Internet address: http://stats.bls.gov:80/newsrels.htm Technical information: (202) 606-6396 USDL 97-59 Media contact: 606-5902 For release: 10:00 A.M. EST Wednesday, February 26, 1997 MASS LAYOFFS FOR NOVEMBER 1996 In November 1996, there were 1,355 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month, according to the U.S. Department of Labor’s Bureau of Labor Statistics. Each action involved at least 50 persons from a single establishment, and the number of workers involved totaled 122,341 persons. Although the number of layoff events were higher than in November 1995, the number of workers involved decreased slightly over the year. (See table 1.) The monthly series in this release covers mass layoffs of 50 or more workers beginning in a given month, regardless of duration. Information on the length of the layoff is obtained later for a quarterly release, which includes only mass layoffs lasting more than 30 days (referred to as "extended mass layoffs") and more information on the establishment classification and location and on the demographics of the laid-off workers. See the Technical Note for more detailed definitions. Because of the inclusion in the monthly figures of short-term layoffs of 30 days or less, the sum of the figures for the three months in a quarter will be significantly higher than the quarterly figure for mass layoffs of more than 30 days. For example, the sum of all mass layoffs in July, August, and September of 1996 was 2,878 layoff events involving 307,204 initial claimants for unemployment insurance. The third-quarter 1996 figures for mass layoffs lasting more than 30 days, however, were 947 events and 125,828 claimants. A little more than one-third (35 percent) of all mass layoffs in the July-September period lasted for more than a month. In all quarters for which data are available, this ratio of "extended" mass layoffs to all mass layoffs varied from about 30 to 45 percent. State Distribution In the month of November, the states with the largest numbers of initial claims filed in mass layoff events were: California 32,462 Wisconsin 12,489 Pennsylvania 9,090 Texas 7,556 Illinois 6,394 These five states accounted for 59 percent of the total number of layoff events and 56 percent of the initial claims reported. (See table 2.) Layoffs in these states were concentrated in agricultural services (primarily farm labor contractors), heavy construction (largely in highway and street construction), crop production, and food processing. From November 1995 to November 1996, 28 states and the District of Columbia reported fewer people who filed initial claims stemming from mass layoff events. Virginia reported the sharpest decline in initial claims, largely due to fewer layoffs in textile mills. California reported the largest over-the-year rise, primarily in motion pictures, crop production, and agricultural services. States with the largest over-the-year changes in initial claims were: Increases Decreases California 14,659 Virginia -5,431 Texas 4,500 Maryland -5,298 Wisconsin 2,416 Illinois -5,284 New Jersey 2,205 Pennsylvania -3,975 Indiana 1,783 Ohio -3,421 Industry Distribution Manufacturing industries accounted for 48 percent of all initial claims filed and 39 percent of all mass layoff events. (See table 3.) Within manufacturing, more initial claims were filed in durable goods industries than in nondurable goods industries; the number of events was the same in both. Manufacturing industries which had the largest numbers of initial claimants were: Food and kindred products 9,971 Transportation equipment 6,438 Industrial machinery and equipment 5,719 Electronic and other electrical equipment 5,014 Apparel and other textile product 4,328 Fabricated metal products 4,234 Within nonmanufacturing industries (including agriculture), construction accounted for about 30 percent of the layoff events and initial claims, primarily due to layoffs in heavy construction, except buildings (such as highways, streets, bridges, tunnels, etc.). Agriculture (mostly in agricultural services and in crop production) and services (largely in business services) each contributed about 25 percent of the events and initial claimants. Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were: Heavy construction, except buildings 11,043 Agricultural services 7,380 Agricultural crop production 6,466 Business services 5,448 Compared with November 1995, the largest changes in initial claims occurred in the following industries: Increases Heavy construction, excluding building 3,400 Agricultural crop production 2,529 Agricultural services 2,393 Business services 2,301 Food and kindred products 2,259 Motion pictures 2,232 Decreases Textile mill products -4,018 Electronic and other electrical equipment -2,055 Transportation equipment -1,572 Apparel and other textile products -1,117 Technical Note The Mass Layoff Statistics (MLS) program is a federal-state program which uses a standardized, automated approach to identifying, describing, and tracking the effects of major job cutbacks, using data from each state’s unemployment insurance database. Each month, states report on establishments which have at least 50 initial claims filed against them during a consecutive 5-week period. These establishments then are contacted by the state agency to determine whether these separations lasted 31 days or longer, and, if so, other information concerning the layoff is collected. States report on layoffs lasting more than one month on a quarterly basis. Monthly reports from the MLS program began with data for September 1996. The program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Previously, however, monthly layoff statistics were not published. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. Definitions Initial claimant. A person who files any notice of unemployment to initiate a request either for a determination of entitlement to and eligibility for compensation, or for a subsequent period of unemployment within a benefit year or period of eligibility. Mass layoff event. Fifty or more initial claims for unemployment insurance benefits filed against an establishment during a 5-week period, regardless of duration. Table 1. Mass layoff events and initial claimants for unemployment insurance, July 1995 to November 1996 Total mass layoffs Extended mass layoffs lasting more than 30 days Event Date realization rate(1) Events Initial Events Initial claimants claimants 1995 July.......................... 1,452 162,229 August........................ 656 55,196 September..................... 684 73,088 Third quarter................. 2,792 290,513 902 146,159 32.3 October....................... 1,050 110,134 November...................... 1,248 130,092 December...................... 2,010 209,060 Fourth quarter................ 4,308 449,286 1,716 295,515 39.8 1996 January....................... 1,666 167,834 February...................... 918 74,984 March......................... 975 121,046 First quarter................. 3,559 363,864 1,354 215,718 38.0 April......................... 1,010 110,873 May........................... 913 78,045 June.......................... 893 77,287 Second quarter................ 2,816 266,205 1,306 188,498 46.4 July.......................... 1,503 189,096 August........................ 869 76,462 September..................... 506 41,646 Third quarter(2).............. 2,878 307,204 p947 p125,828 35.2 October(3).................... 1,262 127,829 November(4)................... 1,355 122,341 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. 2 Data for layoffs lasting more than 30 days were reported by the District of Columbia and all states, except Michigan. 3 Data for total mass layoffs were reported by the District of Columbia and all states, except Michigan. 4 Data for total mass layoffs were reported by the District of Columbia and all states, except Colorado and Michigan. p = preliminary. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, November 1995 and November 1996 Mass layoff events Initial claimants for unemployment insurance State November November November November 1995 1996 1995 1996 Total(1)............... 1,248 1,355 130,092 122,341 Alabama.................. 9 5 1,451 352 Alaska................... 3 7 197 516 Arizona.................. 8 9 638 730 Arkansas................. 23 20 4,010 3,250 California............... 306 457 17,803 32,462 Colorado................. (2) (1) (2) (1) Connecticut.............. 3 3 333 252 Delaware................. (2) (2) (2) (2) District of Columbia..... (2) - (2) - Florida.................. 24 38 2,021 2,294 Georgia.................. 7 7 597 631 Hawaii................... 3 7 210 584 Idaho.................... 23 11 2,442 1,507 Illinois................. 70 65 11,678 6,394 Indiana.................. 25 43 2,576 4,359 Iowa..................... 19 13 2,239 1,069 Kansas................... 5 4 622 362 Kentucky................. 3 4 327 947 Louisiana................ 10 11 704 776 Maine.................... 8 5 817 406 Maryland................. 26 10 7,168 1,870 Massachusetts............ 18 12 1,662 1,226 Michigan................. 32 (1) 3,503 (1) Minnesota................ 36 46 3,342 4,024 Mississippi.............. 12 5 1,299 354 Missouri................. 17 21 2,841 2,270 Montana.................. 4 7 293 622 Nebraska................. (2) (2) (2) (2) Nevada................... 7 11 581 1,012 New Hampshire............ 4 (2) 291 (2) New Jersey............... 32 38 2,687 4,892 New Mexico............... (2) (2) (2) (2) New York................. 3 14 260 1,083 North Carolina........... 16 12 1,362 1,076 North Dakota............. 8 (2) 947 (2) Ohio..................... 65 68 8,834 5,413 Oklahoma................. 3 7 592 505 Oregon................... 19 8 1,742 708 Pennsylvania............. 167 106 13,065 9,090 Rhode Island............. (2) 5 (2) 419 South Carolina........... 27 37 3,345 3,732 South Dakota............. (2) - (2) - Tennessee................ 10 12 873 1,116 Texas.................... 27 78 3,056 7,556 Utah..................... 4 (2) 541 (2) Vermont.................. 3 - 166 - Virginia................. 35 28 9,241 3,810 Washington............... 23 12 2,045 1,008 West Virginia............ 5 5 491 423 Wisconsin................ 84 95 10,073 12,489 Wyoming.................. (2) - (2) - Puerto Rico.............. 4 (3) 258 (3) 1 For November 1996, data were reported by the District of Columbia and all states, except Colorado and Michigan. 2 Data do not meet BLS or state agency disclosure standards. 3 Data are not available. NOTE: Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, November 1995 and November 1996 Mass layoff events Initial claimants for unemployment insurance Industry November November November November 1995 1996 1995 1996 Total, all industries(1)....................... 1,248 1,355 130,092 122,341 Total, private.................................. 1,223 1,308 127,508 118,603 Agriculture....................................... 151 183 9,340 13,938 Nonagriculture.................................... 964 1,064 94,898 100,072 Manufacutring.................................... 506 522 60,733 58,134 Durable goods................................... 246 261 32,405 33,276 Lumber and wood products....................... 43 33 4,383 3,625 Furniture and fixtures......................... 9 16 1,229 2,798 Stone, clay, and glass products................ 17 17 1,266 1,224 Primary metal industries....................... 18 21 1,928 2,113 Fabricated metal products...................... 19 28 2,357 4,234 Industrial machinery and equipment............. 33 33 4,181 5,719 Electronic and other electrical equipment...... 35 43 7,444 5,014 Transportation equipment....................... 56 45 8,277 6,438 Instruments and related products............... 7 8 522 706 Miscellaneous manufacturing industries......... 9 17 818 1,405 Nondurable goods................................ 260 261 28,328 24,858 Food and kindred products...................... 81 101 8,126 9,971 Tobacco products............................... (2) 3 (2) 315 Textile mill products.......................... 33 36 7,594 3,576 Apparel and other textile products............. 59 56 5,445 4,328 Paper and allied products...................... 18 11 1,593 1,393 Printing and publishing........................ 10 8 912 588 Chemicals and allied products.................. 6 5 395 577 Petroleum and coal products.................... (2) 11 (2) 936 Rubber and miscellaneous plastics products..... 28 24 2,188 2,426 Leather and leather products................... 18 6 1,516 748 Nonmanufacturing................................. 458 542 34,165 41,938 Mining.......................................... 8 8 550 579 Construction.................................... 153 218 11,946 16,459 Transportation and public utilities............. 36 32 3,258 2,316 Wholesale and retail trade...................... 101 100 7,245 7,449 Wholesale trade................................ 27 24 2,071 1,545 Retail trade................................... 74 76 5,174 5,904 Finance, insurance, and real estate............ 9 11 480 737 Services....................................... 151 173 10,686 14,398 Not identified.................................... 108 61 23,270 4,593 Government....................................... 25 47 2,584 3,738 Federal......................................... 10 14 1,512 1,574 State........................................... 6 17 525 1,191 Local........................................... 9 16 547 973 1 For November 1996, data were reported by the District of Columbia and all states, except Colorado and Michigan. 2 Data do not meet BLS or state agency disclosure standards.