In 2008, there were 106 mass layoff actions* taken by Rhode Island employers as measured by new filings for Unemployment Insurance (UI) benefits. The events involved a total of 11,816 people who filed initial claims for UI benefits accounting for 13 percent of all initial claims (93,761) during 2008. Thirty-three of the 106 layoff actions that occurred during the year were classified as long-term layoffs (expected to last for more than 30 days). In comparison, in 2007, there were 91 significant layoff actions. A total of 10,941 workers were involved in the 2007 events accounting for 13.4 percent of the 81,928 initial claims filed.

Thirty-five mass layoff events occurred in the Manufacturing sector. These 35 events were linked to 26 Rhode Island establishments. The majority of these layoffs (24) were classified as temporary meaning the layoff lasted less than 30 days. Seven events were classified as long-term layoffs and affected nearly 850 workers. Three events were classified as permanent closures with no recall expected for more than 300 employees.

 
The Transportation & Warehousing sector recorded the second largest number of mass layoff events. These 20 events, occurring in 2008, resulted in the filing of 3,108 initial claims. While the sector experienced one additional event, from the 19 events occurring in 2007, the number of initial claims decreased 325 from the 2007 (3,433) figure.

There were 13 mass layoff events associated with employers classified in the Accommodation & Food Services sector involving 3,127 Rhode Island workers. The majority of these layoffs were short-term with nearly 12 of the 13 employers expecting to recall all workers in less than a month.

The Administrative & Waste Services sector had eight mass layoff events resulting in the filing of 587 initial claims. Five events were classified as temporary (lasting less than 30 days) and three events were reported as long-term layoffs with an uncertainty of reemployment for approximately 225 employees related to these events.

The Construction sector accounted for six events resulting in 414 initial claims. All layoffs in this sector were reported as lasting between three and six months. In addition, the Management of Companies & Enterprises sector had four events involving 348 workers and the Arts, Entertainment, & Recreation sector had three events involving 243 workers.
 

Rhode Island Department of Labor and Training
Labor Market Information
1511 Pontiac Avenue
Cranston, RI 02920-4407

Phone: (401) 462-8740
Fax: (401) 462-8766
TDD: (401) 462-8006
E-mail LMI