U.S. Employment Restructuring Report Q3 2011

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The employment restructuring report is compiled by Kelly Services. It provides a timely review of economic, labor and hiring conditions in the relevant markets, with a detailed focus on the most recent data regarding mass layoffs and restructuring. The report is compiled utilizing publicly available data from official, private and not-for-profit organizations. Published on a quarterly basis, the employment restructuring report is available in separate editions for the United States and European Union.

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U.S. Employment Restructuring Report Q3 2011

  1. 2011employmentrestructuring 3reportu n i t e d s tat e s e d i t i o n
  2. 2 | employment restructuring report | united states edition Q3 2011contents summary p/3 metHodology notes: the employment 01 restructuring report is compiled using publicly available data from official, us labor market trends p/4 private and not-for-profit organizations. in general, 02 this report utilizes the Bls definition for ‘mass layoffs’, us regional labor trends p/7 (establishments which have at least 50 initial claims for 03 unemployment insurance filed against them during most heavily impacted sectors p/9 a 5-week period). Job creations and layoffs are 04 associated with their date of announcement, not the reasons for announced job losses p/12 scheduled completion date. 05 disclaimer: us labor market outlook p/14 This information is provided with the understanding 06 that it is not guaranteed to be correct or complete major announced us job layoffs p/16 and conclusions drawn from such information are the sole responsibility of about this report p/28 the user. Attempts have been made to ensure that this data or documentation is accurate and reliable; Kelly Services does not assume liability for any damages caused by inaccuracies in this data or documentation. Kelly Services grapHs makes no warranty, expressed or implied, US mass layoffs p/5 as to the accuracy, completeness, US job openings p/6 or utility of this Announced job layoffs by US region p/8 information, nor does the fact of distribution Announced US job layoffs by industry sector p/10 constitute a warranty. US job openings by industry sector p/11 Main reasons for job layoffs in the US p/13 Chicago Fed National Activity Index, Three Month Moving Average p/15
  3. Home3 | employment restructuring report | united states edition Q3 2011 contents summary 01 us laBor market trends 02 us regional laBor trends 03 most Heavilysummary ➔ The United States labor market continues an anemic pressure on unemployment in coming months. The month. But recent shocks to the economy and share to prevent unemployment remaining flat for some time. impacted sectors 04 reasons for announced trend, with employment unemployment rate has held market volatility have JoB losses growth struggling to remain steady since April at slightly unnerved both investors There is a very real possibility 05 us laBor market outlook positive. Despite signs of more than 9 percent, and the and consumers. The August that job layoffs will increase 06 maJor life earlier in the year, the US headwinds now hitting the figures, revised to 57,000 jobs as the economy undergoes announced us JoB layoffs labor market has reverted to a US economy will likely see it created, made it clear that any a difficult patch, and as aBout tHis prolonged period of sub-par stuck in a holding pattern until earlier optimism about jobs businesses that have withstood report job growth. job creation gets moving to a recovery was premature. the 2009 downturn and its point consistently upward of aftermath, finally succumb to During the second quarter 150,000/month. The debt-ceiling standoff, pressure to downsize. of 2011, real GDP increased at European sovereign debt an annual rate of 1.3 percent The number of layoffs concerns and even the Ultimately, there is the and the labor market remained recorded in the second Japanese earthquake have prospect that the economy largely unchanged, with quarter totaled almost 470,000 all conspired to derail hopes could lurch back into recession layoffs and job openings and while this was up slightly of a fledgling recovery. but that will probably depend holding to the pattern of on the first quarter, it is about on how markets absorb the previous months. 25,000 less than a year ago. Growth forecasts for the rest global debt situation. While of 2011 and into 2012 have in the US, the debt crisis has The economic recovery in the Employment growth during been lowered to a point that at least been subdued, in US continues but is extremely the second quarter averaged cannot absorb sufficient jobs Europe, it’s still a live issue. fragile, and this will place real fewer than 100,000 jobs/ tHe economic recovery in tHe us continues But is extremely fragile, and tHis will place real pressure on unemployment in coming montHs.
  4. Home4 | employment restructuring report | united states edition Q3 2011 contents summary 01 us laBor market trends 02 us regional laBor trends01 03 most Heavily ➔ The number of layoffs shows that the manufacturing impacted sectors ticked-up somewhat during sector recorded exceptional 04 reasons for announced the second quarter of 2011, lows in both the number of JoB losses 05 us laBor increasing by approximately layoff events and the number market outlookus laBor 52,000 to 469,760 of workers separated. 06 maJor announced earlier, and half a million revisions of the US economic us JoB layoffsmarket The pattern of layoffs has remained relatively stable at The national unemployment rate stood at 9.1 percent, with higher than in the trough in growth figures can only mean aBout tHis reporttrends under 500,000 since the start growth in payrolls still falling mid-2009. one thing – the unemployment rate will ratchet higher. This is of 2010, having seen a steady short of the long term trend. Since February, the level of The August data showed just hard to bear at any time, but decline from the peak of more job openings has remained 57,000 job gains however a jobless rate approaching 10 than 800,000 at the height of largely flat as the economy the jobs bill proposal has at percent approaching the 2012 the economic recession. has pulled back somewhat least ensured the issue has presidential election campaign from the more robust level of The figures from the Bureau a renewed urgency in US would be political poison. activity that prevailed in 2010. of Labor Statistics show that political discourse. Subdued domestic activity and All the evidence suggests that not only are fewer workers nervousness about debt, both The number of job openings more will need to be done to being impacted by layoffs, but in the US and Europe, mean across the US stood at 3.1 stimulate domestic activity and the actual number of layoff that private sector demand for million at the end of June, generate jobs growth, at least “events” is also declining. labor is lackluster. scarcely changed from the until the worst of the financial The breakdown of the previous month but about With job hiring already in the crisis is over and cyclical numbers into industry sectors 250,000 more than a year doldrums, further downward growth returns. 
  5. 400000 Home5 | employment restructuring report | united states edition Q3 2011 contents summary 01 us laBor 200000 market trends 2005/Q1 2005/Q3 2006/Q1 2006/Q3 2007/Q1 2007/Q3 2008/Q1 2008/Q3 2009/Q1 2009/Q3 2010/Q1 2010/Q3 2011/Q1 2005/Q2 2005/Q4 2006/Q2 2006/Q4 2007/Q2 2007/Q4 2008/Q2 2008/Q4 2009/Q2 2009/Q4 2010/Q2 2010/Q4 2011/Q2 02 us regional laBor trends 03 most Heavily impacted sectors 04 reasons for announced us mass layoffs (Q1 2005 to Q2 2011) JoB losses 05 us laBor market outlook 1,000,000 06 maJor announced us JoB layoffs aBout tHis 800,000 report 600,000 400,000 200,000 2005/Q1 2005/Q2 2005/Q3 2005/Q4 2006/Q1 2006/Q2 2006/Q3 2006/Q4 2007/Q1 2007/Q2 2007/Q3 2007/Q4 2008/Q1 2008/Q2 2008/Q3 2008/Q4 2009/Q1 2009/Q2 2009/Q3 2009/Q4 2010/Q1 2010/Q2 2010/Q3 2010/Q4 2011/Q1 2011/Q2 Source: US Bureau of Labor Statistics tHe august data sHowed Just 57,000 JoB gains However tHe JoBs Bill proposal Has at least ensured tHe issue Has a renewed urgency in us political discourse.
  6. 1000000 Home contents 5000006 | employment restructuring report | united states edition Q3 2011 summary 0 01 us laBor market trends March 2008 2008September 2008 FebruaryApril 2009July 20092009 2009 FebruaryApril 2010July 201020102010 FebruaryApril 2011 2011 April 2008July 20082008 2008 2008 2009 June August November 2009 2010 2010 2010 MayJune August November 2008 2009 2009 2009September 2009 2009 2010 June August November 2010 2011 2011 2011 2008 October JanuaryMarch May December 2009 October JanuaryMarch May December 2010 October 2010 2010 2011 June SeptemberDecember March May January 02 us regional laBor trends 03 most Heavily impacted sectors 04 reasons for announced us JoB openings (marcH 2008 to June 2011) JoB losses 05 us laBor market outlook 4,000,000 06 maJor announced us JoB layoffs 3,500,000 …a JoBless rate aBout tHis report approacHing 3,000,000 10 percent approacHing tHe 2,500,000 2012 presidential election campaign 2,000,000 would Be political 1,500,000 poison. 1,000,000 500,000 0 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 October 2008 November 2008 December 2008 January 2009 February 2009 March 2009 April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 Source: US Bureau of Labor Statistics
  7. Home7 | employment restructuring report | united states edition Q3 2011 contents summary 01 us laBor market trends 02 us regional laBor trends02 03 most Heavily ➔ All of the four major US has also seen the greatest Pennsylvania, New York and impacted sectors census regions experienced an improvement over the course Ohio. Eighty per cent of those 04 reasons for announced increase in layoffs during the of the past year. There has who were affected by layoffs JoB losses second quarter. As in earlier been an improvement in were in metropolitan areas. 05 us laBor market outlook periods, the West suffered layoffs in the Midwest, whileus regional the largest number of layoffs numbers have deteriorated in The worst affected area for 06 maJor announced us JoB layoffslaBor – 132,114, followed by South (131,322), Midwest (103,956), the Northeast and South. displaced workers was in the Los Angeles-Long Beach- aBout tHis reporttrends and Northeast (102,368). During the quarter, the state Santa Ana area of California. of California suffered While the West has the the greatest number of largest share of layoffs, it layoffs, followed by Illinois,
  8. 50000 Home8 | employment restructuring report | united states edition Q3 2011 contents summary 0 Northeast South Midwest West 01 us laBor market trends 02 us regional laBor trends 03 most Heavily impacted sectors 04 reasons for announced announced JoB layoffs By us region (Q1 2009 to Q2 2011) JoB losses 05 us laBor market outlook 300,000 06 maJor announced us JoB layoffs 250,000 aBout tHis report 200,000 150,000 100,000 50,000 0 Northeast South Midwest West Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Source: US Bureau of Labor Statistics tHere Has Been an improvement in layoffs in tHe midwest, wHile numBers Have deteriorated in tHe nortHeast and soutH.
  9. Home9 | employment restructuring report | united states edition Q3 2011 contents summary 01 us laBor market trends 02 us regional laBor trends03 03 most Heavily ➔ The largest number of During the second quarter, extensive separations across some type of recall of those impacted sectors layoffs in the second quarter 65 percent of employers the country. laid off – the highest since 04 reasons for announced of 2011 occurred in the anticipated recalling some of 2005. JoB losses these workers. Transport and warehousing 05 us laBor manufacturing sector with market outlook has seen layoffs gradually Meanwhile job openingsmost 95,289 positions disappearing, however the sector’s overall The administrative and waste increase over the past year, at the end of the second 06 maJor announced us JoB layoffsHeavily performance improved services sector had the second largest share of total reaching 49,421 in the latest period. quarter had improved in professional business aBout tHis report considerably. Layoffs inimpacted manufacturing were 20,000 layoffs in the period, behind One bright spot is that the services; trade, transportation manufacturing, with some & utilities; leisure &sectors less than in the previous month 56,000 workers displaced. situation for many displaced hospitality, and government. and almost 40,000 fewer than workers may not be as grim Openings deteriorated in in the final months of 2010. There was a significant rise as the bare figures suggest education & health services, in layoffs in the healthcare and construction, while – some 61 percent of private Within the manufacturing and social services sector, sector employers indicated manufacturing was stable. sector, the largest increase in with losses jumping by some layoffs occurred in the food 22,000 to 29,431 and transport equipment sub sectors. The government sector also fared badly in the wake of The construction sector also widespread budget tightening, saw a substantial decline in with three successive quarters layoffs – down approximately of declines being punctured 10,000 in the quarter to some by a 32,000 rise, taking total 29,000, and also well down public sector layoffs to 50,000 on the recent peak of 70,000 in the quarter. Teachers have in the final quarter of 2010. suffered especially badly, with
  10. Home10 | employment restructuring report | united states edition Q3 2011 contents 50000 summary 01 us laBor market trends 02 us regional 0 laBor trends Manufacturing and Transportation and warehousing services social assistance Administrative waste services Government Accommodation andRetail trade Healthcare and food Construction Professional and technical servicesrecreation Wholesale trade Information entertainment andand insurance services Arts, Finance Educational 03 most Heavily impacted sectors 04 reasons for announced announced us JoB layoffs By industry sector – non-farm (Q2 2010 to Q2 2011) JoB losses 05 us laBor market outlook 200,000 06 maJor tHe construction Q2 2010 announced sector also saw us JoB layoffs Q3 2010 aBout tHis a suBstantial report 150,000 Q4 2010 decline in Q1 2011 layoffs – down approximately Q2 2011 10,000 in tHe 100,000 Quarter to some 29,000, and also well down on tHe 50,000 recent peak of 70,000 in tHe final Quarter of 2010. 0 Manufacturing Administrative and waste services Government Transportation and warehousing Accommodation and food services Retail trade Healthcare and social assistance Construction Information Professional and technical services Arts, entertainment and recreation Finance and insurance Educational services Wholesale trade Source: US Bureau of Labor Statistics
  11. Professional Business Services Education and Health Services Trade, Transportation and Utilities Hospitality Government Leisure and Manufacturing Construction Home11 | employment restructuring report | united states edition Q3 2011 contents summary 01 us laBor market trends 02 us regional laBor trends 03 most Heavily impacted sectors 04 reasons for announced us JoB opening By industry sector (april 2011 to June 2011) JoB losses 05 us laBor market outlook 700,000 06 maJor announced us JoB layoffs 600,000 aBout tHis report 500,000 JoB openings at tHe end of tHe 400,000 second Quarter Had improved 300,000 in professional Business 200,000 services; trade, transportation & 100,000 utilities; leisure & 0 Hospitality, and Business Services Health Services and Utilities Hospitality Government Manufacturing Construction Professional Education and Trade, Transportation Leisure and government. April 2011 May 2011 June 2011 Source: US Bureau of Labor Statistics
  12. Home12 | employment restructuring report | united states edition Q1 2011 contents summary 01 us laBor market trends 02 us regional laBor trends04 03 most Heavily ➔ The US economy might One explanation may be that were unequivocal during the 13,000 layoffs in the latest impacted sectors be slowing somewhat but the some businesses have yet economic recession, and this quarter, while seasonal 04 reasons for announced cyclical decline is yet to show to interpret the economic factor has dropped steadily factors were responsible for JoB losses more than eight times that. 05 us laBor up in the reasons cited by slowdown as a cyclical over the past two years. market outlook employers for layoffs during phenomenon, preferring to Organizational changesreasons for the quarter. view it as a seasonal influence. Business demand was accounted for less than 6,000 06 maJor announced us JoB layoffsannounced Rather, the major reason It’s often not until the official responsible for approximately 67,000 separations in the displaced workers. aBout tHis report data confirms a slowdownJoB losses that businesses have given that enterprises are able to latest quarter, down from to explain the cutbacks is a peak of 450,000 two differentiate the reasons for a “seasonal impacts”. In fact years ago. change in the level of activity. “business demand” is at a series low, as is a related factor What is clear is that firms Financial issues were “financial issues”. blaming business demand responsible for approximately Business demand: Contract cancellation, contract completion, domestic completion, excess inventory/saturated market, import completion or insufficient demand organizational cHanges: Business restructure or change of ownership financial issues: Bankruptcy, falling profits or financial difficulty
  13. Q 50000 Home13 | employment restructuring report | united states edition Q3 2011 contents Q 0 summary Q Seasonal impacts Business demand Financial issues Organizational changes 01 us laBor market trends 02 us regional laBor trends 03 most Heavily Q impacted sectors 04 reasons for announced main reasons for JoB layoffs in tHe us (Q2 2009 to Q2 2011) JoB losses 05 us laBor market outlook 350,000 Q2 2009 06 maJor announced Q Q3 2009 us JoB layoffs 300,000 Q4 2009 aBout tHis report Q 250,000 Q1 2010 Q2 2010 Q 200,000 Q3 2010 Q 150,000 Q4 2010 Q1 2011 Q 100,000 Q2 2011 Q 50,000 Q 0 Seasonal impacts Business demand Financial issues Organizational changes Q Source: US Bureau of Labor Statistics Q Business demand was responsiBle for approximately 67,000 separations in tHe latest Quarter, down from a peak of 450,000 two years ago.

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