Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 99-141 For release: 10:00 A.M. EDT Media contact: 606-5902 Thursday, May 20, 1999 MASS LAYOFFS IN MARCH 1999 In March 1999, there were 799 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, and the number of workers involved totaled 84,719. Both the number of layoff events and the number of initial claimants for unemployment insurance were somewhat higher in March 1999 than in March 1998. (See table 1.) The monthly series in this release covers 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 estab- lishment 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 March 1999, manufacturing industries accounted for 36 percent of all mass layoff events and 35 percent of the initial claims filed. Manufacturing industries that had the highest numbers of initial claimants were food products (5,380), primarily in canned and frozen fruits and vegetables; industrial machinery and equipment (4,024), mostly in farm machinery and equipment; and transportation equipment (3,125), particularly in motor vehicles and car bodies. (See table 2.) In nonmanufacturing industries, services accounted for 19 percent of all mass layoff events and 23 percent of all initial claims filed. The layoffs were predominantly in business services (particularly in help supply services) and motion pictures (mostly in motion picture and video- tape production). Layoffs in the help supply and motion picture services industries are more likely than in most other industries to last less than 30 days. Retail trade accounted for 12 percent of layoff events and 15 percent of initial claimants during the month, concentrated primarily in general merchandise stores and in eating and drinking places. Agriculture accounted for 11 percent of layoff events and 7 percent of initial claimants during the month, largely in agricultural services. Compared with March 1998, the largest increases in initial claims occurred in business services (3,437) and general merchandise stores (3,059). The largest over-the-year decreases in initial claims occurred in motion pictures (-2,915) and apparel and other textile products (-1,599). - 2 - Geographic Distribution In March, the number of initial claims due to mass layoffs was higher in the West (38,113) than in any of the other regions; a year earlier, the West also had the largest number of initial claimants involved in mass layoffs. (See table 3.) The business services, agricultural services, and motion picture industries contributed to the layoffs in the West. The lowest number of mass layoff initial claims was reported in the Northeast region (11,481). The largest over-the-year increase in mass layoff-related initial claims (2,399) occurred in the Northeast, followed closely by the Midwest (2,391). Higher levels of initial claims this year were reported mainly in the Middle Atlantic and East North Central divisions, with more layoffs in general merchandise stores and transportation equipment manufacturing. Among the 50 states and the District of Columbia reporting data for March, California had the largest number of initial claims filed in mass layoff events (32,560), primarily in business services, followed by Illinois (5,705), Texas (5,615), and Pennsylvania (5,051). These four states accounted for about 56 percent of all layoff events and 58 percent of all initial claimants for unemployment insurance. (See table 4.) From March 1998 to March 1999, Illinois reported the largest over-the- year rise in initial claims (3,613), primarily in transportation equipment, followed by Kentucky (1,255). Missouri had the largest over-the-year decline in initial claims (-1,221), mostly in transportation equipment, followed by Oregon (-1,205). 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: 202-606-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, January 1997 to March 1999 Extended mass layoffs lasting more than 30 days Date Total mass layoffs Event realization rate(1) Initial Initial Events claimants Events claimants 1997 January .......................... 2,139 212,860 February ......................... 755 63,352 March ............................ 783 84,069 First Quarter .................... 3,677 360,281 1,317 253,221 35.8 April ............................ 1,269 152,168 May .............................. 1,152 101,476 June ............................. 1,238 121,256 Second Quarter ................... 3,659 374,900 1,574 318,417 43.0 July ............................. 1,899 237,410 August ........................... 973 99,513 September ........................ 548 59,062 Third Quarter .................... 3,420 395,985 1,077 216,844 31.5 October .......................... 1,414 139,297 November ......................... 1,156 100,051 December ......................... 1,634 172,029 Fourth Quarter ................... 4,204 411,377 1,677 314,387 39.9 1998 January .......................... 2,360 255,203 February ......................... 970 81,455 March ............................ 762 78,210 First Quarter .................... 4,092 414,868 1,310 244,639 32.0 April ............................ 1,253 132,476 May .............................. 1,180 107,952 June ............................. 1,208 183,590 Second Quarter ................... 3,641 424,018 1,559 401,469 42.8 July ............................. 2,221 286,097 August ........................... 617 53,665 September ........................ 637 79,629 Third Quarter .................... 3,475 419,391 1,230 252,421 35.4 October .......................... 1,553 160,830 November ......................... 1,276 137,402 December ......................... 1,605 190,146 Fourth Quarter ................... 4,434 488,378 1,660 237,483 37.4 1999 January .......................... 2,212 211,991 February ......................... (r)875 (r)80,018 March ............................ 799 84,719 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. r = revised. Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, March 1998 and March 1999 Initial claimants for Mass layoff events unemployment insurance Industry March March March March 1998 1999 1998 1999 Total(1) ............................................ 762 799 78,210 84,719 Total, private ........................................... 749 775 77,220 82,371 Agriculture ............................................ 74 85 5,878 6,133 Nonagriculture ......................................... 663 676 70,167 75,312 Manufacturing ........................................ 287 286 31,083 30,020 Durable goods ...................................... 139 144 14,592 17,059 Lumber and wood products ......................... 23 22 1,755 1,823 Furniture and fixtures ........................... 8 5 1,092 449 Stone, clay, and glass products .................. 13 9 994 800 Primary metal industries ......................... 9 16 1,009 1,527 Fabricated metal products ........................ 17 14 1,360 1,436 Industrial machinery and equipment ............... 18 28 1,987 4,024 Electronic and other electrical equipment ........ 26 23 2,689 2,659 Transportation equipment ......................... 15 16 2,884 3,125 Instruments and related products ................. 5 6 337 616 Miscellaneous manufacturing industries ........... 5 5 485 600 Nondurable goods ................................... 148 142 16,491 12,961 Food and kindred products ........................ 64 59 6,114 5,380 Tobacco products ................................. 5 3 777 792 Textile mill products ............................ 16 19 2,076 2,012 Apparel and other textile products ............... 26 33 4,298 2,699 Paper and allied products ........................ 5 6 402 624 Printing and publishing .......................... 12 8 809 626 Chemicals and allied products .................... ( 2 ) 3 ( 2 ) 212 Petroleum and coal products ...................... ( 2 ) - ( 2 ) - Rubber and miscellaneous plastics products ....... 13 8 924 452 Leather and leather products ..................... ( 2 ) 3 ( 2 ) 164 Nonmanufacturing ..................................... 376 390 39,084 45,292 Mining ............................................. 5 20 404 1,712 Construction ....................................... 72 66 4,873 5,227 Transportation and public utilities ................ 37 33 4,014 3,501 Wholesale and retail trade ......................... 104 111 10,655 14,340 Wholesale trade ................................. 15 18 1,034 1,241 Retail trade .................................... 89 93 9,621 13,099 Finance, insurance, and real estate ................ 11 11 719 659 Services ........................................... 147 149 18,419 19,853 Not identified ......................................... 12 14 1,175 926 Government ............................................... 13 24 990 2,348 Federal ................................................ 1 3 57 479 State .................................................. 3 12 227 1,083 Local .................................................. 9 9 706 786 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division, March 1998 and March 1999 Mass layoff events Initial claimants for unemployment insurance Census region and division March March March March 1998 1999 1998 1999 United States ............. 762 799 78,210 84,719 Northeast ....................... 106 103 9,082 11,481 New England .................. 19 18 1,385 1,766 Middle Atlantic .............. 87 85 7,697 9,715 South ........................... 140 171 16,578 16,865 South Atlantic................. 69 72 6,690 7,146 East South Central............. 31 27 2,427 2,855 West South Central............. 40 72 7,461 6,864 Midwest ......................... 146 154 15,869 18,260 East North Central............. 107 120 9,965 14,675 West North Central............. 39 34 5,904 3,585 West ............................ 370 371 36,681 38,113 Mountain....................... 15 31 1,355 2,499 Pacific........................ 355 340 35,326 35,614 NOTE: The States (including the District of Columbia) that comprise the various 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, March 1998 and March 1999 Initial claimants for Mass layoff events unemployment insurance State March March March March 1998 1999 1998 1999 Total(1) ...................................... 762 799 78,210 84,719 Alabama .......................................... 7 6 475 468 Alaska ........................................... ( 2 ) - ( 2 ) - Arizona .......................................... 3 7 499 487 Arkansas ......................................... ( 2 ) 3 ( 2 ) 182 California ....................................... 310 308 31,341 32,560 Colorado ......................................... ( 2 ) 4 ( 2 ) 324 Connecticut ...................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Delaware ......................................... - ( 2 ) - ( 2 ) District of Columbia ............................. - - - - Florida .......................................... 27 26 2,733 1,636 Georgia .......................................... 11 5 990 462 Hawaii ........................................... 5 5 402 483 Idaho ............................................ 4 8 199 714 Illinois ......................................... 20 30 2,092 5,705 Indiana .......................................... 12 10 1,028 1,100 Iowa ............................................. 10 7 1,604 894 Kansas ........................................... 5 ( 2 ) 333 ( 2 ) Kentucky ......................................... 5 9 382 1,637 Louisiana ........................................ 3 10 226 658 Maine ............................................ ( 2 ) 3 ( 2 ) 338 Maryland ......................................... - ( 2 ) - ( 2 ) Massachusetts .................................... 13 9 905 832 Michigan ......................................... 9 22 831 2,021 Minnesota ........................................ 7 4 718 339 Mississippi ...................................... 7 3 393 178 Missouri ......................................... 16 19 3,196 1,975 Montana .......................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nebraska ......................................... ( 2 ) - ( 2 ) - Nevada ........................................... ( 2 ) 8 ( 2 ) 735 New Hampshire .................................... - - - - New Jersey ....................................... 21 24 1,501 2,422 New Mexico ....................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) New York ......................................... 16 8 1,369 2,242 North Carolina ................................... 7 14 652 1,751 North Dakota ..................................... - - - - Ohio ............................................. 22 23 1,824 2,156 Oklahoma ......................................... 4 4 404 409 Oregon ........................................... 28 16 2,685 1,480 Pennsylvania ..................................... 50 53 4,827 5,051 Rhode Island ..................................... 3 3 272 194 South Carolina ................................... 9 14 1,059 1,757 South Dakota ..................................... - 3 - 322 Tennessee ........................................ 12 9 1,177 572 Texas ............................................ 32 55 6,766 5,615 Utah ............................................. ( 2 ) - ( 2 ) - Vermont .......................................... - ( 2 ) - ( 2 ) Virginia ......................................... 14 9 1,196 939 Washington ....................................... 11 11 832 1,091 West Virginia .................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Wisconsin ........................................ 44 35 4,190 3,693 Wyoming .......................................... - ( 2 ) - ( 2 ) Puerto Rico ...................................... 5 5 343 682 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. Dash represents zero.