BOSTON - The last calendar quarter (October, November, and December) remains a perilous time for layoffs even with an improved economy and despite many employees' upcoming holiday plans, according to ClearRock, an executive coaching and outplacement firm headquartered in Boston. For 7 of the past 9 years, since 1996, there have been more layoff announcements by U.S. companies during the fourth quarter than any other three-month period, according to the U.S. Bureau of Labor Statistics. (see table)
While the fourth quarter comprises 25% of the year, companies have issued an average of 30% of their layoff notices - and laid off an average of 31% of released employees - during the 4th quarter, with the majority of these notices coming during the last two months around the holidays.
"Years ago, employees who were worried that their jobs might be in jeopardy used to breathe a sigh of relief before the end of the year, because employers normally didn't lay off people around the holidays," said Annie Stevens, managing partner for ClearRock. "That has changed since it's no longer a stigma for employees to be laid off, or for companies to make cutbacks. For those organizations that need to, trimming their payrolls before the beginning of a new year to enable them to get a fresh start has become more commonplace."
So, what should employees who may be concerned about their job security - especially before the holidays - do? ClearRock advises concerned employees to look both internally and externally to see how vulnerable they may be to a holiday layoff, and then how to cope with one if it occurs:
- Take a close look at your employer's organization. "How well is your employer doing today, and what are its prospects for tomorrow? How is your own part of the company faring? If business has been soft, or your own department hasn't been performing well, there may be some cutbacks before the end of the year," said Greg Gostanian, managing partner for ClearRock.
- Closely examine your own performance. "Have you failed to achieve the tasks you were hired or promoted to do? Have you received any negative performance evaluations? Have you failed to keep up with new technology or changes in your profession? If so, you may be vulnerable to cutbacks," said Stevens.
- Look for potentially telling "subtle signals." "Do people in other departments know more about what's going on in your own area than you do? Have you stopped being invited to important meetings, or being consulted about future plans? Have you been discouraged from traveling or joining trade associations?" asked Gostanian.
- Don't ignore the warning signs. If these factors cause you a great deal of alarm - rather than just a little uneasiness - you may have to brace yourself. "You might need to prepare your family and significant others for potentially upsetting news, and get your holiday spending plans in line with a possible loss of your job. Don't go splurging if you feel you may be starting the new year having to find new employment," said Stevens.
- Be prepared to ask for - and receive - all you're entitled to. "Familiarize yourself with your company's severance policies, especially if you qualify for any enhanced severance formulas that use a combination of your age and seniority. Take advantage of career counseling if it's offered, and ask for it if it isn't," said Gostanian.
- Don't rush into a search for a new job if you're laid off. "Consider not only what you can do for a living, but what you want to do as well. If performance-related reasons for your being released were a factor, you may need to update your skills, change your attitude, or try to transfer your experience to a new career."
U.S. DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS
MASS LAYOFF EVENTS & SEPARATIONS
2004-1996
The Mass Layoff Statistics (MLS) program collects reports on mass layoff actions that result in workers being separated from their jobs. Mass layoff numbers are from establishments which have at least 50 initial claims for unemployment insurance filed against them during a 5-week period.
| 2004 |  | Events | | Separations | | 1Q | | 1,339 | | 276,503 | | 2Q | | 1,358 | | 278,568 | | 3Q | | 886 | | 164,477 | | 4Q | | 1,427 | | 273,964 | | Total | | 5,010 | | 993,511 | | AVERAGE 4Q | | 28% | | 28% |
| 2003 | | Events | | Separations | | 1Q | | 1,502 | | 286,947 | | 2Q | | 1,799 | | 368,273 | | 3Q | | 1,190 | | 236,333 | | 4Q | | 1,690 | | 325,333 | | Total | | 6,181 | | 1,216,886 | | AVERAGE 4Q | | 27% | | 27% |
| 2002 | | Events | | Separations | | 1Q | | 1,611 | | 299,266 | | 2Q | | 1,624 | | 344,606 | | 3Q | | 1,186 | | 255,152 | | 4Q | | 1,916 | | 373,307 | | Total | | 6,337 | | 1,272,331 | | AVERAGE 4Q | | 29% | | 30% |
| 2001 | | Events | | Separations | | 1Q | | 1,546 | | 304,171 | | 2Q | | 1,828 | | 430,499 | | 3Q | | 1,629 | | 330,391 | | 4Q | | 2,371 | | 459,771 | | Total | | 7,375 | | 1,524,832 | | AVERAGE 4Q | | 30% | | 31% |
| 2000 | | Events | | Separations | | 1Q | | 1,081 | | 202,500 | | 2Q | | 1,055 | | 205,861 | | 3Q | | 817 | | 174,628 | | 4Q | | 1,638 | | 332,973 | | Total | | 4,591 | | 915,962 | | AVERAGE 4Q | | 36% | | 36% |
| 1999 | | Events | | Separations | | 1Q | | 1,262 | | 230,711 | | 2Q | | 1,194 | | 246,151 | | 3Q | | 898 | | 184,429 | | 4Q | | 1,202 | | 240,060 | | Total | | 4,556 | | 901,451 | | AVERAGE 4Q | | 27% | | 26% |
| 1998 | | Events | | Separations | | 1Q | | 1,114 | | 178,251 | | 2Q | | 1,133 | | 336,536 | | 3Q | | 1,028 | | 201,186 | | 4Q | | 1,383 | | 275,272 | | Total | | 4,859 | | 991,245 | | AVERAGE 4Q | | 28% | | 28% |
| 1997 | | Events | | Separations | | 1Q | | 1,141 | | 226,735 | | 2Q | | 1,303 | | 280,255 | | 3Q | | 851 | | 172,392 | | 4Q | | 1,376 | | 268,461 | | Total | | 4,671 | | 947,843 | | AVERAGE 4Q | | 28% | | 30% |
| 1996 | | Events | | Separations | | 1Q | | 1,263 | | 246,820 | | 2Q | | 1,130 | | 209,688 | | 3Q | | 847 | | 181,569 | | 4Q | | 1,520 | | 310,045 | | Total | | 4,760 | | 948,122 | | AVERAGE 4Q | | 33% | | 32% |
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