Employers took 1,761 mass layoff actions in January that resulted in the separation of 182,261 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Bureau of Labor Statistics reported today. Each action involved at least 50 persons from a single employer. Both mass layoff events and initial claims increased from the prior month after four consecutive over-the-month decreases. In January, 486 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 62,556 initial claims. Both figures increased over the month--the first increases since August 2009 for events and since September 2009 for initial claims.
This is the largest monthly increase since July 2009. This report does not bode well for any enhancement to the overall employment picture. Grandpa is quite sure the equity market will simply ignore the data as the market believes the "jobless recovery" fairytale.