Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 98-426 For release: 10:00 A.M. EDT Media contact: 606-5902 Thursday, October 22, 1998 MASS LAYOFFS IN JULY 1998 In July 1998, there were 1,862 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, and the number of workers involved totaled 235,996. Both the number of layoff events and initial claimants for unemployment insurance were somewhat lower than in July 1997. (See table 1.) 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, 3,641 layoff events involving 424,018 initial claimants for unemployment insurance occurred in April, May, and June of 1998 combined. The second-quarter 1998 figures for mass layoffs lasting more than 30 days, however, were 1,500 events and 260,837 claimants. Forty-one percent of all mass layoffs in the April-June period lasted for more than a month. (See table 1.) In all quarters for which data are available, the proportion of mass layoffs that became ?extended? mass layoffs varied from about 29 to 47 percent. Industry Distribution In July 1998, manufacturing industries accounted for 51 percent of all mass layoff events and 61 percent of the initial claims filed. Manufacturing industries that had the largest numbers of initial claimants were transportation equipment (43,996), primarily in motor vehicles and car bodies and motor vehicle parts and accessories; electronic equipment (12,702), mostly in semiconductors; and industrial machinery and equipment (12,258), particularly in lawn and garden equipment. (See table 3.) Most initial claimants associated with layoff events in both transportation equipment and electronic equipment were involved in strike-related plant shutdowns. In nonmanufacturing industries, services accounted for 18 percent of all mass layoff events and 15 percent of all initial claims filed, and the layoffs occurred mostly in business services (largely in help supply services) and in motion pictures (mostly in motion pictures and video production). Layoffs in business services (specifically help supply services) and the motion picture industry are more likely than those in other industries to last less than 30 days. Retail trade contributed 6 - 2 - percent to layoff events and 5 percent to initial claimants during the month, largely in general merchandise stores. Layoffs in government establishments accounted for 6 percent of all layoff events and 5 percent of all initial claimants, were most prevalent among elementary and secondary schools, and coincided with the end of the school year. Compared with July 1997, the largest increases in initial claims occurred in electronic equipment (6,184), transportation equipment (5,514), and primary metal industries (4,649). The largest over-the-year decreases in initial claims occurred in business services (-5,762), local urban transit (-5,536), and agricultural crops (-3,722). State Distribution Among the 50 states and the District of Columbia reporting data for July, California had the largest number of initial claims filed in mass layoff events (33,663), primarily in business services, followed closely by Michigan (33,520), mostly due to strike-related layoffs in transportation equipment, and Ohio (24,126), largely in transportation equipment. These three states accounted for about 38 percent of all layoff events and initial claims. (See table 2.) From July 1997 to July 1998, Wisconsin reported the largest over-the- year rise in initial claims (5,535), primarily in transportation equipment, followed by South Carolina (4,774), Michigan (4,432), and Ohio (4,306). California had the largest over-the-year decline in initial claims (-25,616), mostly in business services. 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, July 1996 to July 1998 Extended mass layoffs lasting more than 30 days Date Total mass layoffs Event realization Events Initial Events Initial rate (1) claimants claimants 1996 July ..................... 1,534 192,155 August ................... 918 83,166 September ................ 513 42,376 Third quarter ............ 2,965 317,697 1,020 (r)200,423 34.4 October .................. 1,289 131,850 November ................. 1,433 130,774 December ................. 1,824 204,123 Fourth quarter ........... 4,546 466,747 1,915 (r)384,161 42.1 1997 January .................. 2,139 212,860 February ................. 755 63,352 March .................... 783 84,069 First quarter ............ 3,677 360,281 1,317 (r)253,424 35.8 April .................... 1,269 152,168 May ...................... 1,152 101,476 June ..................... 1,238 121,256 Second quarter ........... 3,659 374,900 1,574 (r)319,617 43.0 July ..................... 1,899 237,410 August ................... 973 99,513 September ................ 548 59,062 Third quarter ............ 3,420 395,985 1,077 (r)216,474 31.5 October .................. 1,414 139,297 November ................. 1,156 100,051 December ................. 1,634 172,029 Fourth quarter ........... 4,204 411,377 1,677 (r)311,536 39.9 1998 January .................. 2,360 255,203 February ................. 970 81,455 March .................... 762 78,210 First quarter(r) ......... 4,092 414,868 1,289 237,528 31.5 April .................... 1,253 132,476 May ...................... 1,180 107,952 June ..................... 1,208 183,590 Second quarter ........... 3,641 424,018 (p)1,500 (p)260,837 41.2 July ..................... 1,862 235,996 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. r = revised. p = preliminary. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, July 1997 and July 1998 Initial claimants for Mass layoff events unemployment insurance State July July July July 1997 1998 1997 1998 Total( 1 ).................. 1,899 1,862 237,410 235,996 Alabama ....................... 7 6 1,184 1,147 Alaska ........................ - ( 2 ) - ( 2 ) Arizona ....................... 14 15 1,138 1,559 Arkansas ...................... 18 16 2,211 1,775 California .................... 593 378 59,279 33,663 Colorado ...................... ( 2 ) 5 ( 2 ) 643 Connecticut ................... ( 2 ) 6 ( 2 ) 423 Delaware ...................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) District of Columbia .......... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Florida ....................... 76 55 4,694 4,411 Georgia ....................... 18 19 1,518 1,901 Hawaii ........................ 3 3 186 209 Idaho ......................... 6 13 415 1,596 Illinois ...................... 51 58 9,031 10,363 Indiana ....................... 51 56 9,526 7,394 Iowa .......................... 17 19 1,829 2,788 Kansas ........................ 3 5 586 747 Kentucky ...................... 18 31 1,800 4,200 Louisiana ..................... 11 19 860 1,965 Maine ......................... 5 11 357 1,222 Maryland ...................... 29 5 6,433 397 Massachusetts ................. 11 25 1,187 2,347 Michigan ...................... 179 202 29,088 33,520 Minnesota ..................... 11 13 1,455 1,673 Mississippi ................... 8 17 539 2,176 Missouri ...................... 56 46 9,758 8,784 Montana ....................... 4 3 463 479 Nebraska ...................... - 3 - 577 Nevada ........................ 7 8 582 649 New Hampshire ................. 7 8 723 704 New Jersey .................... 39 42 3,247 3,508 New Mexico .................... 3 4 299 550 New York ...................... 107 91 16,025 10,393 North Carolina ................ 8 7 626 1,183 North Dakota .................. - ( 2 ) - ( 2 ) Ohio .......................... 90 120 19,820 24,126 Oklahoma ...................... 9 12 1,317 1,185 Oregon ........................ 10 25 948 2,631 Pennsylvania .................. 167 165 16,901 18,973 Rhode Island .................. 3 4 198 441 South Carolina ................ 52 79 6,254 11,028 South Dakota .................. - - - - Tennessee ..................... 22 12 2,721 1,040 Texas ......................... 49 70 7,513 8,572 Utah .......................... - 5 - 575 Vermont ....................... - - - - Virginia ...................... 39 60 7,534 7,429 Washington .................... 16 20 1,004 1,564 West Virginia ................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) Wisconsin ..................... 72 95 7,291 12,826 Wyoming ....................... - - - - Puerto Rico ................... 17 17 1,934 1,516 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Data for total mass layoff events and initial claimants for unemployment insurance have been revised for July 1997 due to the inclusion of new data for Louisiana and Oklahoma. Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, July 1997 and July 1998 Initial claimants for Mass layoff events unemployment insurance Industry July July July July 1997 1998 1997 1998 Total( 1 ).......................................... 1,899 1,862 237,410 235,996 Total, private .......................................... 1,785 1,742 224,001 223,905 Agriculture ........................................... 153 83 11,658 6,787 Nonagriculture ........................................ 1,550 1,602 198,501 209,676 Manufacturing ....................................... 767 942 118,019 144,634 Durable goods ..................................... 414 570 78,665 100,770 Lumber and wood products ........................ 33 29 4,318 3,115 Furniture and fixtures .......................... 28 32 3,888 5,810 Stone, clay, and glass products ................. 19 11 2,390 1,373 Primary metal industries ........................ 28 51 2,735 7,384 Fabricated metal products ....................... 69 105 8,507 11,496 Industrial machinery and equipment .............. 47 84 9,982 12,258 Electronic and other electrical equipment ....... 49 84 6,518 12,702 Transportation equipment ........................ 118 145 38,482 43,996 Instruments and related products ................ 10 16 801 1,291 Miscellaneous manufacturing industries .......... 13 13 1,044 1,345 Nondurable goods .................................. 353 372 39,354 43,864 Food and kindred products ....................... 72 88 6,469 9,999 Tobacco products ................................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Textile mill products ........................... 39 54 4,459 6,872 Apparel and other textile products .............. 96 95 10,671 10,030 Paper and allied products ....................... 13 14 1,353 1,376 Printing and publishing ......................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Chemicals and allied products ................... 11 10 1,241 1,454 Rubber and miscellaneous plastics products ...... 88 87 11,769 11,391 Leather and leather products .................... 21 17 2,507 2,234 Nonmanufacturing .................................... 783 660 80,482 65,042 Mining ............................................ 4 23 334 1,615 Construction ...................................... 71 51 5,277 4,142 Transportation and public utilities ............... 116 85 13,123 8,229 Wholesale and retail trade ........................ 174 153 16,890 14,999 Wholesale trade ................................ 30 37 2,396 3,395 Retail trade ................................... 144 116 14,494 11,604 Finance, insurance, and real estate ............... 19 19 1,601 1,666 Services .......................................... 399 329 43,257 34,391 Not identified ........................................ 82 57 13,842 7,442 Government .............................................. 114 120 13,409 12,091 Federal ............................................... 25 18 3,322 3,126 State ................................................. 23 28 2,536 2,312 Local ................................................. 66 74 7,551 6,653 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Data for total mass layoff events and initial claimants for unemployment insurance have been revised for July 1997 due to the inclusion of new data for Louisiana and Oklahoma. Dash represents zero.