering 224,079 people losing their job.

“The number of mass layoff events in November increased by 188 from the prior month, while the number of associated initial claims decreased by 8,389,” said the report.

“Over the year, the number of mass layoff events increased by 999, and the number of associated initial claims increased by 84,408.”

According to the department, both average weekly layoffs and initial claimants reached their highest November levels in program history.

“Eight major industry sectors reported program highs in terms of average weekly initial claimants for the month of November: accommodation and food services; construction; finance and insurance; real estate and rental and leasing; retail trade; transportation and warehousing; utilities; and wholesale trade,” said the report.

“The construction industry accounted for 15 per cent of mass layoff events and 12 per cent of associated initial claims during the month.”

The industry with the largest number of initial claims in November was temporary help services (14,430), followed by highway, street, and bridge construction (12,563).

There were 874 mass layoffs reported in the manufacturing sector in November.

However, when that number is seasonally adjusted, this resulted in 98,408 initial claims.

Over the month, mass layoffs in manufacturing increased by 239, and initial claims increased by 11,005.

It was the fourth consecutive over-the-month increase for both sectors.

From the start of the recession in December 2007 and through until November 2008, the total number of mass layoffs was 20,712 and the number of initial claims was 2,108,743.

In November, total employment decreased by 533,000 over the month and by 1,870,000 from a year earlier.

The national unemployment rate was 6.7 percent in November, seasonally adjusted, up from 6.5 percent the prior month and from 4.7 percent a year earlier.

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