Layoff numbers dwindle but state ranks near top

EMPLOYMENT: Illinois had 61 mass layoffs, third highest in the nation

BY MICHAEL JOE
Medill News Service

This story ran on nwitimes.com on Saturday, November 18, 2006 12:47 AM CST

Illinois ranks third in the nation for company layoffs, even though the state's third-quarter figures fell, compared with its second quarter.

Nationally, mass layoffs, or layoffs involving 50 or more people at a company in business for more than a month, numbered 836 during the period that ended September 30, a drop of 38 percent from the previous quarter.

Third-quarter claims for unemployment insurance totaled 104,548, a decrease of more than 50 percent in claims filed during the second quarter, according to a report from the U.S. Department of Labor's Bureau of Labor Statistics this week.

"The economy is better, unemployment is down to 4.7 percent now and it doesn't seem like the economy is slowing at this point," said John A. Challenger, employment and outsourcing consultant at Challenger, Gray and Christmas Inc.

Illinois had 61 mass layoffs in the third quarter, leading to 8,046 claims for unemployment insurance, compared to 91 mass layoffs and 21,050 claims in the second quarter.

California had the highest number of people who lost jobs in mass layoffs during the third quarter, with 29,693. Florida followed with 21,002; Illinois was third with 10,052; and New York ranked fourth with 8,311. Together, the four states accounted for 53 percent of all laid-off U.S. workers.

By sector, the manufacturing industry was hit hardest by mass layoffs, accounting for 32 percent of the total.

Challenger said that while the economy may be showing signs of a downturn, many employers are hanging on to their employees.

"When the economy slows, often employers don't recognize it right away. They are optimistic in good times," Challenger said. "In the same way, businesses are reluctant to hire more people when the economy improves."