Beginning with the release of extended mass layoff data on May 16, 2007, a number of improvements were made in the collection and presentation of data on economic reasons for layoffs. These enhancements were based on an examination of the old MLS layoff reasons, public literature sources, and comments from academia.
The new reason for layoff structure improves the former list of reasons by developing more descriptive reason titles and enhancing and clarifying definitions. Four new reasons for layoffs were added domestic competition, excess inventory/saturated marketplace, hazardous work environment, and cost control/cost cutting/increase profitability. Moreover, seven higher-level categories business demand, disaster/safety, financial, organization, production, seasonal, and other/miscellaneous are identified within which the detailed economic reasons are classified. The classification chart and definitions for both the economic reasons for layoff and the higher level structure can be found in the document, "New MLS Economic Reasons" (PDF). A crosswalk table that maps the former list of MLS layoff reasons into the new structure can be found in the document, "Crosswalk Relating Old versus New Reasons for Extended Mass Layoffs Events" (PDF). Because of these changes, data beginning with the first quarter of 2007 are not strictly comparable to previous quarters.
Last Modified Date: May 17, 2007