Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 98-65 For release: 10:00A.M. EST Media contact: 606-5902 Friday, February 20, 1998 MASS LAYOFFS IN DECEMBER 1997 In December 1997, there were 1,608 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month, according to preliminary 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 170,110 workers were involved. (Preliminary figures may not include all states.) Both the number of layoff events and initial claimants for unemployment insurance were lower than in December 1996. (See table 1.) 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. 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, 3,412 layoff events involving 394,804 initial claimants for unemployment insurance occurred in July, August, and September of 1997 combined. The third-quarter 1997 figures for mass layoffs lasting more than 30 days, however, were 978 events and 138,545 claimants. Twenty-nine percent of all mass layoffs in the July-September period lasted for more than a month. (See table 1.) In all quarters for which data are available, the proportion of "extended" mass layoffs to all mass layoffs varied from about 29 to 47 percent. Industry Distribution In December 1997, manufacturing industries accounted for 36 percent of all mass layoff events and 40 percent of all initial claims filed. (See table 3.) Manufacturing industries that had the largest numbers of initial claimants were: Food and kindred products 9,386 Apparel and other textile products 6,852 Transportation equipment 6,177 Textile mill products 6,161 - 2 - Within private-sector nonmanufacturing industries (including agriculture), services accounted for 26 percent of the layoff events and 32 percent of the initial claims (primarily in help supply services and motion picture and video production). Construction (mostly in highway and street construction) contributed an additional 29 percent to layoff events and 22 percent to initial claims. Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were: Heavy construction, except building 13,503 Business services 9,889 Local and suburban passenger transit 8,957 Eating and drinking places 8,574 Motion pictures 7,785 Compared with December 1996, the largest increase in initial claims occurred in motion pictures (3,757). The largest declines in initial claims during the same period occurred in transportation equipment (-5,848) and electronic equipment (-4,922). State Distribution Among the 49 states and the District of Columbia reporting preliminary data for December, California had the largest number of initial claims filed in mass layoff events (34,626), followed by Illinois (12,293), Virginia (10,713), Wisconsin (10,477), Pennsylvania (9,608), and Michigan (9,400). These six states accounted for 51 percent of the total number of layoff events and initial claims reported. (At the time these figures were compiled, information for Arkansas was not available.) California alone accounted for 22 percent of the layoff events and 20 percent of the initial claims. (See table 2.) From December 1996 to December 1997, Iowa reported the largest over-the- year rise in initial claims (3,632). Michigan had the sharpest over-the- year decline in initial claims (-11,132), 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 December 1997 Extended mass layoffs Event Date Total mass layoffs lasting more than 30 days realization rate(1) Events Initial Events Initial claimants claimants 1996 July................... 1,534 192,155 August................. 918 83,166 September.............. 513 42,376 Third quarter...... 2,965 317,697 1,018 195,007 34.3 October................ 1,289 131,850 November............... 1,433 130,774 December............... 1,824 204,123 Fourth quarter..... 4,546 466,747 1,908 366,052 42.0 1997 January................ 2,119 211,303 February............... 752 63,036 March.................. 770 83,048 First quarter...... 3,641 357,387 1,252 219,170 34.4 April.................. 1,266 151,958 May.................... 1,141 100,492 June................... 1,230 120,304 Second quarter..... 3,637 372,754 (2)1,539 (2)282,535 42.3 July................... 1,891 236,415 August................. 977 100,019 September(3)........... 544 58,370 Third quarter(p)... 3,412 394,804 (4)978 (4)138,545 28.7 October(3)............. (r)1,391 (r)137,026 November(3)............ (r)1,143 (r)97,509 December(3)............ (p)1,608 (p)170,110 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. 2 Data exclude Iowa. 3 Data exclude Arkansas. 4 Data exclude Arkansas, Iowa, Michigan,and Tennessee. p = preliminary. r = revised. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, December 1996 and December 1997 Mass layoff events Initial claimants for unemployment insurance State December December December December 1996 1997 1996 1997 Total( 1 )....................... (r)1,824 1,608 (r)204,123 170,110 Alabama ............................ 4 3 499 197 Alaska ............................. 4 3 359 258 Arizona ............................ 10 7 922 579 Arkansas ........................... 22 ( 1 ) 2,940 ( 1 ) California ......................... 370 354 33,483 34,626 Colorado ........................... 20 19 1,956 1,896 Connecticut ........................ 7 11 968 953 Delaware ........................... 4 3 223 171 District of Columbia ............... 3 ( 2 ) 194 ( 2 ) Florida ............................ 47 39 3,381 2,431 Georgia ............................ 9 17 631 1,545 Hawaii ............................. 6 8 398 576 Idaho .............................. 16 20 1,826 2,525 Illinois ........................... 116 94 18,567 12,293 Indiana ............................ 33 43 3,872 5,138 Iowa ............................... 6 27 413 4,045 Kansas ............................. 18 18 1,436 1,350 Kentucky ........................... 8 13 2,345 2,598 Louisiana .......................... (r)25 14 (r)2,017 891 Maine .............................. 12 11 1,099 913 Maryland ........................... 26 21 3,315 2,067 Massachusetts ...................... 46 48 5,636 5,319 Michigan ........................... 157 91 20,532 9,400 Minnesota .......................... 41 39 3,555 4,755 Mississippi ........................ 5 3 284 246 Missouri ........................... 43 56 5,683 7,010 Montana ............................ 3 4 231 217 Nebraska ........................... - - - - Nevada ............................. 23 20 2,400 2,188 New Hampshire ...................... 4 7 396 521 New Jersey ......................... 75 59 10,522 6,539 New Mexico ......................... 5 3 286 251 New York ........................... (r)62 23 (r)6,093 2,043 North Carolina ..................... 12 12 1,119 866 North Dakota ....................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Ohio ............................... 67 67 6,001 6,704 Oklahoma ........................... 4 14 227 1,902 Oregon ............................. 39 36 3,719 3,692 Pennsylvania ....................... 119 117 8,681 9,608 Rhode Island ....................... 8 11 1,089 1,107 South Carolina ..................... 79 15 12,405 1,539 South Dakota ....................... - - - - Tennessee .......................... 7 10 455 893 Texas .............................. 42 49 7,578 5,749 Utah ............................... 12 9 1,112 1,021 Vermont ........................... - - - - Virginia ........................... 68 57 12,034 10,713 Washington ......................... 8 24 679 2,021 West Virginia ...................... 5 3 326 175 Wisconsin .......................... 122 104 12,074 10,477 Wyoming ............................ - - - - Puerto Rico ........................ 6 14 488 1,252 1 For December 1997, data were reported by the District of Columbia and all states, except Arkansas. 2 Data do not meet BLS or state agency disclosure standard. r = revised. NOTE: Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, December 1996 and December 1997 Mass layoff events Initial claimants for unemployment insurance Industry December December December December 1996 1997 1996 1997 Total( 1 )....................................... 1,824 1,608 204,123 170,110 Total, private......................................... 1,779 1,560 200,824 166,181 Agriculture.......................................... 95 86 6,508 6,391 Nonagriculture....................................... 1,603 1,379 185,162 150,067 Manufacturing...................................... 751 572 96,763 68,657 Durable Goods................................... 382 279 55,613 36,790 Lumber and wood products..................... 56 52 5,581 5,651 Furniture and fixtures....................... 23 15 3,134 2,652 Stone, clay, and glass products.............. 36 32 4,246 3,272 Primary metal industries..................... 30 16 3,727 2,055 Fabricated metal products.................... 48 34 5,400 3,951 Industrial machinery and equipment........... 40 25 6,237 4,239 Electronic and other electrical equipment.... 55 36 10,719 5,797 Transportation equipment..................... 59 50 12,025 6,177 Instruments and related products............. 8 5 912 386 Miscellaneous manufacturing industries....... 27 14 3,632 2,610 Nondurable goods................................ 369 293 41,150 31,867 Food and kindred products.................... 88 91 8,975 9,386 Tobacco products............................. ( 2 ) 3 ( 2 ) 166 Textile mill products........................ 57 39 10,073 6,161 Apparel and other textile products........... 110 72 10,983 6,852 Paper and allied products.................... 14 10 1,053 860 Printing and publishing...................... ( 2 ) 10 ( 2 ) 975 Chemicals and allied products................ ( 2 ) 4 ( 2 ) 245 Petroleum and coal products.................. 11 17 949 1,424 Rubber and miscellaneous plastics products... 55 35 5,647 3,710 Leather and leather products................. 16 12 1,691 2,088 Nonmanufacturing................................... 852 807 88,399 81,410 Mining........................................... 9 13 831 994 Construction..................................... 302 263 22,439 19,450 Transportation and public utilities.............. 109 99 15,835 11,691 Wholesale and retail trade....................... 181 178 21,833 20,053 Wholesale trade............................... 32 34 3,155 5,764 Retail trade.................................. 149 144 18,678 14,289 Finance, insurance, and real estate.............. 12 17 1,056 1,374 Services......................................... 239 237 26,405 27,848 Not identified....................................... 81 95 9,154 9,723 Government............................................. 45 48 3,299 3,929 Federal............................................ 10 13 615 1,301 State.............................................. 11 5 890 527 Local.............................................. 24 30 1,794 2,101 1 For December 1997, data were reported by the District of Columbia and all states, except Arkansas. 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 December 1996 due to the inclusion of new data for Louisiana and New York.