Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 98-160 For release: 10:00 A.M. EDT Media contact: 606-5902 Friday, April 24, 1998 MASS LAYOFFS IN JANUARY 1998 In January 1998, there were 2,360 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month, according to preliminary data from the U.S. Department of Labor's Bureau of Labor Statistics. Each action involved at least 50 persons from a single establishment, and a total of 255,203 workers were involved. Both the number of layoff events and the associated number of initial claimants for unemployment insurance in January 1998 were higher than in January a year ago. The monthly series in this release covers 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. See the Technical Note for more detailed definitions. Because the 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. For example, 4,204 layoff events involving 411,377 initial claimants for unemployment insurance occurred in October, November, and December of 1997 combined. The fourth-quarter 1997 figures for mass layoffs lasting more than 30 days, however, were 1,637 events and 226,722 claimants. Thirty- nine percent of all mass layoffs in the October-December period lasted for more than a month. (See table 1.) In all quarters for which data are available, the proportion of "extended" mass layoffs to all mass layoffs varied from about 29 to 47 percent. Industry Distribution In January 1998, manufacturing industries accounted for 35 percent of all mass layoff events and 41 percent of all initial claims filed. (See table 3.) Manufacturing industries that had the largest numbers of initial claimants were transportation equipment (24,979), primarily in motor vehicles and car bodies; food and kindred products (14,397), mostly in canned fruits and vegetables; and lumber and wood products (10,327), mainly in millwork. Within private-sector nonmanufacturing industries (including agriculture), the services industry accounted for 36 percent of the layoff events and 45 percent of the initial claims (primarily in business services and motion pictures). It should be noted that layoff events in business services (specifically help supply services) and the motion picture industry are more likely than those in other industries to last less than 31 days. Retail trade (mostly in general merchandise stores) contributed an additional 19 percent to layoff events and 21 percent to initial claims. Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were business services (31,778), motion pictures (13,171), and general merchandise stores (12,019). Compared with January 1997, the largest increases in initial claims occurred in business services (11,870) and transportation equipment (11,517). Hotel and other lodging places experienced the largest over-the- year decrease in initial claims (-1,861). State Distribution Among the 50 states and the District of Columbia reporting preliminary data for January, California had the largest number of initial claims filed in mass layoff events (85,698), followed by Ohio (29,136), and Pennsylvania (23,654). These three states accounted for over half of the number of layoff events and initial claims reported. California alone accounted for 35 percent of the layoff events and 34 percent of the initial claims. (See table 2.) From January 1997 to January 1998, California reported the largest over- the-year rise in initial claims (25,345), primarily in business services and motion pictures. Texas had the sharpest over-the-year decline in initial claims (-2,877), mostly in apparel and other textile products. 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 one month on a quarterly basis. 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: 202-606-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, October 1996 to January 1998 Extended mass layoffs Event Date Total mass layoffs lasting more than 30 days realization rate(1) Events Initial Events Initial claimants claimants 1996 October................ 1,289 131,850 November............... 1,433 130,774 December............... 1,824 204,123 Fourth quarter..... 4,546 466,747 1,913 375,338 42.1 1997 January................ (r)2,139 (r)212,860 February............... (r)755 (r)63,352 March.................. (r)783 (r)84,069 First quarter...... 3,677 360,281 1,317 245,610 35.8 April ................. (r)1,269 (r)152,168 May.................... (r)1,152 (r)101,476 June .................. (r)1,238 (r)121,256 Second quarter..... 3,659 374,900 1,574 306,750 43.0 July .................. (r)1,899 (r)237,410 August ................ (r)973 (r)99,513 September.............. (r)548 (r)59,062 Third quarter...... 3,420 395,985 1,078 208,037 31.5 October................ (r)1,414 (r)139,297 November .............. (r)1,156 (r)100,051 December .............. (r)1,634 (r)172,029 Fourth quarter..... 4,204 411,377 1,637 226,722 38.9 1998 January................ 2,360 255,203 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. r = revised. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, January 1997 and January 1998 Mass layoff events Initial claimants for unemployment insurance State January January January January 1997 1998 1997 1998 Total( 1 )............................ (r)2,139 2,360 (r)212,860 255,203 Alabama ................................. 9 7 754 822 Alaska .................................. 9 9 793 769 Arizona ................................. 12 8 998 639 Arkansas ................................ ( 2 ) 9 ( 2 ) 1,407 California .............................. 678 829 60,353 85,698 Colorado ................................ 23 12 1,536 989 Connecticut ............................. 8 8 697 568 Delaware ................................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) District of Columbia .................... 5 5 618 393 Florida ................................. 40 61 2,250 4,429 Georgia ................................. 20 22 2,073 1,988 Hawaii .................................. 7 6 655 548 Idaho ................................... 6 12 595 799 Illinois ................................ 72 73 6,267 9,329 Indiana ................................. 41 10 3,607 947 Iowa .................................... 25 29 3,748 3,122 Kansas .................................. 10 6 1,011 778 Kentucky ................................ ( 2 ) 19 ( 2 ) 2,957 Louisiana ............................... (r)19 25 (r)1,210 2,253 Maine ................................... 20 24 1,406 1,753 Maryland ................................ 30 23 2,536 2,562 Massachusetts ........................... 22 15 2,003 1,083 Michigan ................................ 31 74 2,885 10,622 Minnesota ............................... 16 15 1,846 1,471 Mississippi ............................. 8 12 577 890 Missouri ................................ 60 51 6,047 4,660 Montana ................................. 6 3 412 278 Nebraska ................................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nevada .................................. 26 21 2,609 1,661 New Hampshire ........................... ( 2 ) 9 ( 2 ) 778 New Jersey .............................. 43 52 3,649 4,387 New Mexico .............................. 7 9 510 500 New York ................................ (r)100 57 (r)8,351 6,899 North Carolina .......................... 18 21 2,684 2,063 North Dakota ............................ ( 2 ) - ( 2 ) - Ohio .................................... 158 150 26,444 29,136 Oklahoma ................................ (r)8 12 (r)900 822 Oregon .................................. 37 31 3,034 2,923 Pennsylvania ............................ 206 251 20,291 23,654 Rhode Island ............................ 12 11 1,099 837 South Carolina .......................... 51 56 6,251 6,794 South Dakota ............................ ( 2 ) 3 ( 2 ) 337 Tennessee ............................... 16 22 949 1,663 Texas ................................... 100 86 12,059 9,182 Utah .................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Vermont ................................ - ( 2 ) - ( 2 ) Virginia ................................ 32 42 3,051 4,630 Washington .............................. 18 18 1,614 1,185 West Virginia ........................... ( 2 ) 3 ( 2 ) 224 Wisconsin ............................... 117 135 13,088 15,419 Wyoming ................................. - - - - Puerto Rico ............................. 10 17 892 1,952 1 For January 1998, data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. r = revised. NOTE: Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, January 1997 and January 1998 Mass layoff events Initial claimants for unemployment insurance Industry January January January January 1997 1998 1997 1998 Total( 1 )....................................... 2,139 2,360 212,860 255,203 Total, private......................................... 2,063 2,254 205,021 244,729 Agriculture.......................................... 106 131 7,237 9,021 Nonagriculture....................................... 1,903 2,067 191,156 231,063 Manufacturing...................................... 725 825 82,681 104,292 Durable Goods................................... 365 419 46,745 62,990 Lumber and wood products..................... 73 77 7,915 10,327 Furniture and fixtures....................... 23 19 3,086 2,308 Stone, clay, and glass products.............. 38 34 3,046 2,898 Primary metal industries..................... 29 37 2,958 4,115 Fabricated metal products.................... 42 58 3,437 5,630 Industrial machinery and equipment........... 29 36 4,828 3,929 Electronic and other electrical equipment.... 49 55 6,066 6,015 Transportation equipment..................... 55 72 13,462 24,979 Instruments and related products............. 10 12 611 1,005 Miscellaneous manufacturing industries....... 17 19 1,336 1,784 Nondurable goods................................ 360 406 35,936 41,302 Tobacco products............................. - ( 2 ) - ( 2 ) Food and kindred products.................... 121 142 11,291 14,397 Textile mill products........................ 34 47 4,527 5,783 Apparel and other textile products........... 101 95 9,908 10,234 Paper and allied products.................... 17 26 1,302 1,810 Printing and publishing...................... 19 21 1,787 1,812 Chemicals and allied products................ 7 11 696 769 Petroleum and coal products.................. 7 ( 2 ) 586 ( 2 ) Rubber and miscellaneous plastics products... 40 48 4,725 5,035 Leather and leather products................. 14 12 1,114 1,286 Nonmanufacturing................................... 1,178 1,242 108,475 126,771 Mining........................................... 22 14 1,868 891 Construction..................................... 307 278 21,733 19,563 Transportation and public utilities.............. 100 125 8,926 12,344 Wholesale and retail trade....................... 302 306 29,322 31,745 Wholesale trade............................... 41 41 3,154 3,574 Retail trade.................................. 261 265 26,168 28,171 Finance, insurance, and real estate.............. 34 23 2,828 1,781 Services......................................... 413 496 43,798 60,447 Not identified....................................... 54 56 6,628 4,645 Government............................................. 76 106 7,839 10,474 Federal............................................ 28 24 3,771 2,916 State.............................................. 16 29 1,373 3,003 Local.............................................. 32 53 2,695 4,555 1 For January 1998, data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero. NOTE: Data for total mass layoff events and initial claimants for unemployment insurance have been revised for January 1997 due to the inclusion of new data for Louisiana, New York, and Oklahoma.