Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 691-6392 USDL 01-04 For release: 10:00 A.M. EST Media contact: 691-5902 Tuesday, January 9, 2001 MASS LAYOFFS IN NOVEMBER 2000 In November 2000, there were 1,697 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month, according to data from the U.S. Department of Labor's Bureau of Labor Statistics. Each action involved at least 50 persons from a single establishment; the number of workers involved totaled 216,514. (See table 1.) The number of layoff events and initial claims for unemployment insurance were the highest for the month of November since the series began in 1995. From January through November 2000, the total number of layoff events (13,061) was slightly lower than in January-November 1999, while the total number of initial claims (1,508,849) was higher. The monthly data series in this release cover mass layoffs of 50 or more workers beginning in a given month, regardless of the duration of the layoffs. Information on the length of the layoff is obtained later and issued in a quarterly release that reports on mass layoffs lasting more than 30 days (referred to as "extended mass layoffs") and provides more information on the industry classification and location of the establishment and on the demographics of the laid-off workers. Because monthly figures include short-term layoffs of 30 days or less, the sum of the figures for the 3 months in a quarter will be higher than the quarterly figure for mass layoffs of more than 30 days. (See table 1.) See the Technical Note for more detailed definitions. Industry Distribution In November 2000, manufacturing industries accounted for 36 percent of all mass layoff events and 43 percent of all initial claims filed. The highest number of initial claimants was in transportation equipment (18,322), primarily in motor vehicles and car bodies. Other manufacturing industries with high numbers of initial claimants were food and kindred products (9,927), industrial machinery and equipment (9,899), and textile mill products (9,379). (See table 2.) Nineteen percent of all layoffs and 22 percent of initial claimants during the month were in services, mainly in business services (particularly help supply services) and motion pictures. Layoffs in these industries, how- ever, are more likely than those in most other industries to last less than 30 days. Agriculture accounted for 15 percent of all layoff events and 10 percent of initial claimants during the month, mostly in agricultural services (farm labor contractors). Construction, particularly in heavy construction and in special trade contractors, accounted for 14 percent of all events and 11 percent of all initial claimants. Retail trade accounted for an additional 6 percent of all mass layoff events and initial claimants during the month, largely in eating and drinking places and in general merchandise stores (department stores). - 2 - Compared with November 1999, the largest over-the-year increases in initial claims occurred in transportation equipment (+15,167) and business services (+11,278). The largest decreases in initial claims occurred in agricultural services (-2,332) and agricultural production crops (-1,242). Geographic Distribution In November, the number of initial claims due to mass layoffs was higher in the West (85,713) than in any other region. (See table 3.) Layoffs in business services, agricultural services, agricultural production crops, motion pictures, and food and kindred products accounted for 62 percent of the claims in the West. The fewest number of mass-layoff initial claims was reported in the Northeast region (21,489). Over-the-year increases in mass layoff-related initial claims were reported in all four regions: Midwest (+31,090), South (+22,081), West (+15,260), and Northeast (+8,575). Each of the nine geographic divisions reported over-the-year increases in initial claims associated with mass layoff events, with the largest increase reported in the Pacific division. Among the 50 states and the District of Columbia, California accounted for the largest number of initial claims filed in mass layoff events (71,002), primarily in business services and agricultural services. Other states with significant numbers of mass-layoff initial claims were Illinois (16,382), Wisconsin (13,593), and Pennsylvania (11,364). These four states accounted for 50 percent of all layoff events and 52 percent of all initial claims for unemployment insurance. (See table 4.) From November 1999 to November 2000, 41 states reported over-the-year increases in initial claims, led by California (+11,577). Eight states reported over-the-year decreases in initial claims, with Arkansas reporting the largest decrease (-2,108). Technical Note The Mass Layoff Statistics (MLS) program is a federal-state program that 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 1 month on a quarterly basis. A given month contains an aggregation of the weekly unemployment insurance claims filings for the Sunday through Saturday weeks in that month. All weeks are included for the particular month, except if the first day of the month falls on Saturday. In this case, the week is included in the prior month's tabulations. This means that some months will contain 4 weeks and others 5 weeks, and the number of weeks in a given month may be different from year to year. Therefore, analysis of over-the- month and over-the-year change should take this calendar effect into consideration. The MLS program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Prior to April 1995, monthly layoff statistics were not available. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone number: 1-800-877-8339. 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, October 1998 to November 2000 Extended mass layoffs lasting more than 30 days Date Total mass layoffs Event realization rate(1) Initial Initial Events claimants Events claimants 1998 October ...................... 1,553 160,830 November ..................... 1,368 144,343 December ..................... 1,776 207,661 Fourth Quarter ............... 4,697 512,834 1,734 325,990 36.9 1999 January ...................... 2,421 226,995 February ..................... 1,067 89,800 March ........................ 880 91,890 First Quarter ................ 4,368 408,685 1,509 252,122 34.5 April ........................ 1,270 136,885 May .......................... 1,032 102,738 June ......................... 1,140 130,951 Second Quarter ............... 3,442 370,574 1,444 242,464 42.0 July ......................... 1,741 221,334 August ....................... 698 75,691 September .................... 717 75,288 Third Quarter ................ 3,156 372,313 1,097 189,973 34.8 October ...................... 1,098 118,938 November ..................... 1,336 139,508 December ..................... 1,509 162,381 Fourth Quarter ............... 3,943 420,827 1,625 287,421 41.2 2000 January ...................... 1,934 223,322 February ..................... 1,045 103,898 March ........................ 986 106,748 First Quarter ................ 3,965 433,968 1,331 220,019 33.6 April ........................ 924 101,359 May .......................... 984 92,193 June ......................... 1,597 192,025 Second Quarter ............... 3,505 385,577 1,272 228,867 36.3 July ......................... 1,333 164,978 August ....................... 751 97,215 September .................... 936 106,842 Third Quarter ................ 3,020 369,035 (p)975 (p)142,269 (p)32.3 October(p) ................... 874 103,755 November(p) .................. 1,697 216,514 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. p = preliminary. Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance Initial claimants for Mass layoff events unemployment insurance Industry November September October November November September October November 1999 2000 2000(p) 2000(p) 1999 2000 2000(p) 2000(p) Total(1) ....................................... 1,336 936 874 1,697 139,508 106,842 103,755 216,514 Total, private ...................................... 1,299 885 826 1,651 135,031 101,134 98,349 212,318 Agriculture ....................................... 328 119 145 254 25,546 7,747 13,631 21,916 Nonagriculture .................................... 958 754 670 1,374 107,599 92,220 82,285 186,788 Manufacturing ................................... 348 313 321 607 45,029 46,605 48,588 92,805 Durable goods ................................. 183 178 175 363 26,418 33,403 34,544 59,217 Lumber and wood products .................... 43 18 19 61 4,429 1,354 1,819 7,725 Furniture and fixtures ...................... 4 10 10 20 306 1,439 944 2,576 Stone, clay, and glass products ............. 13 11 ( 2 ) 26 1,220 794 ( 2 ) 2,559 Primary metal industries .................... 12 20 20 35 1,039 2,082 2,857 4,643 Fabricated metal products ................... 20 12 20 44 1,965 844 1,737 4,332 Industrial machinery and equipment .......... 35 24 22 48 6,419 5,816 6,567 9,899 Electronic and other electrical equipment ... 20 17 14 32 6,766 1,470 1,865 7,218 Transportation equipment .................... 24 51 57 77 3,155 18,124 17,704 18,322 Instruments and related products ............ 6 8 6 8 607 836 480 769 Miscellaneous manufacturing industries ...... 6 7 ( 2 ) 12 512 644 ( 2 ) 1,174 Nondurable goods .............................. 165 135 146 244 18,611 13,202 14,044 33,588 Food and kindred products ................... 65 40 64 84 7,384 4,235 6,729 9,927 Tobacco products ............................ - - - - - - - - Textile mill products ....................... 27 18 14 48 4,216 2,294 1,696 9,379 Apparel and other textile products .......... 35 33 30 37 3,583 2,762 2,281 4,147 Paper and allied products ................... ( 2 ) 19 8 16 ( 2 ) 1,899 695 2,243 Printing and publishing ..................... ( 2 ) 6 ( 2 ) 7 ( 2 ) 480 ( 2 ) 585 Chemicals and allied products ............... 9 4 6 6 691 265 438 420 Petroleum and coal products ................. 6 - ( 2 ) 6 571 - ( 2 ) 548 Rubber and miscellaneous plastics products .. 11 12 14 31 943 976 1,185 5,182 Leather and leather products ................ ( 2 ) 3 ( 2 ) 9 ( 2 ) 291 ( 2 ) 1,157 Nonmanufacturing ................................ 610 441 349 767 62,570 45,615 33,697 93,983 Mining ........................................ 6 - ( 2 ) 9 476 - ( 2 ) 984 Construction .................................. 171 54 58 241 15,498 3,584 4,929 22,983 Transportation and public utilities ........... 37 35 29 45 3,405 3,046 3,116 4,811 Wholesale and retail trade .................... 107 98 87 139 10,305 9,159 7,815 15,743 Wholesale trade ............................ 22 16 17 32 2,013 1,773 1,191 2,649 Retail trade ............................... 85 82 70 107 8,292 7,386 6,624 13,094 Finance, insurance, and real estate ........... 24 27 ( 2 ) 18 1,798 1,801 ( 2 ) 1,562 Services ...................................... 265 227 155 315 31,088 28,025 15,842 47,900 Not identified .................................... 13 12 11 23 1,886 1,167 2,433 3,614 Government .......................................... 37 51 48 46 4,477 5,708 5,406 4,196 Federal ........................................... 5 22 18 15 496 2,983 2,397 1,275 State ............................................. 16 11 12 20 1,910 951 1,355 2,002 Local ............................................. 16 18 18 11 2,071 1,774 1,654 919 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. p = preliminary. NOTE: Dash represents zero. Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division Mass layoff events Initial claimants for unemployment insurance Census region and division November September October November November September October November 1999 2000 2000(p) 2000(p) 1999 2000 2000(p) 2000(p) United States(1) ...... 1,336 936 874 1,697 139,508 106,842 103,755 216,514 Northeast ..................... 128 106 110 187 12,914 13,642 9,040 21,489 New England ............... 25 17 16 30 2,122 5,979 1,293 2,926 Middle Atlantic ........... 103 89 94 157 10,792 7,663 7,747 18,563 South ......................... 178 158 217 329 21,945 17,457 26,981 44,026 South Atlantic ............ 82 67 91 154 10,017 6,375 12,727 24,888 East South Central ........ 25 39 42 68 2,075 4,655 3,868 7,936 West South Central ........ 71 52 84 107 9,853 6,427 10,386 11,202 Midwest ....................... 282 179 180 464 34,196 25,529 30,047 65,286 East North Central ........ 210 140 144 361 25,302 18,454 24,434 52,987 West North Central ........ 72 39 36 103 8,894 7,075 5,613 12,299 West .......................... 748 493 367 717 70,453 50,214 37,687 85,713 Mountain .................. 57 31 35 66 6,279 2,727 4,185 7,552 Pacific ................... 691 462 332 651 64,174 47,487 33,502 78,161 1 See footnote 1, table 2. p = preliminary. NOTE: The States (including the District of Columbia) that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee; West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington. Table 4. State distribution: Mass layoff events and initial claimants for unemployment insurance Initial claimants for Mass layoff events unemployment insurance State November September October November November September October November 1999 2000 2000(p) 2000(p) 1999 2000 2000(p) 2000(p) Total(1) ............ 1,336 936 874 1,697 139,508 106,842 103,755 216,514 Alabama ................ 5 8 7 13 400 596 450 2,039 Alaska ................. 5 3 ( 2 ) 6 392 282 ( 2 ) 399 Arizona ................ 6 3 9 3 510 240 959 274 Arkansas ............... 12 5 5 13 3,362 548 558 1,254 California ............. 638 430 302 581 59,425 43,042 30,578 71,002 Colorado ............... 13 ( 2 ) 4 8 1,175 ( 2 ) 380 850 Connecticut ............ ( 2 ) - 3 3 ( 2 ) - 247 233 Delaware ............... ( 2 ) - - 3 ( 2 ) - - 2,368 District of Columbia ... - ( 2 ) ( 2 ) - - ( 2 ) ( 2 ) - Florida ................ 15 20 32 34 991 1,662 2,880 2,240 Georgia ................ 15 7 14 19 1,728 550 1,233 2,187 Hawaii ................. ( 2 ) ( 2 ) 3 3 ( 2 ) ( 2 ) 174 285 Idaho .................. 12 ( 2 ) 6 14 1,475 ( 2 ) 801 1,795 Illinois ............... 47 39 39 70 5,407 5,592 5,692 16,382 Indiana ................ 22 10 11 48 5,120 1,411 1,216 6,698 Iowa ................... 15 8 9 25 1,911 1,254 736 4,355 Kansas ................. 6 3 3 13 658 197 2,488 1,212 Kentucky ............... 5 17 15 24 503 2,988 1,565 3,711 Louisiana .............. 5 ( 2 ) 13 24 363 ( 2 ) 1,299 2,214 Maine .................. ( 2 ) 4 3 ( 2 ) ( 2 ) 2,119 171 ( 2 ) Maryland ............... 3 3 4 6 247 263 354 724 Massachusetts .......... 16 9 5 16 1,400 3,229 507 1,284 Michigan ............... 40 28 23 90 3,660 3,804 3,537 9,558 Minnesota .............. 31 7 10 45 3,367 1,909 1,104 4,711 Mississippi ............ 7 8 12 16 452 643 950 1,041 Missouri ............... 19 20 13 17 2,610 3,659 1,122 1,730 Montana ................ 4 - - 4 594 - - 455 Nebraska ............... ( 2 ) - ( 2 ) ( 2 ) ( 2 ) - ( 2 ) ( 2 ) Nevada ................. 15 20 13 23 2,062 1,837 1,578 2,847 New Hampshire .......... ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) New Jersey ............. 19 10 14 31 2,181 931 1,229 4,912 New Mexico ............. ( 2 ) ( 2 ) 3 - ( 2 ) ( 2 ) 467 - New York ............... 12 12 12 22 971 918 1,020 2,287 North Carolina ......... 8 8 15 15 1,839 833 3,717 1,987 North Dakota ........... - - - ( 2 ) - - - ( 2 ) Ohio ................... 34 33 34 53 3,023 4,669 9,611 6,756 Oklahoma ............... 7 ( 2 ) ( 2 ) 9 603 ( 2 ) ( 2 ) 2,155 Oregon ................. 28 19 7 30 2,425 3,209 638 3,293 Pennsylvania ........... 72 67 68 104 7,640 5,814 5,498 11,364 Rhode Island ........... ( 2 ) ( 2 ) ( 2 ) 5 ( 2 ) ( 2 ) ( 2 ) 518 South Carolina ......... 32 16 11 46 4,234 1,712 2,812 9,339 South Dakota ........... - ( 2 ) - - - ( 2 ) - - Tennessee .............. 8 6 8 15 720 428 903 1,145 Texas .................. 47 44 65 61 5,525 5,529 8,477 5,579 Utah ................... 5 ( 2 ) - 13 342 ( 2 ) - 1,276 Vermont ................ 3 ( 2 ) 3 3 260 ( 2 ) 236 281 Virginia ............... 6 12 12 29 787 1,182 1,432 5,889 Washington ............. 19 9 18 31 1,867 865 1,968 3,182 West Virginia .......... ( 2 ) - ( 2 ) ( 2 ) ( 2 ) - ( 2 ) ( 2 ) Wisconsin .............. 67 30 37 100 8,092 2,978 4,378 13,593 Wyoming ................ - - - ( 2 ) - - - ( 2 ) Puerto Rico ............ 5 11 9 7 340 863 1,141 537 1 See footnote 1, table 2. 2 Data do not meet BLS or state agency disclosure standards. p = preliminary. NOTE: Dash represents zero.