Technical information: (202) 691-6392 USDL 01-370 http://www.bls.gov/mls/ For release: 10:00 A.M. EDT Media contact: 691-5902 Friday, October 26, 2001 MASS LAYOFFS IN SEPTEMBER 2001 In September 2001, there were 1,316 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 sin- gle establishment, and the number of workers involved totaled 158,859. (See table 1.) The number of layoff events and initial claimants for unemployment insurance were the highest for the month of September since the series began in April 1995. In January-September 2001, the total number of events, at 14,405, and initial claims, at 1,723,176, were substantially higher than in January-September 2000, at 10,490 and 1,188,580, respectively. The mass layoff data for September includes 3 weeks of initial claims filings that took place in the weeks that include and follow the terrorist attacks of September 11--the weeks ending September 15, 22, and 29. In addition to the tragic loss of life, the attacks caused many businesses to curtail activities and lay off workers. During those 3 weeks, 1,013 mass layoff events occurred that involved 117,711 workers. It is not possible at this time to determine which claims filings can be directly or indirectly attributed to the September 11 attacks. (See box on page 2.) It is clear, however, that claims filings in scheduled air transportation and in hotels and motels are likely to be related to the attacks. In January-August 2001, 18 layoff events and 1,523 initial claimants were reported in the scheduled air transportation industry. In September alone, there were 29 events and 6,152 initial claimants in this industry. In hotels and motels, 189 events and 15,653 initial claimants were registered over the January-August period. In September, another 123 events and 20,648 claimants were attributed to this industry. Industry Distribution Manufacturing industries accounted for 37 percent of all mass layoff events and of all initial claims filed in September 2001. A year earlier, layoffs in manufacturing accounted for 33 percent of events and 44 percent of initial claims. Manufacturing industries with the highest number of initial claimants were industrial machinery and equipment (10,479, largely in construction machinery), transportation equipment (9,960, mostly in motor vehicles and car bodies and in motor vehicle parts and accessories), and electronic and other electrical equipment (7,159, primarily in semiconductors and related devices). (See table 2.) Compared with September 2000, 14 of the 18 manufacturing industry groups that had mass layoff events had increases in the number of initial claims. Services accounted for 29 percent of events and 37 percent of initial claims filed during the month. The number of initial claim filings in services more than doubled over the year, rising to 58,110. Layoffs in services were concentrated in business services (particularly help supply services) and in hotels and other lodging places. - 2 - Seven percent of all layoff events and initial claims during the month were in transportation and public utilities, largely in scheduled air transportation. Retail trade accounted for 8 percent of events and 7 percent of initial claims during the month, mostly in eating places and in department stores. Agriculture accounted for an additional 6 percent of events and 3 percent of initial claims, primarily in agricultural services. Compared with September 2000, the largest increases in initial claims were reported in hotels and other lodging places (+19,730), business services (+8,480), transportation by air (+6,776), and electronic and other electrical equipment (+5,689). The largest over-the-year decrease in initial claims was reported in transportation equipment (-8,164). Geographic Distribution In September, the highest number of initial claims due to mass layoffs was in the West--73,041, largely in business services and in hotels and other lodging places. (See table 3.) These two industries accounted for 44 percent of all claimants in the region. The Northeast region continued to register the lowest number of mass layoff-related initial claims, 23,678. Over the year, all four regions (Northeast, South, Midwest, and West) reported increases in mass layoff events and initial claims, with the largest increase occurring in the West (+22,827). Seven of the nine geographic divisions had over-the-year increases in the number of initial claims associated with mass layoffs, with the largest increases in the Middle Atlantic and Pacific divisions. Over-the-year declines were reported in the New England and West North Central divisions. California had the largest number of initial claims filed in mass layoff events, 54,267, mostly in help supply services and in motion picture and video production, followed by Nevada (10,762, primarily in hotels and motels), Illinois (9,708, largely in scheduled air transportation), and New York (9,427, mostly in hotels and motels). These four states accounted for 48 percent of all layoff events and 53 percent of all initial claims for unemployment insurance. (See table 4.) In September 2001, California reported the largest over-the-year increase (+11,225) in initial claims, followed by Nevada (+8,925). The largest over-the-year decrease occurred in Maine (-2,119). ---------------------------------------------------------------------- | Note | | | | An individual can file an initial claim for unemployment compensa- | | tion during a week in which he/she is employed. The Mass Layoff | | Statistics program counts the claim and recognizes the onset of the | | spell of unemployment. In contrast, persons who worked at any point | | during the week that includes September 11 would have been classi- | | fied as employed and not unemployed in the Current Population Survey.| | | | The monthly data in this release cover mass layoffs of 50 or more | | workers beginning in a given month, regardless of the duration of | | the layoffs. Data on "extended mass layoffs," reflecting the addi- | | tional requirement that a layoff last for more than 30 days, are | | reported to BLS and published quarterly. Approximately 30 days | | after a mass layoff is triggered at an establishment, the employer | | is contacted for additional information. See the Technical Note | | for more detailed definitions. | | | | A new code for reason for the layoff, "Non-natural disaster," | | has been established in the extended mass layoff reporting that | | allows for identification of workers separated from companies as a | | direct or indirect effect of situations such as the September 11 | | attacks. BLS will expand its reporting of extended mass layoffs to | | include interim reports on layoff events. The first such report on | | layoff events identified through October 12 will be issued in late | | November. This interim reporting will provide a more timely and | | complete picture of extended layoff events associated with the | | September 11 attacks. | ---------------------------------------------------------------------- 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, July 1999 to September 2001 Extended mass layoffs lasting more than 30 days Date Total mass layoffs Realization rates(1) Initial Initial Initial Events claimants Events claimants Events claimants 1999 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 51.0 October ................... 1,098 118,938 November .................. 1,336 139,508 December .................. 1,509 162,381 Fourth Quarter ............ 3,943 420,827 1,625 287,685 41.2 68.4 2000 January ................... 1,934 223,322 February .................. 1,045 103,898 March ..................... 986 106,748 First Quarter ............. 3,965 433,968 1,330 221,368 33.5 51.0 April ..................... 924 101,359 May ....................... 984 92,193 June ...................... 1,597 192,025 Second Quarter ............ 3,505 385,577 1,271 231,471 36.3 60.0 July ...................... 1,333 164,978 August .................... 751 97,215 September ................. 936 106,842 Third Quarter ............. 3,020 369,035 1,014 188,641 33.6 51.1 October ................... 874 103,755 November .................. 1,697 216,514 December .................. 2,677 326,743 Fourth Quarter ............ 5,248 647,012 2,005 376,024 38.2 58.1 2001 January ................... 1,522 200,343 February .................. 1,501 172,908 March ..................... 1,527 171,466 First Quarter ............. 4,550 544,717 1,768 335,877 38.9 61.7 April ..................... 1,450 175,911 May ....................... 1,426 157,759 June ...................... 2,081 250,359 Second Quarter ............ 4,957 584,029 (2)(p)1,911 (2)(p)268,809 (p)38.6 (p)46.0 July ...................... 2,108 272,308 August(p) ................. 1,474 163,263 September(p) .............. 1,316 158,859 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. The initial claimant realization rate is the percentage of total mass-layoff initial claimants associated with layoffs lasting more than 30 days. 2 These quarterly numbers are provisional and will increase as more data on these layoffs become available. Recent experience suggests that the number of extended mass layoff events is generally revised upwards by less than 10 percent and the number of initial claimants associated with such events increases by 25-40 percent. p = preliminary. Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance Initial claimants for Mass layoff events unemployment insurance Industry September July August September September July August September 2000 2001 2001(p) 2001(p) 2000 2001 2001(p) 2001(p) Total(1) ...................................... 936 2,108 1,474 1,316 106,842 272,308 163,263 158,859 Total, private ..................................... 885 2,034 1,444 1,281 101,134 264,922 160,685 154,697 Agriculture ...................................... 119 92 74 77 7,747 7,396 5,247 5,033 Nonagriculture ................................... 754 1,935 1,367 1,200 92,220 256,578 155,244 149,273 Manufacturing .................................. 313 1,144 607 485 46,605 167,427 79,663 58,953 Durable goods ................................ 178 802 415 315 33,403 126,136 59,811 39,270 Lumber and wood products ................... 18 28 11 6 1,354 3,375 882 499 Furniture and fixtures ..................... 10 41 30 24 1,439 5,962 4,102 2,496 Stone, clay, and glass products ............ 11 20 8 11 794 2,796 1,233 1,068 Primary metal industries ................... 20 85 35 28 2,082 13,746 3,448 2,820 Fabricated metal products .................. 12 137 42 38 844 16,156 3,402 3,181 Industrial machinery and equipment ......... 24 146 93 62 5,816 24,895 11,347 10,479 Electronic and other electrical equipment .. 17 130 119 77 1,470 20,502 16,820 7,159 Transportation equipment ................... 51 174 56 48 18,124 34,976 15,357 9,960 Instruments and related products ........... 8 21 15 14 836 2,210 2,529 989 Miscellaneous manufacturing industries ..... 7 20 6 7 644 1,518 691 619 Nondurable goods ............................. 135 342 192 170 13,202 41,291 19,852 19,683 Food and kindred products .................. 40 82 53 50 4,235 9,239 5,291 6,175 Tobacco products ........................... - - ( 2 ) - - - ( 2 ) - Textile mill products ...................... 18 50 29 35 2,294 7,323 3,315 5,216 Apparel and other textile products ......... 33 48 34 36 2,762 6,009 3,534 3,547 Paper and allied products .................. 19 20 16 8 1,899 2,436 2,876 727 Printing and publishing .................... 6 16 18 12 480 1,471 1,182 1,233 Chemicals and allied products .............. 4 17 11 10 265 2,071 910 684 Petroleum and coal products ................ - ( 2 ) - - - ( 2 ) - - Rubber and miscellaneous plastics products . 12 97 21 13 976 11,586 1,860 1,534 Leather and leather products ............... 3 ( 2 ) ( 2 ) 6 291 ( 2 ) ( 2 ) 567 Nonmanufacturing ............................... 441 791 760 715 45,615 89,151 75,581 90,320 Mining ....................................... - 8 7 ( 2 ) - 1,259 514 ( 2 ) Construction ................................. 54 64 75 67 3,584 5,022 6,058 4,657 Transportation and public utilities .......... 35 114 111 95 3,046 11,387 10,272 11,698 Wholesale and retail trade ................... 98 170 181 141 9,159 18,352 16,742 13,584 Wholesale trade ........................... 16 48 37 33 1,773 5,016 2,800 2,599 Retail trade .............................. 82 122 144 108 7,386 13,336 13,942 10,985 Finance, insurance, and real estate .......... 27 44 31 ( 2 ) 1,801 3,409 2,667 ( 2 ) Services ..................................... 227 391 355 385 28,025 49,722 39,328 58,110 Not identified ................................... 12 7 3 4 1,167 948 194 391 Government ......................................... 51 74 30 35 5,708 7,386 2,578 4,162 Federal .......................................... 22 18 5 9 2,983 2,020 480 901 State ............................................ 11 7 12 10 951 592 1,094 1,078 Local ............................................ 18 49 13 16 1,774 4,774 1,004 2,183 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 September July August September September July August September 2000 2001 2001(p) 2001(p) 2000 2001 2001(p) 2001(p) United States(1) ... 936 2,108 1,474 1,316 106,842 272,308 163,263 158,859 Northeast .................. 106 319 224 220 13,642 33,490 24,891 23,678 New England ............ 17 70 34 30 5,979 8,574 3,180 2,785 Middle Atlantic ........ 89 249 190 190 7,663 24,916 21,711 20,893 South ...................... 158 453 302 298 17,457 54,895 30,929 30,703 South Atlantic ......... 67 236 149 170 6,375 28,391 14,245 17,272 East South Central ..... 39 89 52 54 4,655 10,772 5,444 5,591 West South Central ..... 52 128 101 74 6,427 15,732 11,240 7,840 Midwest .................... 179 763 315 221 25,529 116,117 44,617 31,437 East North Central ..... 140 618 245 182 18,454 96,509 35,511 26,358 West North Central ..... 39 145 70 39 7,075 19,608 9,106 5,079 West ....................... 493 573 633 577 50,214 67,806 62,826 73,041 Mountain ............... 31 74 53 61 2,727 8,156 4,883 13,245 Pacific ................ 462 499 580 516 47,487 59,650 57,943 59,796 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 September July August September September July August September 2000 2001 2001(p) 2001(p) 2000 2001 2001(p) 2001(p) Total(1) ................ 936 2,108 1,474 1,316 106,842 272,308 163,263 158,859 Alabama .................... 8 13 10 12 596 1,312 678 1,067 Alaska ..................... 3 - ( 2 ) ( 2 ) 282 - ( 2 ) ( 2 ) Arizona .................... 3 22 10 7 240 2,149 655 506 Arkansas ................... 5 13 6 8 548 1,043 854 807 California ................. 430 444 519 465 43,042 51,198 50,343 54,267 Colorado ................... ( 2 ) 12 5 8 ( 2 ) 1,248 492 787 Connecticut ................ - 3 3 ( 2 ) - 209 308 ( 2 ) Delaware ................... - 6 ( 2 ) ( 2 ) - 1,021 ( 2 ) ( 2 ) District of Columbia ....... ( 2 ) - - 5 ( 2 ) - - 704 Florida .................... 20 80 71 75 1,662 6,692 5,822 5,575 Georgia .................... 7 15 16 14 550 1,413 1,368 1,505 Hawaii ..................... ( 2 ) ( 2 ) ( 2 ) 16 ( 2 ) ( 2 ) ( 2 ) 2,108 Idaho ...................... ( 2 ) 12 8 6 ( 2 ) 2,104 804 763 Illinois ................... 39 68 56 60 5,592 16,031 6,441 9,708 Indiana .................... 10 83 24 20 1,411 12,304 3,291 3,241 Iowa ....................... 8 49 15 13 1,254 8,154 1,373 2,041 Kansas ..................... 3 9 11 4 197 883 1,104 706 Kentucky ................... 17 52 24 26 2,988 7,227 3,422 3,033 Louisiana .................. ( 2 ) 6 3 ( 2 ) ( 2 ) 610 220 ( 2 ) Maine ...................... 4 5 3 - 2,119 586 211 - Maryland ................... 3 7 ( 2 ) 3 263 691 ( 2 ) 175 Massachusetts .............. 9 44 15 21 3,229 5,051 1,246 1,910 Michigan ................... 28 231 57 43 3,804 28,650 12,914 6,062 Minnesota .................. 7 24 11 6 1,909 2,792 1,421 507 Mississippi ................ 8 12 3 5 643 1,171 182 335 Missouri ................... 20 57 27 15 3,659 6,939 4,474 1,672 Montana .................... - - ( 2 ) ( 2 ) - - ( 2 ) ( 2 ) Nebraska ................... - 4 ( 2 ) - - 434 ( 2 ) - Nevada ..................... 20 20 23 34 1,837 2,095 1,958 10,762 New Hampshire .............. ( 2 ) 11 7 3 ( 2 ) 1,846 840 182 New Jersey ................. 10 43 30 23 931 4,963 3,108 2,348 New Mexico ................. ( 2 ) 5 ( 2 ) ( 2 ) ( 2 ) 252 ( 2 ) ( 2 ) New York ................... 12 39 53 77 918 4,071 6,178 9,427 North Carolina ............. 8 28 22 10 833 3,705 1,732 805 North Dakota ............... - ( 2 ) 3 ( 2 ) - ( 2 ) 430 ( 2 ) Ohio ....................... 33 127 50 30 4,669 23,143 6,153 3,983 Oklahoma ................... ( 2 ) 14 3 6 ( 2 ) 1,720 211 1,479 Oregon ..................... 19 33 33 14 3,209 6,336 4,986 1,291 Pennsylvania ............... 67 167 107 90 5,814 15,882 12,425 9,118 Rhode Island ............... ( 2 ) 4 5 ( 2 ) ( 2 ) 338 525 ( 2 ) South Carolina ............. 16 63 26 45 1,712 9,790 3,583 5,904 South Dakota ............... ( 2 ) - ( 2 ) - ( 2 ) - ( 2 ) - Tennessee .................. 6 12 15 11 428 1,062 1,162 1,156 Texas ...................... 44 95 89 58 5,529 12,359 9,955 5,417 Utah ....................... ( 2 ) 3 4 ( 2 ) ( 2 ) 308 242 ( 2 ) Vermont .................... ( 2 ) 3 ( 2 ) 3 ( 2 ) 544 ( 2 ) 487 Virginia ................... 12 35 10 14 1,182 4,971 1,372 2,282 Washington ................. 9 20 25 19 865 1,928 2,337 1,986 West Virginia .............. - ( 2 ) - 3 - ( 2 ) - 209 Wisconsin .................. 30 109 58 29 2,978 16,381 6,712 3,364 Wyoming .................... - - - - - - - - Puerto Rico ................ 11 8 9 9 863 896 862 831 1 See footnote 1, table 2. 2 Data do not meet BLS or state agency disclosure standards. p = preliminary. NOTE: Dash represents zero.