Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 691-6392 USDL 01-33 For release: 10:00 A.M. EST Media contact: 691-5902 Thursday, February 1, 2001 MASS LAYOFFS IN DECEMBER 2000 In December 2000, there were 2,677 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 326,743. (See table 1.) The number of layoff events and initial claims for unemployment insurance were the highest for the month of December since the series began in 1995; part of the increase was due to a calendar effect, since December 2000 contained 5 weeks that ended in the month compared with 4 weeks in each of the prior four Decembers. The total of layoff events for all of 2000, at 15,738, and the total number of initial claimants, at 1,835,592, were higher than in 1999 (14,909 and 1,572,399, respectively). Additional information on the annual data is provided in the Review of 2000 section on page 2 of this release. 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 December 2000, manufacturing industries accounted for 39 percent of all mass layoff events and 50 percent of all initial claims filed. The highest number of initial claimants was in transportation equipment (40,342), primarily in motor vehicles. Other manufacturing industries with high numbers of initial claimants were electronic and other electrical equipment (15,035), industrial machinery and equipment (14,979), primary metal industries (12,796), food and kindred products (11,932), and rubber and miscellaneous plastic products (10,498). (See table 2.) - 2 - Services accounted for 17 percent of events and 16 percent of initial claimants during the month, mainly in business services (particularly help supply services) and motion pictures. Layoffs in these industries, however, are more likely than those in most other industries to last less than 30 days. Sixteen percent of events and 11 percent of initial claimants during the month were in construction, mostly in heavy construction. Retail trade accounted for 7 percent of all mass layoff events and initial claimants during the month, largely in eating and drinking places. An additional 6 percent of events and 3 percent of initial claimants were reported in agriculture, particularly in agricultural services (farm labor contractors). Compared with December 1999, the largest over-the-year increase in initial claims occurred in transportation equipment (+32,700), followed by business services (+11,411) and primary metal industries (+10,613). The largest decreases in initial claims occurred in coal mining (-1,094) and wholesale trade in nondurable goods (-908). Geographic Distribution In December, the number of initial claims due to mass layoffs was higher in the Midwest (157,486) than in any other region and represented almost half the claims for the month. (See table 3.) Layoffs in transportation equipment accounted for 21 percent of the claims in the Midwest. The fewest number of mass-layoff initial claims was reported in the Northeast region (40,688). Over-the-year increases in mass layoff-related initial claims were reported in all four regions: Midwest (+89,681), South (+29,848), West (+25,742), and Northeast (+19,091). 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 East North Central division. Among the 50 states and the District of Columbia, California accounted for the largest number of initial claims filed in mass layoff events (52,576), primarily in motion pictures and business services. Other states with large numbers of mass-layoff initial claims were Michigan (43,436), Illinois (29,157), and Pennsylvania (20,719). These four states accounted for 45 percent of all layoff events and initial claims for unemployment insurance. (See table 4.) From December 1999 to December 2000, 44 states reported over-the-year increases in initial claims, led by Michigan (+26,181). Five states and the District of Columbia reported over-the-year decreases in initial claims, with Oklahoma reporting the largest decrease (-799). - 3 - Review of 2000 In all of 2000, there were 15,738 layoff events and 1,835,592 initial claimants for unemployment insurance in the 50 states and the District of Columbia. Both the number of events and the number of initial claimants were higher than in 1999. (See table A.) In 2000, manufacturing accounted for 35 percent of all mass layoff events and 42 percent of initial claims filed, essentially unchanged from 1999 (33 percent and 40 percent, respectively) and the same as in 1998. Initial claim filings were most numerous in transportation equipment (192,047), followed by food and kindred products (88,942) and industrial machinery and equipment (73,215). Compared with 1999, the largest increase in initial claims occurred in transportation equipment (+93,301). The largest over-the-year decrease in initial claims occurred in industrial machinery and equipment (-14,148). In 2000, the number of initial claims due to mass layoffs was higher in the West (656,889) than any other region. Layoffs in business services, motion pictures, and agricultural services accounted for 43 percent of the claims in the West. The fewest number of mass-layoff initial claims was reported in the Northeast region (235,083). Over-the-year increases in mass- layoff initial claims occurred in each of the four regions, with the largest in the Midwest (+109,158). Among the 50 states and the District of Columbia, California had the largest number of initial claims filed in mass layoff events (536,673), which reflected an over-the-year increase of 66,859. Texas reported the largest over-the-year decrease (-10,591). Table A. Number of mass layoff events and initial claimants for unemployment insurance, 1996-2000 --------------------------------------------------------- | | | | Initial claimants for Year | Layoff events | unemployment insurance | | --------------------------------------------------------- 1996 | 14,111 | 1,437,628 1997 | 14,960 | 1,542,543 1998 | 15,904 | 1,771,069 1999 | 14,909 | 1,572,399 2000p | 15,738 | 1,835,592 --------------------------------------------------------- p=preliminary. 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 December 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 .................... 874 103,755 November(p)................. 1,697 216,514 December(p)................. 2,677 326,743 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 December October November December December October November December 1999 2000 2000(p) 2000(p) 1999 2000 2000(p) 2000(p) Total(1) ........................................ 1,509 874 1,697 2,677 162,381 103,755 216,514 326,743 Total, private ....................................... 1,458 826 1,651 2,605 157,932 98,349 212,318 320,875 Agriculture ........................................ 120 145 254 152 8,730 13,631 21,916 11,007 Nonagriculture ..................................... 1,314 670 1,374 2,388 146,160 82,285 186,788 301,367 Manufacturing .................................... 444 321 607 1,056 59,141 48,588 92,805 164,578 Durable goods .................................. 237 175 363 676 35,086 34,544 59,217 118,984 Lumber and wood products ..................... 37 19 61 88 3,170 1,819 7,725 9,636 Furniture and fixtures ....................... 9 10 20 43 1,076 944 2,576 5,735 Stone, clay, and glass products .............. 32 ( 2 ) 26 56 3,817 ( 2 ) 2,559 7,397 Primary metal industries ..................... 15 20 35 75 2,183 2,857 4,643 12,796 Fabricated metal products .................... 16 20 44 89 1,290 1,737 4,332 9,500 Industrial machinery and equipment ........... 34 22 48 88 6,581 6,567 9,899 14,979 Electronic and other electrical equipment .... 24 14 32 65 6,477 1,865 7,218 15,035 Transportation equipment ..................... 44 57 77 139 7,642 17,704 18,322 40,342 Instruments and related products ............. 8 6 8 10 759 480 769 1,080 Miscellaneous manufacturing industries ....... 18 ( 2 ) 12 23 2,091 ( 2 ) 1,174 2,484 Nondurable goods ............................... 207 146 244 380 24,055 14,044 33,588 45,594 Food and kindred products .................... 70 64 84 98 8,105 6,729 9,927 11,932 Tobacco products ............................. 3 - - 4 367 - - 338 Textile mill products ........................ 18 14 48 50 2,741 1,696 9,379 7,874 Apparel and other textile products ........... 42 30 37 66 4,193 2,281 4,147 6,395 Paper and allied products .................... 5 8 16 27 422 695 2,243 2,876 Printing and publishing ...................... 8 ( 2 ) 7 16 672 ( 2 ) 585 1,788 Chemicals and allied products ................ 4 6 6 14 227 438 420 1,201 Petroleum and coal products .................. 12 ( 2 ) 6 14 1,208 ( 2 ) 548 1,437 Rubber and miscellaneous plastics products ... 36 14 31 81 4,145 1,185 5,182 10,498 Leather and leather products ................. 9 ( 2 ) 9 10 1,975 ( 2 ) 1,157 1,255 Nonmanufacturing ................................. 870 349 767 1,332 87,019 33,697 93,983 136,789 Mining ......................................... 19 ( 2 ) 9 26 2,231 ( 2 ) 984 2,379 Construction ................................... 269 58 241 433 23,467 4,929 22,983 37,175 Transportation and public utilities ............ 77 29 45 152 11,644 3,116 4,811 17,514 Wholesale and retail trade ..................... 200 87 139 247 20,806 7,815 15,743 26,324 Wholesale trade ............................. 35 17 32 48 4,503 1,191 2,649 4,796 Retail trade ................................ 165 70 107 199 16,303 6,624 13,094 21,528 Finance, insurance, and real estate ............ 24 ( 2 ) 18 26 1,804 ( 2 ) 1,562 2,177 Services ....................................... 281 155 315 448 27,067 15,842 47,900 51,220 Not identified ..................................... 24 11 23 65 3,042 2,433 3,614 8,501 Government ........................................... 51 48 46 72 4,449 5,406 4,196 5,868 Federal ............................................ 5 18 15 6 688 2,397 1,275 583 State .............................................. 18 12 20 20 1,761 1,355 2,002 1,705 Local .............................................. 28 18 11 46 2,000 1,654 919 3,580 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 December October November December December October November December 1999 2000 2000(p) 2000(p) 1999 2000 2000(p) 2000(p) United States(1) ..... 1,509 874 1,697 2,677 162,381 103,755 216,514 326,743 Northeast .................... 197 110 187 397 21,597 9,040 21,489 40,688 New England .............. 41 16 30 95 4,598 1,293 2,926 10,739 Middle Atlantic .......... 156 94 157 302 16,999 7,747 18,563 29,949 South ........................ 245 217 329 487 26,449 26,981 44,026 56,297 South Atlantic ........... 119 91 154 246 12,019 12,727 24,888 29,409 East South Central ....... 36 42 68 119 3,652 3,868 7,936 14,617 West South Central ....... 90 84 107 122 10,778 10,386 11,202 12,271 Midwest ...................... 531 180 464 1,079 67,805 30,047 65,286 157,486 East North Central ....... 385 144 361 837 47,465 24,434 52,987 125,559 West North Central ....... 146 36 103 242 20,340 5,613 12,299 31,927 West ......................... 536 367 717 714 46,530 37,687 85,713 72,272 Mountain ................. 70 35 66 94 6,733 4,185 7,552 9,093 Pacific .................. 466 332 651 620 39,797 33,502 78,161 63,179 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 December October November December December October November December 1999 2000 2000(p) 2000(p) 1999 2000 2000(p) 2000(p) Total(1) ................. 1,509 874 1,697 2,677 162,381 103,755 216,514 326,743 Alabama ..................... 7 7 13 17 768 450 2,039 2,086 Alaska ...................... ( 2 ) ( 2 ) 6 7 ( 2 ) ( 2 ) 399 619 Arizona ..................... 4 9 3 6 279 959 274 408 Arkansas .................... 17 5 13 14 2,187 558 1,254 1,765 California .................. 410 302 581 534 33,517 30,578 71,002 52,576 Colorado .................... 10 4 8 12 943 380 850 983 Connecticut ................. ( 2 ) 3 3 7 ( 2 ) 247 233 677 Delaware .................... ( 2 ) - 3 ( 2 ) ( 2 ) - 2,368 ( 2 ) District of Columbia ........ 5 ( 2 ) - 3 590 ( 2 ) - 265 Florida ..................... 34 32 34 66 2,504 2,880 2,240 4,956 Georgia ..................... 18 14 19 29 1,378 1,233 2,187 2,965 Hawaii ...................... 3 3 3 ( 2 ) 342 174 285 ( 2 ) Idaho ....................... 13 6 14 17 1,202 801 1,795 2,201 Illinois .................... 98 39 70 157 12,107 5,692 16,382 29,157 Indiana ..................... 37 11 48 95 7,911 1,216 6,698 17,391 Iowa ........................ 37 9 25 67 4,931 736 4,355 9,619 Kansas ...................... 10 3 13 19 1,023 2,488 1,212 1,949 Kentucky .................... 10 15 24 68 936 1,565 3,711 9,418 Louisiana ................... 12 13 24 20 801 1,299 2,214 1,345 Maine ....................... 7 3 ( 2 ) 10 494 171 ( 2 ) 1,168 Maryland .................... 5 4 6 9 507 354 724 709 Massachusetts ............... 20 5 16 41 2,169 507 1,284 3,887 Michigan .................... 132 23 90 301 17,255 3,537 9,558 43,436 Minnesota ................... 41 10 45 55 5,209 1,104 4,711 7,140 Mississippi ................. ( 2 ) 12 16 11 ( 2 ) 950 1,041 1,110 Missouri .................... 55 13 17 93 8,654 1,122 1,730 12,435 Montana ..................... ( 2 ) - 4 4 ( 2 ) - 455 585 Nebraska .................... ( 2 ) ( 2 ) ( 2 ) 4 ( 2 ) ( 2 ) ( 2 ) 367 Nevada ...................... 31 13 23 44 3,267 1,578 2,847 4,091 New Hampshire ............... ( 2 ) ( 2 ) ( 2 ) 10 ( 2 ) ( 2 ) ( 2 ) 1,445 New Jersey .................. 33 14 31 51 3,063 1,229 4,912 5,250 New Mexico .................. ( 2 ) 3 - 5 ( 2 ) 467 - 292 New York .................... 33 12 22 41 2,750 1,020 2,287 3,980 North Carolina .............. 14 15 15 25 1,466 3,717 1,987 2,893 North Dakota ................ ( 2 ) - ( 2 ) ( 2 ) ( 2 ) - ( 2 ) ( 2 ) Ohio ........................ 57 34 53 142 4,852 9,611 6,756 18,623 Oklahoma .................... 10 ( 2 ) 9 13 1,736 ( 2 ) 2,155 937 Oregon ...................... 33 7 30 42 4,052 638 3,293 5,545 Pennsylvania ................ 90 68 104 210 11,186 5,498 11,364 20,719 Rhode Island ................ 9 ( 2 ) 5 19 1,413 ( 2 ) 518 2,522 South Carolina .............. 20 11 46 51 1,944 2,812 9,339 8,404 South Dakota ................ - - - 3 - - - 362 Tennessee ................... 17 8 15 23 1,691 903 1,145 2,003 Texas ....................... 51 65 61 75 6,054 8,477 5,579 8,224 Utah ........................ 8 - 13 6 745 - 1,276 533 Vermont ..................... 3 3 3 8 223 236 281 1,040 Virginia .................... 22 12 29 59 3,585 1,432 5,889 8,561 Washington .................. 18 18 31 36 1,674 1,968 3,182 4,379 West Virginia ............... - ( 2 ) ( 2 ) ( 2 ) - ( 2 ) ( 2 ) ( 2 ) Wisconsin ................... 61 37 100 142 5,340 4,378 13,593 16,952 Wyoming ..................... - - ( 2 ) - - - ( 2 ) - Puerto Rico ................. 11 9 7 18 1,132 1,141 537 2,413 1 See footnote 1, table 2. 2 Data do not meet BLS or state agency disclosure standards. p = preliminary. NOTE: Dash represents zero.