Internet address: http://stats.bls.gov:80/newsrels.htm Technical information: (202) 606-6396 USDL 96-483 For release: 10:00 A.M. EST Media contact: 606-5902 Wednesday, November 20, 1996 BLS STARTS NEW MONTHLY SERIES ON MASS LAYOFFS WITH SEPTEMBER 1996 FIGURES The Bureau of Labor Statistics, U. S. Department of Labor, is issuing a new series on mass layoffs based on initial filings for unemployment insurance during the reference month. In the past, BLS has issued quarterly reports on mass layoffs that involve 50 or more workers from one establishment and are more than 30 days in duration. The new series will cover mass layoffs of 50 or more workers beginning in a given month, regardless of duration. Information on the length of the layoff will be obtained later for the quarterly release, which will include 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 3 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 April, May, and June of 1996 was 2,816 layoff events involving 266,205 initial claimants for unemployment insurance. The second quarter 1996 figures for mass layoffs lasting more than 30 days, however, were 1,247 events and 139,390 claimants. A little more than two-fifths (44 percent) of all mass layoffs in the April-June period lasted for more than a month. (See table 1.) The new monthly series will be available on a more current basis than the quarterly release. Mass Layoffs in September 1996 In September 1996, there were 498 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month. (See table 1.) Each action involved at least 50 persons from a single establishment, and the number of workers involved totaled 40,964 persons. Over the prior five quarters, from about 30 to 45 percent of new mass layoffs of 50 or more workers turned into extended mass layoffs that lasted for more than 30 days. See Technical Note for definitions. State Distribution In the month of September, the states with the largest numbers of initial claims filed in mass layoff events were: California 12,184 Pennsylvania 3,699 Illinois 2,845 South Carolina 1,948 Texas 1,904 These five states accounted for 55 percent of the initial claims reported and 58 percent of the total number of layoff events. (See table 2.) Layoffs in these states were primarily in business services (mostly in help supply) and electronic equipment manufacturing (largely in semiconductor firms). Comparing September 1996 to September 1995, 32 states and the District of Columbia reported fewer people who filed initial claims stemming from mass layoff events. California reported the sharpest decline in initial claims (8,461), largely due to fewer layoffs in motion pictures and business services. Maryland reported the largest over-the-year rise (1,081). States with the largest over-the-year changes in initial claims were: Decreases Increases California -8,461 Maryland 1,081 Illinois -3,692 Washington 542 Ohio -2,917 Kansas 277 Texas -2,723 Oregon 238 Pennsylvania -2,573 North Carolina 207 Industry Distribution Manufacturing industries accounted for 52 percent of all initial claims filed and 46 percent of all mass layoff events in September 1996. (See table 3.) Within manufacturing, slightly more layoff activity occurred in nondurable goods industries than in durable goods industries. Manufacturing industries which had the largest numbers of initial claimants were: Electronic and other electrical equipment 3,609 Food and kindred products 2,881 Apparel and other textile products 2,517 Textile mill products 2,455 Transportation equipment 2,034 Within nonmanufacturing industries (including agriculture), over 55 percent of the activity was in services (largely in business services) and retail trade (mostly in general merchandise stores). Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were: Business services 3,067 General merchandise stores 1,354 Agricultural services 1,011 Compared with September 1995, the reported number of layoff events and of related initial claims filings declined in most industries. The largest changes in initial claims from a year ago occurred in the following industries: Decreases Industrial machinery and equipment -4,726 Food and kindred products -3,281 Transportation equipment -3,192 General merchandise stores -3,005 Apparel and other textile products -2,656 Increases Electronic and other electrical equipment 1,306 Finance, taxation, and monetary policy 292 Rubber and miscellaneous plastics products 267 Transportation by air 196 Communications 178 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. This release is the first monthly report from the MLS program. 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. Layoff event. Fifty or more initial claims for unemployment insurance benefits filed against an establishment during a 5-week period. Table 1. Mass layoff events and initial claimants for unemployment insurance, July 1995 to September 1996 Total mass layoffs 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................. 2,792 290,513 902 144,578 32.3 October....................... 1,050 110,134 November...................... 1,248 130,092 December...................... 2,010 209,060 Fourth quarter................ 4,308 449,286 1,716 294,957 39.8 1996 January....................... 1,666 167,834 February...................... 918 74,984 March......................... 975 121,046 First quarter................. 3,559 363,864 1,350 213,253 37.9 April......................... 1,010 110,873 May........................... 913 78,045 June.......................... 893 77,287 Second quarter(2)............. 2,816 266,205 1,247 139,390 44.3 July.......................... 1,503 189,096 August........................ 869 76,462 September(3).................. 498 40,964 Third quarter(3).............. 2,870 306,522 (4) (4) (4) 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 for the District of Columbia and all states, except Michigan and Mississippi. 3 Data for total mass layoffs were reported for the District of Columbia and all states, except Michigan. 4 Data not available. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, September 1995 and September 1996 Mass layoff events Initial claimants for unemployment insurance State September September September September 1995 1996 1995 1996 Total(1)............... 684 498 73,088 40,964 Alabama.................. 4 5 313 330 Alaska................... 5 (2) 290 (2) Arizona.................. 8 (2) 567 (2) Arkansas................. 13 6 926 582 California............... 200 177 20,645 12,184 Colorado................. (2) - (2) - Connecticut.............. 4 (2) 328 (2) Delaware................. 3 - 1,256 - District of Columbia..... (2) - (2) - Florida.................. 37 25 2,619 1,612 Georgia.................. 10 7 857 487 Hawaii................... 4 3 319 306 Idaho.................... 3 (2) 286 (2) Illinois................. 32 23 6,537 2,845 Indiana.................. 5 8 590 614 Iowa..................... 10 3 852 288 Kansas................... - 5 - 277 Kentucky................. 8 (2) 1,152 (2) Louisiana................ 3 3 217 282 Maine.................... 10 (2) 1,105 (2) Maryland................. 9 9 771 1,852 Massachusetts............ 5 (2) 400 (2) Michigan................. 11 (1) 945 (1) Minnesota................ 10 (2) 2,132 (2) Mississippi.............. 5 3 400 149 Missouri................. 12 13 1,112 1,183 Montana.................. (2) (2) (2) (2) Nebraska................. (2) - (2) - Nevada................... (2) 3 (2) 260 New Hampshire............ - - - - New Jersey............... 16 12 1,369 1,124 New Mexico............... - - - - New York................. 12 9 825 913 North Carolina........... 6 9 579 786 North Dakota............. - - - - Ohio..................... 29 12 3,694 777 Oklahoma................. 3 - 238 - Oregon................... 7 13 731 969 Pennsylvania............. 81 53 6,272 3,699 Rhode Island............. 3 (2) 310 (2) South Carolina........... 19 14 3,671 1,948 South Dakota............. (2) - (2) - Tennessee................ 8 10 673 811 Texas.................... 32 22 4,627 1,904 Utah..................... (2) (2) (2) (2) Vermont.................. - - - - Virginia................. 16 8 1,445 1,237 Washington............... (2) 9 (2) 728 West Virginia............ 3 (2) 255 (2) Wisconsin................ 28 17 2,868 1,488 Wyoming.................. - - - - Puerto Rico.............. 4 6 414 678 1 For September 1996, data were reported for the District of Columbia and all states, except Michigan. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, September 1995 and September 1996 Mass layoff events Initial claimants for unemployment insurance Industry September September September September 1995 1996 1995 1996 Total, all industries(1)....................... 684 498 73,088 40,964 Agriculture....................................... 26 26 1,682 1,542 Nonagriculture.................................... 636 442 69,687 36,485 Manufacutring.................................... 355 231 42,769 21,391 Durable goods................................... 169 104 22,590 9,564 Lumber and wood products....................... 11 6 899 481 Furniture and fixtures......................... 5 (2) 338 (2) Stone, clay, and glass products................ 14 5 1,356 369 Primary metal industries....................... 19 11 3,016 775 Fabricated metal products...................... 24 10 2,156 659 Industrial machinery and equipment............. 23 13 5,817 1,091 Electronic and other electrical equipment...... 25 31 2,303 3,609 Transportation equipment....................... 31 18 5,226 2,034 Instruments and related products............... 10 (2) 969 (2) Miscellaneous manufacturing industries......... 7 5 510 295 Nondurable goods................................ 186 127 20,179 11,827 Food and kindred products...................... 57 36 6,162 2,881 Textile mill products.......................... 28 21 4,373 2,455 Apparel and other textile products............. 46 28 5,173 2,517 Paper and allied products...................... 10 9 823 747 Printing and publishing........................ (2) 15 (2) 866 Chemicals and allied products.................. 8 5 815 413 Petroleum and coal products.................... (2) (2) (2) (2) Rubber and miscellaneous plastics products..... 19 8 1,362 1,629 Leather and leather products................... 9 (2) 639 (2) Nonmanufacturing................................. 281 211 26,918 15,094 Mining.......................................... 3 5 175 504 Construction.................................... 24 27 1,705 1,617 Transportation and public utilities............. 27 26 2,091 1,881 Wholesale and retail trade...................... 87 51 9,625 3,450 Wholesale trade................................ 15 14 1,418 827 Retail trade................................... 72 37 8,207 2,623 Finance, insurance, and real estate............ 15 11 1,167 940 Services....................................... 115 81 11,194 5,911 Government..................................... 10 10 961 791 Not identified.................................... 22 30 1,719 2,937 1 For September 1996, data were reported for the District of Columbia and all states, except Michigan. 2 Data do not meet BLS or state agency disclosure standards.