Mass layoffs decline in June

In June 2005, employers took 1,175 mass layoff actions, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Each action involved at least 50 persons from a single establishment, and the number of workers involved totaled 127,887, on a seasonally adjusted basis. The number of layoff events fell by 21 from May, and the number of associated initial claims decreased by 884.

In the manufacturing sector, 347 mass layoff events were reported, which resulted in 55,820 initial claims. The number of mass layoff events was somewhat lower than a month earlier, while the number of initial claims was higher.

The manufacturing sector accounted for 19 percent of all mass layoff events and 27 percent of all initial claims filed in June 2005. A year earlier, manufacturing comprised 16 percent of events and 20 percent of initial claims. Within manufacturing, the number of claimants in June 2005 was highest in transportation equipment (12,268, mostly automotive-related), followed by food processing (4,245), and electrical equipment and appliances (4,010).