Friday, July 24, 2009

Mass layoffs remain a problem

Employers took 2,763 mass layoff actions in June that resulted in the separation of 279,231 workers, as measured by new filings for unemployment insurance benefits during the month, the Bureau of Labor Statistics reported yesterday.

An event is considered a mass layoff when at least 50 people are let go by a company.

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The number of mass layoffs was down by 170 from May and has likely peaked, but job losses remain high. 

The jobless rate is a lagging indicator in an economic recovery, i.e., it is one of the last statistics to improve after the economy begins to recover.

Though the Federal Reserve believes the economy will start its long-awaited rebound this year, the unemployment rate is not expected to peak until the end of the year, according to the Fed’s best estimate.

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