Technical information: (202) 691-6392 USDL 06-226 http://www.bls.gov/mls/ For release: 10:00 A.M. EST Media contact: 691-5902 Thursday, February 9, 2006 EXTENDED MASS LAYOFFS IN THE FOURTH QUARTER OF 2005 AND ANNUAL AVERAGES FOR 2005 In the fourth quarter of 2005, there were 1,299 mass layoff events that resulted in the separation of 217,803 workers from their jobs for at least 31 days, according to preliminary figures released by the U.S. Department of Labor's Bureau of Labor Statistics. Both the total number of layoff events and the number of separations were sharply lower than during the October-December 2004 time period, with separations at their lowest level for any fourth quarter since data collection began in 1995. (See table A.) The declines over the year were most notable in food manufacturing, general merchandise stores, and electrical equipment and appliance manufacturing. Seventy percent of all employers reporting an extended layoff in the fourth quarter of 2005 indicated that they would recall some number of workers, the highest proportion for any fourth quarter. Extended mass layoffs that involve the movement of work within the same company or to a different company, either domestically or outside the U.S., occurred in 9 percent of the nonseasonal layoff events, accounting for 10 percent of worker separations related to nonseasonal events. (See table B.) The completion of seasonal work accounted for 56 percent of all events and resulted in 123,288 separations during the period--the highest share of private nonfarm seasonal separations for any fourth quarter. Layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) represented 12 percent of events and resulted in 28,731 separations, the lowest level of separations for any fourth quarter since the program began in 1995. Permanent closure of work- sites occurred in 9 percent of all events and affected 20,352 workers, the fewest number of separations due to permanent closures for any fourth quarter. In the fourth quarter of 2005, the national unemployment rate was 4.7 per- cent, not seasonally adjusted; a year earlier it was 5.1 percent. Private non- farm payroll employment, not seasonally adjusted, increased by 1.6 percent or about 1.75 million jobs from October-December 2004 to October-December 2005. For all of 2005, the total number of extended mass layoff events was 4,780 and the total number of worker separations was 851,997. These annual totals were lower than in 2004, when there were 5,010 events and 993,909 separations. Since reaching a peak in 2001, the annual number of extended layoff events has fallen by 2,595, or 35 percent, and the number of separations has declined by 672,835, or 44 percent. Additional information on the annual data is avail- able starting on page 8 of this release. - 2 - Table A. Selected measures of extended mass layoff activity --------------------------------------------------------------------------- Period | Layoff events| Separations | Initial claimants -------------------------|--------------|--------------|------------------- 2001 | | | January-March............| 1,546 | 304,171 | 306,535 April-June...............| 1,828 | 430,499 | 358,611 July-September...........| 1,629 | 330,391 | 336,298 October-December.........| 2,372 | 459,771 | 456,068 2002 | | | January-March............| 1,611 | 299,266 | 292,998 April-June...............| 1,624 | 344,606 | 299,598 July-September...........| 1,186 | 255,152 | 254,955 October-December.........| 1,916 | 373,307 | 370,592 2003 | | | January-March............| 1,502 | 286,947 | 297,608 April-June...............| 1,799 | 368,273 | 348,966 July-September...........| 1,190 | 236,333 | 227,909 October-December.........| 1,690 | 325,333 | 326,328 2004 | | | January-March............| 1,339 | 276,503 | 238,392 April-June...............| 1,358 | 278,831 | 254,063 July-September...........| 886 | 164,608 | 148,575 October-December.........| 1,427 | 273,967 | 262,049 2005 | | | January-March(r).........| 1,142 | 187,128 | 185,420 April-June(r)............| 1,203 | 245,790 | 212,364 July-September(r)........| 1,136 | 201,276 | 189,443 October-December(p)......| 1,299 | 217,803 | 178,896 --------------------------------------------------------------------------- r = revised. p = preliminary. Industry Distribution of Extended Layoffs Extended mass layoff separations occurred in 311 of the 1,105 detailed industries for which data are available for the fourth quarter of 2005. This is the fewest number of industries to have at least one extended mass layoff event in a fourth quarter. Manufacturing industries accounted for 28 percent of private nonfarm lay- off events and separations during October-December 2005. (See table 1.) The 61,766 worker separations in manufacturing were the fewest in that sector for any fourth quarter. In the fourth quarter of 2005, separations in manufactur- ing were concentrated in food manufacturing (16,274), followed by transporta- tion equipment manufacturing (12,850). The construction sector had 35 percent of the events and 28 percent of the separations, mostly among heavy and civil engineering construction and in specialty trade contractors. Layoffs in the administrative and waste services sector comprised 11 percent of events and separations, mostly in temporary help services and in professional employer organizations. Retail trade accounted for 5 percent of private nonfarm layoff events and 8 percent of separations, primarily in mail-order houses. Layoffs in accommodation and food services accounted for 4 percent of events and 6 percent of sepa- rations, and were primarily concentrated in hotels and motels, except casino hotels. Information technology-producing industries (communication equipment, com- munications services, computer hardware, and software and computer services) accounted for 3 percent of layoff events and 6,417 worker separations in the fourth quarter of 2005. (See table 6.) In the fourth quarter of 2004, these industries accounted for 4 percent of layoff events and 8,622 separa- tions. Layoffs in the information technology-producing industries in the fourth quarter of 2005 were most numerous in computer hardware with 3,450 separations, followed by software and computer services with 1,331 separa- tions. - 3 - Table B. Extended mass layoff events and separations, selected measures, fourth quarter 2005p ---------------------------------------------------------------------- | | Action | Layoff events | Separations | | ----------------------------------|-----------------|----------------- | | Total private nonfarm............| 1,299 | 217,803 | | Total, excluding seasonal | | and vacation events(1).......| 572 | 94,190 | | Total events with move- | | ment of work(2).............| 54 | 9,851 | | | | Movement-of-work actions....| 73 | (3) With separations reported..| 50 | 6,271 With separations unknown...| 23 | (3) ---------------------------------------------------------------------- 1 The questions on movement of work were not asked of employers when the reason for layoff was either seasonal work or vacation period. 2 A layoff event can involve more than one movement-of-work action. 3 Data not available. p = preliminary. Reasons for Extended Layoff Layoffs due to the completion of seasonal work accounted for 56 percent of the extended layoff events and resulted in 123,288 separations in the fourth quarter of 2005. (See table 2.) Seasonal layoffs were most numerous among workers in heavy and civil engineering construction (highway, street, and bridge construction) and in food manufacturing (fruit and vegetable can- ning). Contract completion accounted for 12 percent of events and resulted in 23,739 separations during the fourth quarter. These layoffs were primarily in administrative and support services, followed by specialty trade contrac- tors. Internal company restructuring (due to bankruptcy, business ownership change, financial difficulty, and reorganization) accounted for 12 percent of layoff events and resulted in 28,731 separations. These layoffs were mostly among workers in transportation equipment manufacturing, computer and electronic product manufacturing, and air transportation. Over half of both the internal company restructuring layoff events and separations were due to reorganization within the company. Movement of Work Between October and December of 2005, 54 extended mass layoff events involved the movement of work; this was about 9 percent of total extended mass layoff events, excluding those for seasonal and vacation reasons. (See table B.) These movements of work were to other U.S. locations or to locations outside of the U.S., and they occurred either within the same company or to other companies. The extended mass layoff events involving movement of work were associated with the separation of 9,851 workers, about 10 percent of all separations resulting from nonseasonal/nonvacation mass layoff events. A year earlier, there were 83 layoff events and 19,599 separations associated with the movement of work. (See table 10.) Among the 54 extended mass layoff events with reported relocation of work, just over half (54 percent) were permanent closures of worksites, which affected 5,453 workers. In comparison, for the 1,299 total layoff events reported for the fourth quarter of 2005, only 9 percent involved the permanent closure of worksites. Of the layoffs involving the movement of work, 70 percent of the events and 78 percent of the laid-off workers were from manufacturing industries during the fourth quarter of 2005. (See table 7.) Among all private non- farm extended layoffs, manufacturing accounted for 28 percent of the events and separations. - 4 - Table C. Movement-of-work actions by type of separation where the number of separations is known by employers, fourth quarter 2005p -------------------------------------------------------------------- | | Action | Layoff events (1) | Separations | | -------------------------------------------------------------------- | | With separations reported.| 50 | 6,271 | | By location | | | | Out of country..........| 19 | 2,047 Within company........| 14 | 1,355 Different company.....| 5 | 692 | | Domestic relocations....| 31 | 4,224 Within company........| 26 | 3,823 Different company.....| 5 | 401 | | By company | | | | Within company..........| 40 | 5,178 Domestic..............| 26 | 3,823 Out of country........| 14 | 1,355 | | Different company.......| 10 | 1,093 Domestic..............| 5 | 401 Out of country........| 5 | 692 -------------------------------------------------------------------- 1 Only actions for which separations associated with the movement of work were reported are shown. p = preliminary. Internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) accounted for 74 percent of lay- off events associated with work relocation and resulted in 7,601 separations during the fourth quarter. (See table 8.) Most of these were due to reorga- nization within the company. Only 12 percent of all layoff events in the total private nonfarm economy were because of internal company restructuring. Among the regions, both the Midwest and the South accounted for the larg- est proportions of workers in extended mass layoffs associated with the move- ment of work (29 percent each) in the fourth quarter of 2005, followed by the Northeast (24 percent) and the West (18 percent). As noted in table B, the 54 extended layoff events for the fourth quarter of 2005 discussed above involve 73 identifiable movement-of-work actions. An identifiable movement-of-work action occurs when the employer provides sufficient information on the new location of work and/or the number of workers affected by the movement. Some extended mass layoff events involve more than one relocation of work action. For example, an extended mass layoff event at an establishment may involve job loss due to movement of work to both another domestic location of the company and to a location out of the country. This would be counted as two movement-of-work actions. Of the 73 identifiable relocations, employers were able to provide information on the specific separations (6,271 workers) associated with the movement-of-work component of the layoff in 50 actions, or 68 percent of the total actions for the fourth quarter of 2005. Thus, a range of 6,271 (sepa- rations in movement-of-work actions where the employer was able to provide specific detail) to 9,851 (total separations in all layoff events that in- cluded movement of work) is established for job loss due to the movement of work in the fourth quarter. (See table 10.) - 5 - Table D. Summary of employer expectations of a recall from extended layoff, fourth quarter 2004-fourth quarter 2005 --------------------------------------------------------------- | Percentage of events Nature of the recall|----------------------------------------- | IV | I | II | III | IV | 2004 | 2005 | 2005 | 2005r | 2005p ---------------------|-------|-------|-------|--------|-------- | | | | | Anticipate a recall..| 64.2 | 51.5 | 61.8 | 39.5 | 69.7 | | | | | Timeframe | | | | | | | | | | Within 6 months......| 84.8 | 85.5 | 89.4 | 78.8 | 90.1 Within 3 months....| 33.1 | 53.4 | 59.5 | 57.9 | 36.5 | | | | | Size | | | | | | | | | | At least half........| 92.9 | 92.5 | 92.9 | 80.2 | 92.8 All workers........| 49.8 | 43.2 | 51.1 | 43.2 | 50.5 --------------------------------------------------------------- r = revised. p = preliminary. In the 50 actions where employers were able to provide more complete sepa- rations information, 80 percent of relocations (40 out of 50) occurred among establishments within the same company. (See table C.) In 65 percent of these 40 relocations, the work activities were reassigned to places elsewhere in the U.S. Thirty-eight percent of the movement-of-work relocations involved out-of- country moves (19 out of 50). The separation of 2,047 workers was associated with out-of-country relocations, about 2 percent of all nonseasonal/nonvaca- tion extended mass layoff separations. Domestic relocation of work--both with- in the company and to other companies--affected 4,224 workers. (See table 11.) Recall Expectations Seventy percent of employers reporting an extended layoff in the fourth quarter of 2005 indicated they anticipated some type of recall. This com- pares with 64 percent of the employers anticipating a recall a year earlier and is the highest such proportion for any fourth quarter. (See table D.) The fourth quarter typically has the highest recall expectations for any quarter of the year. Most employers not expecting a recall during the fourth quarter were from administrative and support services and transportation equipment manufacturing. Among establishments expecting a recall, most employers expected to recall over one-half of the separated employees and to do so within 6 months. Fifty percent of the employers expected to extend the offer to all laid-off workers. Excluding layoff events due to seasonal work and vacation period (in which 97 percent of the employers expected a recall), employers expected to recall laid-off workers in 35 percent of the events. A year earlier, 34 percent of employers expected a recall in nonseasonal and nonvacation events. In layoff events due to internal company restructuring, employers anticipated a recall in only 6 percent of the events. - 6 - Table E. Distribution of extended layoff events by size of layoff, October-December 2005p ------------------------------------------------------------------- | Layoff events | Separations Size |------------------------|------------------------ | Number | Percent | Number | Percent -----------------|-----------|------------|----------|------------- Total........| 1,299 | 100.0 | 217,803 | 100.0 | | | | 50-99............| 483 | 37.2 | 35,405 | 16.3 100-149..........| 324 | 24.9 | 37,558 | 17.2 150-199..........| 169 | 13.0 | 28,279 | 13.0 200-299..........| 173 | 13.3 | 39,534 | 18.2 300-499..........| 102 | 7.9 | 35,751 | 16.4 500-999..........| 39 | 3.0 | 25,421 | 11.7 1,000 or more....| 9 | .7 | 15,855 | 7.3 ------------------------------------------------------------------- p = preliminary. Size of Extended Layoff Layoff events during the fourth quarter continued to be concentrated at the lower end of the extended layoff-size spectrum, with 62 percent involving few- er than 150 workers. These events, however, accounted for only 33 percent of all separations. (See table E.) Separations involving 500 or more workers, while comprising 4 percent of the events, accounted for 19 percent of all separations, down from 27 percent in October-December 2004. The average size of layoffs (as measured by separations per layoff event) differed widely by industry, ranging from a low of 65 separations in electronics and appliance stores to a high of 677 in nonstore retailers. Initial Claimant Characteristics A total of 178,896 initial claimants for unemployment insurance were associated with extended mass layoffs in the fourth quarter of 2005. Of these claimants, 12 percent were black, 15 percent were Hispanic, 31 per- cent were women, 36 percent were 30 to 44 years of age, and 16 percent were 55 years of age or older. (See table 3.) Among persons in the civ- ilian labor force for the same period, 11 percent were black, 13 percent were Hispanic, 47 percent were women, 35 percent were age 30 to 44, and 17 percent were 55 years of age or older. Geographic Distribution In the fourth quarter, the number of separations due to extended mass layoff events was highest in the Midwest (106,095), followed by the South (39,487), the West (38,487), and the Northeast (33,734). (See table 4.) Extended mass layoffs in the Midwest were mainly in heavy and civil engi- neering construction and in specialty trade contractors. All four regions reported over-the-year decreases in separations, with the largest decrease occurring in the West (-29,298), followed by the Northeast (-14,727), the South (-7,541), and the Midwest (-4,598). Seven of the nine geographic divisions reported over-the-year declines in laid- off workers, with the largest declines occurring in the Pacific (-27,068) and Middle Atlantic (-12,752) divisions. The West South Central division reported the largest increase in separations (+1,140). - 7 - Table F. Mass layoff events and separations, selected metropolitan areas ------------------------------------------------------------------------------ | Events | Separations Metropolitan area |---------------|------------------ | IV | IV | IV | IV | 2004 | 2005p | 2004 | 2005p -------------------------------------------|-------|------ |---------|-------- Total, nonmetropolitan areas...............| 205 | 208 | 34,595 | 30,980 | | | | Total, 367 metropolitan areas..............| 804 | 746 | 141,366 |121,969 | | | | Chicago-Naperville-Joliet, Ill.-Ind.- | | | | Wis. .................................| 89 | 86 | 17,869 | 16,034 New York-Northern New Jersey-Long | | | | Island, N.Y.-N.J.-Pa. ................| 69 | 63 | 10,505 | 7,905 New Orleans-Metairie-Kenner, La. .......| 5 | 15 | 1,235 | 6,579 Detroit-Warren-Livonia, Mich. ..........| 36 | 45 | 5,060 | 6,000 Minneapolis-St. Paul-Bloomington, | | | | Minn.-Wis. ...........................| 33 | 40 | 4,794 | 5,824 Medford, Ore. ..........................| (1) | (1) | (1) | (1) Cleveland-Elyria-Mentor, Ohio ..........| 11 | 15 | 1,051 | 3,175 St. Louis, Mo.-Ill. ....................| 5 | 11 | 2,428 | 2,524 Columbus, Ohio .........................| 6 | 9 | 464 | 1,825 Louisville, Ky. ........................| 7 | 9 | 1,022 | 1,815 ------------------------------------------------------------------------------ 1 = Data do not meet BLS or state agency disclosure standards. p = preliminary. NOTE: The geographic boundaries of the metropolitan areas shown in this table are defined in Office of Management and Budget Bulletin 04-03, February 18, 2004. Among the 50 states and the District of Columbia, the largest number of worker separations occurred in Illinois (32,967), followed by Ohio (19,640), New York (14,268), and Michigan (14,107). These four states accounted for 37 percent of total layoff events and separations during the fourth quarter of 2005. They were followed by California (13,959), Florida (12,824), Minnesota (12,646), and Wisconsin (7,967). (See table 5.) After excluding the substantial impact of seasonal work, Illinois reported the most laid-off workers (12,510), largely due to layoffs in administrative and support services. Over the year, California reported the greatest decrease in workers laid off for all reasons during the fourth quarter (-26,923), followed by Wiscon- sin (-6,948) and Florida (-6,434). The largest increases occurred in Ohio (+8,900), Louisiana (+3,317), and Oregon (+1,492). Fifty-seven percent of events and 56 percent of separations (121,969) occurred in metropolitan areas in the fourth quarter of 2005, compared with 56 percent of events and 52 percent of separations (141,366) during the fourth quarter of 2004. Among the 367 metropolitan areas, Chicago- Naperville-Joliet, Ill.-Ind.-Wis., reported the highest number of separa- tions, 16,034, in the fourth quarter of 2005. Next were New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa., with 7,905 separations, and New Orleans-Metairie-Kenner, La., with 6,579 separations. (See table F.) Em- ployers located in nonmetropolitan areas separated 30,980 workers in mass layoffs, down from 34,595 workers in the fourth quarter of 2004. - 8 - Table G. Selected measures of mass layoff activity, 1996-2005 --------------------------------------------------------------------- Period | Layoff events | Separations | Initial claimants -----------------|---------------|---------------|------------------- 1996.............| 4,760 | 948,122 | 805,810 1997.............| 4,671 | 947,843 | 879,831 1998.............| 4,859 | 991,245 | 1,056,462 1999.............| 4,556 | 901,451 | 796,917 2000.............| 4,591 | 915,962 | 846,267 2001.............| 7,375 | 1,524,832 | 1,457,512 2002.............| 6,337 | 1,272,331 | 1,218,143 2003.............| 6,181 | 1,216,886 | 1,200,811 2004.............| 5,010 | 993,909 | 903,079 2005(p)..........| 4,780 | 851,997 | 766,123 --------------------------------------------------------------------- p = preliminary. Review of 2005 For all of 2005, employers reported 4,780 extended mass layoff actions, affecting 851,997 workers, down from 5,010 events and 993,909 separations in 2004. The total number of separations for 2005 was the lowest for any year since annual totals became available in 1996. Compared to their peak levels in 2001, the number of events was down by 35 percent and the number of separations was down by 44 percent. (See table G.) The annual average national unemployment rate decreased from 5.5 percent in 2004 to 5.1 percent in 2005, while private nonfarm payroll employment increased by 1.7 percent, or 1,847,000 jobs. Eleven percent of extended events in 2005 were permanent closures, accounting for 102,788 worker separations. When compared with 2004, the share of total extended mass layoff events that resulted in a permanent worksite closure fell by 4 percentage points, as did the respective share of the associated separations. Both the total number of permanent closures and the associated separations reached series lows in 2005. Since 2001, when permanent closures were at their highest, the number of closures has fallen by 56 percent and the number of associated separations has declined by 73 percent. During 2005, permanent closures were most numerous in the manufacturing sector, primarily in transportation equipment manufacturing and food production. Reorganization within the company was most often cited as the reason for closures in manufacturing during 2005, accounting for 38 percent of the total closures. In 2005, employers expected a recall in 56 percent of the mass layoff events, higher than in 2004 when employers expected a recall in 51 percent of events. Employers in mining, construction, and arts, entertainment, and recreation were more likely to have some type of recall than were those in other industries. Employers in the finance and insurance sector had the lowest percentage of recall expectation (8 percent), followed by those in the information sector (17 percent). Of the layoff events where employers did not expect to recall laid-off workers, 34 percent were in the manufacturing sector. These occurred pri- marily in transportation equipment and computer and electronic products. Industry. Manufacturing had the largest share of both extended events and separations in 2005--26 and 25 percent, respectively. However, these were the smallest shares on record for this industry group. Since reaching a peak in 2001, the number of manufacturing events has declined by 62 percent and the number of separations has declined by 66 percent. In 2005, within manufacturing, separations were most numerous in food manufacturing (48,944, largely in fruit and vegetable processing) and transportation equipment (41,474, mostly in automobile manufacturing). Compared with 2004, 17 of the 21 manufacturing subgroups had declines in the number of separations, with the largest occurring in food production (-15,106) and apparel manufacturing (-4,845). Wood products manufacturing had the largest increase (+2,708), followed by machinery (+2,568). - 9 - Reason. In 2005, seasonal work continued to be the most-cited reason for layoff, accounting for 37 percent of all layoff events and 40 percent of all separations. A year earlier, seasonal layoffs accounted for 33 percent of events and 34 percent of separations. The seasonal layoffs in 2005 oc- curred primarily in establishments engaged in heavy and civil engineering construction, amusements, gambling and recreation, and food manufacturing. Layoff activity due to internal company restructuring occurred largely among transportation equipment manufacturing, credit intermediation and related activities, air transportation, and food and beverage stores. Internal company restructuring occurred in 759 events (16 percent of the total), resulting in the separation of 145,352 workers (17 percent of the total). Movement of work. In 2005, there were 266 extended mass layoff events that involved work moving within the same company or to a different company, domestically or out of the U.S. The events involving movement of work were associated with the separation of 51,920 workers, about 10 percent of all separations resulting from nonseasonal/nonvacation mass layoff events. Fifty- four percent of events with movement of work involved the permanent closure of a worksite, affecting 26,991 workers. More than two-thirds of the events and separations were in manufacturing industries, mostly in transportation equipment manufacturing. Employers citing internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorgani- zation) accounted for over two-thirds of the movement-of-work events and sepa- rations. Among the regions, the Midwest accounted for the largest proportion of laid-off workers associated with the movement of work (31 percent), fol- lowed by the South (30 percent), the West (21 percent), and the Northeast (18 percent). As part of the 266 layoff events, 344 identifiable movement-of-work actions were taken by employers. Employers were able to provide information on specif- ic separations associated with the movement-of-work component of the layoff in 252 actions, which totaled 33,255 laid-off workers. Thus, the number of separations due to the movement of work ranged between 33,255 (separations in movement-of-work actions where the employer was able to provide specific de- tail) to 51,920 (total separations in all layoff events that included move- ment of work) for 2005. Of the 252 movement-of-work actions for which complete information is available, 6 in 10 relocations were to other locations within the U.S., and nearly 8 in 10 involved moving work within the company. The separation of 11,375 workers was associated with out-of-country relocations, which accounted for 34 percent of the separations related to the movement of work and 2 per- cent of all separations in nonseasonal/nonvacation extended mass layoff events. In out-of-country relocations, Mexico and China were cited 69 percent of the time as the destination to which work moved. Domestic relocation of work-- both within the company and to other companies--affected 21,186 workers. Geographic distribution. The Midwest reported more laid-off workers in 2005 than any other region, 294,762. Layoffs in the Midwest were mainly in heavy and civil engineering construction and administrative and support services and were primarily attributed to seasonal factors. The Northeast region continued to report the lowest annual number of separations (160,445). Compared with 2004, three of the four geographic regions reported a decrease in laid-off workers, with the largest decline in the West (-116,424). The South had the only over-the-year increase (+18,575). Among the 50 states and the District of Columbia, Illinois reported the largest number of separated workers in 2005 (101,106). After Illinois were California (80,361), New York (67,276), and Florida (65,860). These four states accounted for 34 percent of events and 37 percent of separations in 2005. California had the largest over-the-year decline in the number of separations (-126,426); Louisiana recorded the largest over-the-year increase (+47,288). Over 90 percent of the increase in Louisiana occurred in the third quarter and was related to the effects of Hurricanes Katrina and Rita. - 10 - Table H. Hurricanes Katrina-and Rita-related mass layoff activity in Louisiana and Mississippi, September-December 2005p --------------------------------------------------------- Measure | Total potential | Extended mass | mass layoffs | layoffs (1) -----------------|-----------------|--------------------- Events ..........| 964 | 358 Initial claims ..| 136,930 | 47,767 Separations .....| (2) | 56,310 --------------------------------------------------------- 1 = Includes private nonfarm establishments only. 2 = Separations are not available. p = preliminary. Fifty-nine percent of events and 53 percent of separations occurred in metro- politan areas in 2005, compared with 56 percent of events and 47 percent of separations in 2004. Among the 367 metropolitan areas, New Orleans-Metairie- Kenner, La., reported the highest number of separations, 48,542, with most re- lated to the hurricanes. Next were New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa., with 44,931 separations, and Chicago-Naperville-Joliet, Ill.- Ind.-Wis., with 41,946. Employers located in nonmetropolitan areas separated 105,330 workers in extended mass layoffs during 2005, down from 110,186 workers in 2004. Impact of Hurricanes Katrina and Rita. The impacts of Hurricanes Katrina and Rita were seen in the Mass Layoff Statistics (MLS) program through initial claims filings against establishments in the most severely affected states-- Louisiana and Mississippi. Total potential events in the period from August 28 through December 31 reached 964, with 136,930 initial claims filed. Private nonfarm extended mass layoffs directly or indirectly due to Hurricanes Katrina and Rita totaled 358 events and 56,310 separations in the period. (See table H.) The majority of the extended mass layoff activity (96 percent of the e- vents and 88 percent of the separations) occurred in September, and all of the events were from Louisiana and Mississippi employers. Accommodation and food service establishments reported the highest number of worker separations due to the hurricanes, followed by retail trade and healthcare and social assist- ance. Extended mass layoff events accounted for 37 percent of the mass layoff events potentially related to Hurricanes Katrina and Rita (358 of 964) in the 4 month period. It is important to note that the 964 potential events include 99 from government agencies which are not subject to the MLS em- ployer interview. Also, in response to the interview, many employers re- sponded that the layoff was temporary (less than 31 days) or did not occur at all. Note The quarterly series on extended mass layoffs cover layoffs of at least 31-days duration that involve 50 or more individuals from a single establish- ment filing initial claims for unemployment insurance during a consecutive 5-week period. Approximately 30 days after a mass layoff is triggered at an establishment, the employer is contacted for additional information. Data for the fourth quarter are preliminary and subject to revision. This release also includes revised data for previous quarters. Data are not seasonally adjusted, but survey data suggest that there is a seasonal pattern to layoffs. Thus, comparisons between consecutive quarters should not be used as an indi- cator of trend. For additional information about the program, see the Technical Note. ______________________________ The report on Mass Layoffs in January 2006 is scheduled to be released on Thursday, February 23, 2006. - 11 - Technical Note The Mass Layoff Statistics (MLS) program is a federal-state program which identifies, describes, and tracks the effects of major job cutbacks, using data from each state's unemployment insurance database. Establish- ments which have at least 50 initial claims filed against them during a consecutive 5-week period are contacted by the state agency to determine whether these separations are of at least 31 days duration, and, if so, information is obtained on the total number of persons separated and the reasons for these separations. Establishments are identified according to industry classification and location, and unemployment insurance claimants are identified by such demographic factors as age, race, gender, ethnic group, and place of residence. The program yields information on an individual's entire spell of unemployment, to the point when regular unemployment insurance benefits are exhausted. Definitions Establishment. A unit at a single physical location at which predomi- nantly one type of economic activity is conducted. Extended layoff event. Fifty or more initial claims for unemployment insurance benefits from an establishment during a 5-week period, with at least 50 workers separated for more than 30 days. 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. Layoff. The separation of persons from an employer as part of a mass layoff event. (See below.) Such layoffs involve both persons subject to recall and those who are terminated by the establishment. Mass layoff. Fifty or more initial claims for unemployment insurance benefits from an establishment beginning in a given month, regardless of duration. Worksite closure. The complete closure of either multi-unit or single- unit establishments or the partial closure of a multi-unit establishment where entire worksites affected by layoffs are closed or planned to be closed. - 12 - Movement of work concepts and questions Because of the employer interview component, the BLS decided to use the MLS program as a vehicle for collecting additional information on offshoring and outsourcing associated with job loss, by adding questions that address movement of work. The term "moving work" means that the company experiencing the layoff has reassigned work activities that were performed at a worksite by the company's employees (1) to another work- site within the company; (2) to another company under formal arrangements at the same worksite; or (3) to another company under formal arrangements at another worksite. The type of work activities subject to movement can include accounting, customer service, cleaning, warehousing, etc. "Overseas relocation" is the movement of work from within the U.S. to locations outside of the U.S. "Overseas relocation" can occur within the same company and involve movement of work to a different location of that company outside of the U.S., or to a different company altogether. "Domestic relocation" is the movement of work to other locations inside the U.S., either within the same company or to a different company. "Overseas relocation" and "domestic relocation" are no longer used in the same way as they were in earlier extended mass layoff news releases. There- fore, the data presented in this news release are not comparable to those that were presented in earlier news releases. Questions on movement of work and location are asked for all identified layoff events when the reason for separation is other than "seasonal work" or "vacation period." Seasonal and vacation layoff events were excluded because movement of work appears unlikely. Questions on movement of work are asked after the analyst verifies that a layoff in fact occurred and lasted more than 30 days, and obtained the total number of workers separated from jobs, the date the layoff began, and the economic reason for the layoff. If the reason for layoff is other than seasonal or vacation, the employer was asked the following: (1) "Did this layoff include your company moving work from this lo- cation(s) to a different geographic location(s) within your company?" (2) "Did this layoff include your company moving work that was performed in-house by your employees to a different company, through contractual ar- rangements?" A "yes" response to either question is followed by: "Is the location inside or outside of the U.S.?" and "How many of the layoffs were a result of this relocation?" Layoff actions are classified as "overseas relocation" if the employer responds "yes" to questions 1 and/or 2, and indicates that the location(s) was outside of the U.S. Domestic relocation is determined if the employer responds "yes" to questions 1 and/or 2 and indicates that the location(s) was within the U.S. After asking the movement of work questions, the employer interview continues and responses are obtained for questions on recall expectations and open/closed status of the worksite. - 13 - Reliability of the data The identification of establishments and layoff events in the MLS program and associated characteristics of claimants is based on admin- istrative data on covered establishments and unemployment insurance claims, and, therefore, is not subject to issues associated with sampling error. Nonsampling errors such as typographical errors may occur but are not likely to be significant. While the MLS establishments and layoff events are not subject to sampling error, and all such employers are asked the employer interview questions, the employer responses are subject to non- sampling error. Nonsampling error can occur for many reasons, including the inability to obtain information for all respondents, inability or unwillingness of respondents to provide correct information, and errors made in the collection or processing of the data. For the fourth quarter of 2005, outright refusal to participate in the employer interview accounted for 2.4 percent of all private nonfarm events. Although included in the total number of instances involving the movement of work, for the fourth quarter, employers in 23 relocations were unable to provide the number of separations specifically associated with the movement of work, 14 of which involved out-of-country moves. Other information Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone: 1-800-877-8339. Table 1. Industry distribution: Extended mass layoff events, separations, and initial claimants for unemployment insurance, private nonfarm sector, selected quarters, 2004 and 2005 Initial claimants for Layoff events Separations unemployment insurance Industry IV III IV IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p 2004 2005r 2005p Total, private nonfarm(1) .................. 1,427 1,136 1,299 273,967 201,276 217,803 262,049 189,443 178,896 Mining ....................................... 24 4 25 3,915 1,312 3,068 3,508 1,001 2,510 Utilities .................................... 6 ( 2 ) 3 2,153 ( 2 ) 519 1,730 ( 2 ) 454 Construction ................................. 418 90 452 61,066 10,507 60,935 67,029 14,721 53,907 Manufacturing ................................ 439 292 364 84,535 55,848 61,766 88,664 56,243 57,684 Food .................................... 109 50 83 26,473 10,214 16,274 23,241 8,786 13,833 Beverage and tobacco products ........... 8 ( 2 ) 5 2,455 ( 2 ) 784 1,158 ( 2 ) 568 Textile mills ........................... 6 12 13 771 1,805 1,392 1,832 2,480 1,643 Textile product mills ................... 3 6 ( 2 ) 350 619 ( 2 ) 385 851 ( 2 ) Apparel ................................. 16 13 8 3,940 1,459 2,075 2,700 1,616 924 Leather and allied products ............. 3 ( 2 ) ( 2 ) 584 ( 2 ) ( 2 ) 733 ( 2 ) ( 2 ) Wood products ........................... 10 11 15 1,358 2,828 1,740 2,036 2,822 1,535 Paper ................................... 12 9 8 1,423 1,174 1,143 1,212 984 805 Printing and related support activities . 4 7 7 611 662 1,027 805 589 612 Petroleum and coal products ............. 16 - 16 2,389 - 2,285 2,695 - 2,280 Chemicals .............................. 11 10 9 1,417 1,901 1,458 1,451 1,821 1,197 Plastics and rubber products ............ 20 7 23 2,087 770 2,445 2,440 721 2,397 Nonmetallic mineral products ............ 34 12 35 5,409 1,433 5,862 6,365 1,631 5,512 Primary metals .......................... 15 6 10 2,395 1,562 2,292 1,915 898 1,102 Fabricated metal products ............... 23 25 11 3,368 2,623 1,342 3,575 2,978 1,036 Machinery ............................... 17 26 7 2,528 6,079 1,112 3,084 6,335 1,108 Computer and electronic products ........ 27 21 20 4,791 4,259 3,729 4,144 3,126 2,666 Electrical equipment and appliances ..... 17 9 ( 2 ) 5,149 4,604 ( 2 ) 7,091 4,607 ( 2 ) Transportation equipment ................ 54 46 64 11,815 9,715 12,850 16,427 11,629 17,006 Furniture and related products .......... 23 9 15 3,540 2,235 1,872 3,501 2,266 1,798 Miscellaneous manufacturing ............. 11 10 6 1,682 1,437 769 1,874 1,605 758 Wholesale trade .............................. 17 36 21 4,019 4,561 2,674 2,519 4,030 2,828 Retail trade ................................. 53 112 61 21,377 20,902 16,885 14,926 19,512 8,747 Transportation and warehousing ............... 33 87 31 6,003 17,820 5,949 7,169 15,750 4,465 Information .................................. 46 26 18 8,416 3,425 3,397 9,144 3,265 2,957 Finance and insurance ........................ 31 25 15 6,045 5,029 2,276 5,341 5,178 1,938 Real estate and rental and leasing ........... 3 7 ( 2 ) 1,383 562 ( 2 ) 970 978 ( 2 ) Professional and technical services .......... 28 34 32 6,189 5,029 5,036 5,850 5,519 5,008 Management of companies and enterprises ...... 4 ( 2 ) 3 1,581 ( 2 ) 566 995 ( 2 ) 466 Administrative and waste services ............ 153 121 147 28,401 22,670 23,830 25,775 22,413 20,746 Educational services ......................... - 13 ( 2 ) - 2,390 ( 2 ) - 2,117 ( 2 ) Health care and social assistance ............ 31 94 19 7,467 11,064 4,497 5,049 9,377 2,549 Arts, entertainment, and recreation .......... 46 32 40 8,875 13,985 9,434 5,916 6,386 4,875 Accommodation and food services .............. 83 139 56 19,782 23,075 13,049 15,691 20,172 8,030 Other services, except public administration . 10 18 9 2,357 2,285 1,551 1,641 2,099 1,058 Unclassified ................................. 2 1 - 403 178 - 132 178 - 1 For the fourth quarter of 2005, data on layoffs were reported by employers in all states and the District of Columbia. Due to budget constraints in the MLS program, beginning with data for the first quarter of 2004, the scope of quarterly extended mass layoffs and plant closings has been redefined to cover only the private nonfarm economy. Quarterly information on layoff events in agriculture and government are no longer being collected. However, the monthly reporting of the MLS program in the release, Mass Layoffs, which is based only on administrative data, will be unaffected and will continue to cover the total economy. 2 Data do not meet BLS or state agency disclosure standards. r = revised. p = preliminary. NOTE: Dash represents zero. Table 2. Reason for layoff: Extended mass layoff events, separations, and initial claimants for unemployment insurance, private nonfarm sector, selected quarters, 2004 and 2005 Initial claimants for Layoff events Separations unemployment insurance Reason for layoff IV III IV IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p 2004 2005r 2005p Total, private nonfarm(1) ..... 1,427 1,136 1,299 273,967 201,276 217,803 262,049 189,443 178,896 Automation ....................... ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - Bankruptcy ....................... 25 16 24 3,965 5,864 4,636 2,697 4,570 3,356 Business ownership change ........ 28 29 14 4,743 5,298 2,282 3,811 4,628 1,685 Contract cancellation ............ 23 19 16 4,164 3,309 2,452 2,977 2,869 1,393 Contract completed ............... 187 165 151 36,520 25,849 23,739 38,110 31,161 23,170 Energy-related ................... - ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) ( 2 ) Environment-related .............. ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) Financial difficulty ............. 48 32 29 10,373 6,200 5,752 7,540 5,667 3,751 Import competition ............... 13 14 16 1,709 3,568 2,712 1,661 3,320 2,337 Labor dispute .................... 13 11 ( 2 ) 5,824 6,365 ( 2 ) 4,814 5,200 ( 2 ) Material shortage ................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) Model changeover ................. - 3 3 - 1,655 767 - 2,250 360 Natural disaster ................. - ( 2 ) - - ( 2 ) - - ( 2 ) - Non-natural disaster ............. ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - Plant or machine repair .......... 5 3 ( 2 ) 600 280 ( 2 ) 588 310 ( 2 ) Product line discontinued ........ 6 10 13 1,496 1,493 2,007 1,388 1,430 1,282 Reorganization within company .... 116 104 94 23,945 20,616 16,061 22,349 19,958 14,594 Seasonal work .................... 667 174 725 129,859 36,992 123,288 111,692 26,964 91,237 Slack work ....................... 166 117 125 22,196 16,426 15,790 38,246 20,618 21,885 Vacation period .................. - 9 ( 2 ) - 662 ( 2 ) - 627 ( 2 ) Weather-related .................. 32 344 24 4,217 49,832 7,528 3,785 45,473 3,569 Other ............................ 38 26 16 8,491 4,949 2,183 7,069 2,793 1,790 Not reported ..................... 55 54 40 14,780 10,757 7,051 14,611 10,686 7,051 1 See footnote 1, table 1. 2 Data do not meet BLS or state agency disclosure standards. r = revised. p = preliminary. NOTE: Dash represents zero. Table 3. State and selected claimant characteristics: Extended mass layoff events and initial claimants for unemployment insurance, private nonfarm sector, third and fourth quarters, 2005 Total Percent of total initial Hispanic Persons age 55 Layoff events claimants Black origin Women and over State III IV III IV III IV III IV III IV III IV 2005r 2005p 2005r 2005p 2005r 2005p 2005r 2005p 2005r 2005p 2005r 2005p Total, private nonfarm(1) .. 1,136 1,299 189,443 178,896 26.4 11.6 10.6 14.6 47.3 30.7 16.6 16.3 Alabama ........................ 3 6 384 622 61.5 35.4 2.3 2.1 43.8 29.7 25.8 20.9 Alaska ......................... 3 8 756 1,282 2.0 4.1 22.8 23.5 29.9 25.2 18.4 12.5 Arizona ........................ 3 ( 2 ) 787 ( 2 ) 1.4 7.1 53.1 25.0 20.6 30.4 27.3 16.1 Arkansas ....................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) 64.2 21.6 - - 88.7 72.2 24.5 20.6 California ..................... 87 79 13,199 10,461 10.3 6.7 31.1 45.6 50.5 50.8 18.7 17.4 Colorado ....................... 5 18 705 2,169 3.7 1.8 14.2 37.2 32.6 18.9 24.5 17.9 Connecticut .................... 9 8 980 904 11.7 10.3 11.8 7.4 59.2 27.0 21.1 15.6 Delaware ....................... - - - - - - - - - - - - District of Columbia ........... ( 2 ) - ( 2 ) - 28.6 - 26.4 - 48.4 - 20.9 - Florida ........................ 78 74 14,659 10,476 15.7 15.3 30.6 30.6 48.7 46.2 17.5 18.2 Georgia ........................ 13 15 2,224 1,780 48.6 68.2 .4 .5 60.8 58.6 15.6 15.6 Hawaii ......................... 3 3 359 300 2.5 1.0 13.6 22.0 40.4 5.3 18.9 8.7 Idaho .......................... 7 18 1,143 2,362 .5 .1 28.6 22.9 59.4 39.9 23.9 18.9 Illinois ....................... 75 164 15,346 21,335 24.5 14.9 11.5 21.9 40.2 24.5 14.9 12.7 Indiana ........................ 10 42 3,669 5,263 10.1 10.2 1.3 4.0 31.9 20.9 15.4 10.8 Iowa ........................... 3 34 1,713 4,317 1.5 1.9 .6 5.4 39.8 13.4 10.7 19.0 Kansas ......................... 5 4 500 630 8.6 3.8 5.4 8.6 28.6 13.2 12.0 16.8 Kentucky ....................... 15 24 1,616 2,324 13.4 8.8 .2 .1 47.8 28.0 16.0 16.4 Louisiana ...................... 331 18 41,600 2,751 58.7 64.2 4.3 3.9 59.1 63.9 10.9 4.8 Maine .......................... 3 4 315 647 1.6 .3 - .2 73.0 18.9 18.4 19.2 Maryland ....................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) 29.6 7.7 .3 - 32.6 6.2 22.0 10.8 Massachusetts .................. 19 16 2,893 2,154 8.3 5.5 2.3 7.9 50.9 31.0 20.9 24.3 Michigan ....................... 38 107 8,339 17,405 13.7 13.0 2.6 7.5 37.7 26.9 14.7 13.1 Minnesota ...................... 19 84 4,752 10,336 3.4 2.0 1.9 11.6 21.5 18.0 17.2 16.5 Mississippi .................... 45 ( 2 ) 8,941 ( 2 ) 43.7 29.0 10.3 3.8 56.3 58.0 15.1 13.7 Missouri ....................... 12 27 1,419 5,926 38.0 9.1 1.0 .4 62.0 32.8 23.5 23.3 Montana ........................ ( 2 ) 11 ( 2 ) 969 .4 .3 1.8 3.5 14.7 12.3 26.7 17.9 Nebraska ....................... ( 2 ) 11 ( 2 ) 964 1.7 4.9 25.6 16.8 22.3 19.4 9.1 19.9 Nevada ......................... ( 2 ) 5 ( 2 ) 433 5.3 12.7 16.2 17.6 28.7 47.8 28.7 25.9 New Hampshire .................. 3 5 281 936 1.1 1.5 6.4 25.0 54.8 23.4 24.6 15.6 New Jersey ..................... 34 32 5,173 3,741 21.8 14.2 10.9 15.0 49.1 35.7 28.7 26.5 New Mexico ..................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) 5.0 - 15.0 90.8 26.7 40.6 11.7 20.8 New York ....................... 94 99 15,757 13,534 14.5 7.6 11.5 6.8 44.7 22.4 18.8 17.1 North Carolina ................. 20 21 6,363 2,308 31.8 35.8 3.6 5.4 49.0 47.6 20.1 24.1 North Dakota ................... - 6 - 744 - .1 - 3.1 - 7.0 - 16.9 Ohio ........................... 38 105 7,238 13,666 12.2 9.4 1.6 2.9 39.3 20.4 15.3 13.0 Oklahoma ....................... ( 2 ) 3 ( 2 ) 590 18.1 6.9 4.0 15.9 30.7 43.9 11.6 31.7 Oregon ......................... 6 10 994 2,659 .5 .8 30.3 36.3 54.8 55.9 22.5 18.9 Pennsylvania ................... 65 64 12,191 11,077 6.0 9.0 2.0 2.8 37.5 42.0 20.8 20.9 Rhode Island ................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) 1.7 1.4 6.7 8.6 95.0 14.1 25.0 13.6 South Carolina ................. 10 10 1,779 1,855 54.5 53.4 .3 .2 61.6 53.1 5.1 11.2 South Dakota ................... - ( 2 ) - ( 2 ) - 1.8 - .9 - 5.5 - 20.0 Tennessee ...................... 12 11 2,650 1,243 13.0 25.5 - - 50.6 35.8 31.3 28.1 Texas .......................... 21 22 3,321 3,722 17.0 19.8 39.3 32.1 35.4 33.8 16.7 14.9 Utah ........................... ( 2 ) 9 ( 2 ) 994 4.3 1.4 26.9 14.2 60.7 21.7 5.6 10.3 Vermont ........................ - 5 - 468 - - - .4 - 18.8 - 20.1 Virginia ....................... 10 16 1,307 1,615 44.5 40.1 2.0 5.8 45.4 49.7 18.2 17.5 Washington ..................... 9 30 1,069 5,048 5.6 3.1 5.1 35.4 32.5 35.5 23.9 16.9 West Virginia .................. 3 ( 2 ) 435 ( 2 ) .2 4.6 - - 10.6 31.2 12.9 15.6 Wisconsin ...................... 11 57 2,649 7,625 6.7 2.5 16.7 12.2 29.0 18.0 20.1 14.4 Wyoming ........................ - ( 2 ) - ( 2 ) - .5 - - - 37.4 - 46.3 Puerto Rico .................... 6 11 2,104 1,601 ( 3 ) ( 3 ) ( 3 ) ( 3 ) 61.7 52.0 6.3 10.9 1 See footnote 1, table 1. 2 Data do not meet BLS or state agency disclosure standards. 3 Data are not available. r = revised. p = preliminary. NOTE: Dash represents zero. Table 4. Census region and division: Extended mass layoff events, separations, and initial claimants for unemployment insurance, private nonfarm sector, selected quarters, 2004 and 2005 Initial claimants for Layoff events Separations unemployment insurance Census region and division IV III IV IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p 2004 2005r 2005p United States(1) ...... 1,427 1,136 1,299 273,967 201,276 217,803 262,049 189,443 178,896 Northeast ..................... 298 228 235 48,461 31,395 33,734 58,044 37,650 33,681 New England ............... 51 35 40 9,800 4,443 7,825 8,110 4,529 5,329 Middle Atlantic ........... 247 193 195 38,661 26,952 25,909 49,934 33,121 28,352 South ......................... 265 567 225 47,028 93,317 39,487 42,867 86,124 29,688 South Atlantic ............ 166 137 138 30,802 29,580 22,042 26,399 27,162 18,208 East South Central ........ 40 75 43 6,502 16,061 6,581 5,361 13,591 4,320 West South Central ........ 59 355 44 9,724 47,676 10,864 11,107 45,371 7,160 Midwest ....................... 608 213 643 110,693 46,876 106,095 113,135 45,746 88,321 East North Central ........ 441 172 475 82,685 36,626 79,845 85,505 37,241 65,294 West North Central ........ 167 41 168 28,008 10,250 26,250 27,630 8,505 23,027 West .......................... 256 128 196 67,785 29,688 38,487 48,003 19,923 27,206 Mountain .................. 57 20 66 14,495 8,191 12,265 8,136 3,546 7,456 Pacific ................... 199 108 130 53,290 21,497 26,222 39,867 16,377 19,750 1 See footnote 1, table 1. r = revised. 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 5. State distribution: Extended mass layoff events, separations, and initial claimants for unemployment insurance, private nonfarm sector, selected quarters, 2004 and 2005 Initial claimants for Layoff events Separations unemployment insurance State IV III IV IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p 2004 2005r 2005p Total, private nonfarm(1) .. 1,427 1,136 1,299 273,967 201,276 217,803 262,049 189,443 178,896 Alabama ........................ 4 3 6 1,005 444 806 1,005 384 622 Alaska ......................... 10 3 8 1,451 670 2,138 1,451 756 1,282 Arizona ........................ 8 3 ( 2 ) 2,034 1,406 ( 2 ) 1,244 787 ( 2 ) Arkansas ....................... 4 ( 2 ) ( 2 ) 651 ( 2 ) ( 2 ) 368 ( 2 ) ( 2 ) California ..................... 131 87 79 40,882 16,921 13,959 28,771 13,199 10,461 Colorado ....................... 22 5 18 5,507 4,691 3,297 2,866 705 2,169 Connecticut .................... 6 9 8 1,498 1,382 1,426 1,091 980 904 Delaware ....................... - - - - - - - - - District of Columbia ........... - ( 2 ) - - ( 2 ) - - ( 2 ) - Florida ........................ 106 78 74 19,258 18,156 12,824 16,200 14,659 10,476 Georgia ........................ 13 13 15 1,239 1,002 1,893 2,160 2,224 1,780 Hawaii ......................... 5 3 3 487 336 308 419 359 300 Idaho .......................... 10 7 18 1,435 1,185 2,645 1,946 1,143 2,362 Illinois ....................... 155 75 164 36,251 16,862 32,967 29,161 15,346 21,335 Indiana ........................ 34 10 42 5,021 2,614 5,164 8,529 3,669 5,263 Iowa ........................... 35 3 34 4,708 1,510 4,911 6,533 1,713 4,317 Kansas ......................... 11 5 4 2,160 548 875 1,816 500 630 Kentucky ....................... 24 15 24 3,091 2,613 3,898 2,678 1,616 2,324 Louisiana ...................... 19 331 18 3,665 44,614 6,982 2,207 41,600 2,751 Maine .......................... 7 3 4 3,558 207 2,645 1,943 315 647 Maryland ....................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) Massachusetts .................. 22 19 16 2,886 2,461 2,077 3,191 2,893 2,154 Michigan ....................... 92 38 107 15,758 7,530 14,107 19,338 8,339 17,405 Minnesota ...................... 81 19 84 12,553 5,571 12,646 12,510 4,752 10,336 Mississippi .................... 4 45 ( 2 ) 265 9,691 ( 2 ) 261 8,941 ( 2 ) Missouri ....................... 22 12 27 5,384 2,301 5,951 4,562 1,419 5,926 Montana ........................ 5 ( 2 ) 11 647 ( 2 ) 1,136 444 ( 2 ) 969 Nebraska ....................... 9 ( 2 ) 11 1,030 ( 2 ) 998 902 ( 2 ) 964 Nevada ......................... 4 ( 2 ) 5 410 ( 2 ) 505 326 ( 2 ) 433 New Hampshire .................. 7 3 5 804 333 981 804 281 936 New Jersey ..................... 44 34 32 7,255 6,195 4,264 7,732 5,173 3,741 New Mexico ..................... 3 ( 2 ) ( 2 ) 655 ( 2 ) ( 2 ) 655 ( 2 ) ( 2 ) New York ....................... 116 94 99 18,846 14,132 14,268 20,347 15,757 13,534 North Carolina ................. 17 20 21 3,030 5,906 2,308 2,087 6,363 2,308 North Dakota ................... 8 - 6 1,173 - 744 1,173 - 744 Ohio ........................... 80 38 105 10,740 7,018 19,640 12,397 7,238 13,666 Oklahoma ....................... 4 ( 2 ) 3 407 ( 2 ) 361 642 ( 2 ) 590 Oregon ......................... 21 6 10 4,293 1,653 5,785 3,980 994 2,659 Pennsylvania ................... 87 65 64 12,560 6,625 7,377 21,855 12,191 11,077 Rhode Island ................... 6 ( 2 ) ( 2 ) 685 ( 2 ) ( 2 ) 712 ( 2 ) ( 2 ) South Carolina ................. 6 10 10 1,094 1,408 1,898 1,129 1,779 1,855 South Dakota ................... ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) Tennessee ...................... 8 12 11 2,141 3,313 1,739 1,417 2,650 1,243 Texas .......................... 32 21 22 5,001 2,581 3,310 7,890 3,321 3,722 Utah ........................... 3 ( 2 ) 9 457 ( 2 ) 1,638 358 ( 2 ) 994 Vermont ........................ 3 - 5 369 - 468 369 - 468 Virginia ....................... 14 10 16 3,568 1,300 2,808 3,155 1,307 1,615 Washington ..................... 32 9 30 6,177 1,917 4,032 5,246 1,069 5,048 West Virginia .................. 8 3 ( 2 ) 1,848 1,067 ( 2 ) 1,207 435 ( 2 ) Wisconsin ...................... 80 11 57 14,915 2,602 7,967 16,080 2,649 7,625 Wyoming ........................ ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) Puerto Rico .................... 4 6 11 284 480 1,411 1,471 2,104 1,601 1 See footnote 1, table 1. 2 Data do not meet BLS or state agency disclosure standards. r = revised. p = preliminary. NOTE: Dash represents zero. Table 6. Information technology-producing industries: Extended mass layoff events and separations, private nonfarm sector, 1998-2005 Information technology-producing industries(1) Year Total extended mass layoffs Computer Software and Communications Communications hardware(2) computer services(3) equipment(4) services(5) Layoff Layoff Layoff Layoff Layoff events Separations events Separations events Separations events Separations events Separations 1998 First quarter ..... 1,115 178,251 29 5,212 8 1,550 7 725 9 1,685 Second quarter .... 1,333 336,536 37 8,455 5 357 7 1,317 5 650 Third quarter ..... 1,028 201,186 63 11,066 5 1,175 12 3,031 5 1,051 Fourth quarter .... 1,383 275,272 37 11,336 5 974 7 1,898 6 764 Total ......... 4,859 991,245 166 36,069 23 4,056 33 6,971 25 4,150 1999 First quarter ..... 1,262 230,711 35 4,363 10 1,796 10 1,600 6 1,002 Second quarter .... 1,194 246,251 28 3,891 7 1,731 8 1,097 ( 6 ) ( 6 ) Third quarter ..... 898 184,429 22 11,546 7 1,141 5 840 ( 6 ) ( 6 ) Fourth quarter .... 1,202 240,060 18 2,757 5 526 4 807 6 1,430 Total ......... 4,556 901,451 103 22,557 29 5,194 27 4,344 18 3,930 2000 First quarter ..... 1,081 202,500 22 5,195 14 2,717 9 1,402 4 771 Second quarter .... 1,055 205,861 18 8,862 22 9,114 7 805 7 977 Third quarter ..... 817 174,628 10 1,678 12 1,422 4 1,465 6 1,280 Fourth quarter .... 1,638 332,973 16 3,070 22 3,521 5 946 7 1,020 Total ......... 4,591 915,962 66 18,805 70 16,774 25 4,618 24 4,048 2001 First quarter ..... 1,546 304,171 91 20,991 44 7,963 22 4,441 24 5,312 Second quarter .... 1,828 430,499 161 38,986 87 12,943 36 12,109 28 6,386 Third quarter ..... 1,629 330,391 142 24,813 55 6,820 39 8,200 36 7,134 Fourth quarter .... 2,372 459,771 109 17,797 56 8,290 43 10,124 48 11,252 Total ......... 7,375 1,524,832 503 102,587 242 36,016 140 34,874 136 30,084 2002 First quarter ..... 1,611 299,266 84 18,574 39 4,442 32 8,192 42 6,664 Second quarter .... 1,624 344,606 69 11,764 49 5,454 27 4,870 53 8,538 Third quarter ..... 1,186 255,152 76 15,017 42 5,415 34 6,529 42 7,945 Fourth quarter .... 1,916 373,307 74 14,298 32 7,071 19 3,645 39 8,987 Total ......... 6,337 1,272,331 303 59,653 162 22,382 112 23,236 176 32,134 2003 First quarter ..... 1,502 286,947 71 11,900 33 5,689 23 4,402 41 6,591 Second quarter .... 1,799 368,273 54 9,221 27 4,124 21 3,098 29 5,891 Third quarter ..... 1,190 236,333 46 6,488 26 4,433 9 1,289 15 2,604 Fourth quarter .... 1,690 325,333 25 5,080 14 1,984 9 1,619 28 6,635 Total ......... 6,181 1,216,886 196 32,689 100 16,230 62 10,408 113 21,721 2004 First quarter ..... 1,339 276,503 27 3,222 16 2,992 8 894 23 4,197 Second quarter .... 1,358 278,831 18 2,959 21 3,576 - - 22 5,295 Third quarter ..... 886 164,608 13 2,288 15 1,617 4 430 13 4,317 Fourth quarter .... 1,427 273,967 18 3,055 10 1,547 4 563 23 3,457 Total ......... 5,010 993,909 76 11,524 62 9,732 16 1,887 81 17,266 2005 First quarter ..... 1,142 187,128 13 1,526 13 2,679 4 439 17 3,569 Second quarter .... 1,203 (r)245,790 20 (r)2,973 17 2,106 4 842 11 1,904 Third quarter(r) .. 1,136 201,276 23 3,280 12 1,742 ( 6 ) ( 6 ) 11 1,127 Fourth quarter(p) . 1,299 217,803 19 3,450 7 1,331 ( 6 ) ( 6 ) 7 992 Total(p) ...... 4,780 851,997 75 11,229 49 7,858 13 3,000 46 7,592 1 Information technology-producing industries are defined in Digital Economy 2003, Economics and Statistics Administration, U.S. Department of Commerce. 2 The industries included in this grouping, based on the 2002 North American Industry Classification System (NAICS), are: semiconductor machinery manufacturing; office machinery manufacturing; electronic computer manufacturing; computer storage device manufacturing; computer terminal manufacturing; other computer peripheral equipment mfg.; electron tube manufacturing; bare printed circuit board manufacturing; semiconductors and related device mfg.; electronic capacitor manufacturing; electronic resistor manufacturing; electronic coils, transformers, and inductors; electronic connector manufacturing; printed circuit assembly manufacturing; other electronic component manufacturing; industrial process variable instruments; electricity and signal testing instruments; analytical laboratory instrument mfg.; computer and software merchant wholesalers; and computer and software stores. 3 The industries included in this grouping, based on the 2002 North American Industry Classification System (NAICS), are: software publishers; internet service providers; web search portals; data processing and related services; computer and software merchant wholesalers; computer and software stores; custom computer programming services; computer systems design services; computer facilities management services; other computer related services; office equipment rental and leasing; and computer and office machine repair. 4 The industries included in this grouping, based on the 2002 North American Industry Classification System (NAICS), are: telephone apparatus manufacturing; audio and video equipment manufacturing; broadcast and wireless communications equip.; fiber optic cable manufacturing; software reproducing; and magnetic and optical recording media mfg. 5 The industries included in this grouping, based on the 2002 North American Industry Classification System (NAICS), are: wired telecommunications carriers; cellular and other wireless carriers; telecommunications resellers; cable and other program distribution; satellite telecommunications; other telecommunications; and communication equipment repair. 6 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero. r = revised. p = preliminary. Table 7. Industry distribution: Extended mass layoff events and separations associated with the movement of work, selected quarters, 2004 and 2005 Layoff events Separations Industry IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p Total, private nonfarm(1) ................. 83 68 54 19,599 15,497 9,851 Mining ...................................... - - - - - - Utilities ................................... - - ( 2 ) - - ( 2 ) Construction ................................ - - - - - - Manufacturing ............................... 56 43 38 12,782 7,546 7,719 Food ................................... 5 5 4 1,401 929 816 Beverage and tobacco products .......... - - - - - - Textile mills .......................... ( 2 ) ( 2 ) 3 ( 2 ) ( 2 ) 323 Textile product mills .................. - ( 2 ) - - ( 2 ) - Apparel ................................ 3 3 3 1,405 362 540 Leather and allied products ............ ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) Wood products .......................... ( 2 ) - - ( 2 ) - - Paper .................................. 3 4 - 380 695 - Printing and related support activities ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) Petroleum and coal products ............ - - - - - - Chemicals ............................. ( 2 ) 3 ( 2 ) ( 2 ) 563 ( 2 ) Plastics and rubber products ........... ( 2 ) ( 2 ) - ( 2 ) ( 2 ) - Nonmetallic mineral products ........... - - ( 2 ) - - ( 2 ) Primary metals ......................... ( 2 ) - - ( 2 ) - - Fabricated metal products .............. ( 2 ) 7 ( 2 ) ( 2 ) 749 ( 2 ) Machinery .............................. 3 3 ( 2 ) 604 594 ( 2 ) Computer and electronic products ....... 7 6 7 2,390 1,169 1,469 Electrical equipment and appliances .... 4 ( 2 ) ( 2 ) 960 ( 2 ) ( 2 ) Transportation equipment ............... 8 7 5 1,440 1,665 1,567 Furniture and related products ......... 8 - 3 1,863 - 347 Miscellaneous manufacturing ............ 3 - ( 2 ) 692 - ( 2 ) Wholesale trade ............................. 3 5 ( 2 ) 307 744 ( 2 ) Retail trade ................................ 3 4 ( 2 ) 1,429 1,078 ( 2 ) Transportation and warehousing .............. 3 4 - 619 4,489 - Information ................................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) Finance and insurance ....................... 7 6 4 1,449 695 746 Real estate and rental and leasing .......... ( 2 ) - - ( 2 ) - - Professional and technical services ......... ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) Management of companies and enterprises ..... ( 2 ) - - ( 2 ) - - Administrative and waste services ........... 5 ( 2 ) 4 813 ( 2 ) 411 Educational services ........................ - - - - - - Health care and social assistance ........... - ( 2 ) - - ( 2 ) - Arts, entertainment, and recreation ......... - - - - - - Accommodation and food services ............. ( 2 ) - ( 2 ) ( 2 ) - ( 2 ) Other services, except public administration - ( 2 ) - - ( 2 ) - Unclassified ................................ - - - - - - 1 See footnote 1, table 1. 2 Data do not meet BLS or state agency disclosure standards. r = revised. p = preliminary. NOTE: Dash represents zero. Table 8. Reason for layoff: Extended mass layoff events and separations associated with the movement of work, selected quarters, 2004 and 2005 Layoff events Separations Reason for layoff IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p Total, private nonfarm(1) ..... 83 68 54 19,599 15,497 9,851 Automation ....................... ( 2 ) - - ( 2 ) - - Bankruptcy ....................... - ( 2 ) - - ( 2 ) - Business ownership change ........ ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) Contract cancellation ............ 3 ( 2 ) ( 2 ) 424 ( 2 ) ( 2 ) Contract completed ............... - ( 2 ) - - ( 2 ) - Energy-related ................... - - - - - - Environment-related .............. - - - - - - Financial difficulty ............. 5 6 ( 2 ) 2,025 791 ( 2 ) Import competition ............... 5 6 8 586 1,183 1,399 Labor dispute .................... - ( 2 ) - - ( 2 ) - Material shortage ................ - ( 2 ) - - ( 2 ) - Model changeover ................. - - - - - - Natural disaster ................. - - - - - - Non-natural disaster ............. - - - - - - Plant or machine repair .......... - - - - - - Product line discontinued ........ 3 5 - 1,033 481 - Reorganization within company .... 49 39 37 10,733 7,714 7,132 Seasonal work .................... ( 3 ) ( 3 ) ( 3 ) ( 3 ) ( 3 ) ( 3 ) Slack work ....................... 4 ( 2 ) ( 2 ) 594 ( 2 ) ( 2 ) Vacation period .................. ( 3 ) ( 3 ) ( 3 ) ( 3 ) ( 3 ) ( 3 ) Weather-related .................. - - - - - - Other ............................ 11 ( 2 ) 4 3,551 ( 2 ) 624 Not reported ..................... - - - - - - 1 See footnote 1, table 1. 2 Data do not meet BLS or state agency disclosure standards. 3 The questions on movement of work were not asked of employers when the reason for layoff was either seasonal work or vacation period. r = revised. p = preliminary. NOTE: Dash represents zero. Table 9. Census region and division: Extended mass layoff events and separations associated with the movement of work, selected quarters, 2004 and 2005 Layoff events Separations Census region and division IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p United States(1) .. 83 68 54 19,599 15,497 9,851 Northeast ................. 15 10 13 3,526 1,651 2,321 New England ........... 5 5 ( 2 ) 1,211 653 ( 2 ) Middle Atlantic ....... 10 5 ( 2 ) 2,315 998 ( 2 ) South ..................... 26 22 17 7,901 3,961 2,860 South Atlantic ........ 19 ( 2 ) 11 4,647 ( 2 ) 1,544 East South Central .... ( 2 ) ( 2 ) 3 ( 2 ) ( 2 ) 253 West South Central .... ( 2 ) ( 2 ) 3 ( 2 ) ( 2 ) 1,063 Midwest ................... 21 17 12 4,679 7,347 2,878 East North Central .... ( 2 ) 14 9 ( 2 ) 3,551 1,935 West North Central .... ( 2 ) 3 3 ( 2 ) 3,796 943 West ...................... 21 19 12 3,493 2,538 1,792 Mountain .............. 5 ( 2 ) ( 2 ) 728 ( 2 ) ( 2 ) Pacific ............... 16 ( 2 ) ( 2 ) 2,765 ( 2 ) ( 2 ) 1 See footnote 1, table 1. 2 Data do not meet BLS or state agency disclosure standards. r = revised. p = preliminary. NOTE: The States (including the District of Columbia) that comprise the census divisions are: New England: Connecticut, Maine, Massa chusetts, 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 10. Extended mass layoff events and separations, selected measures, selected quarters, 2004 and 2005 Layoff events Separations Action IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p Total, private nonfarm(1) .......... 1,427 1,136 1,299 273,967 201,276 217,803 Total, excluding seasonal and vacation events(2) ......... 760 953 572 144,108 163,622 94,190 Total, movement of work(3) ..... 83 68 54 19,599 15,497 9,851 Movement of work action ...... 138 83 73 ( 4 ) ( 4 ) ( 4 ) With separations reported .. 95 62 50 13,351 8,035 6,271 With separations unknown ... 43 21 23 ( 4 ) ( 4 ) ( 4 ) 1 See footnote 1, table 1. 2 The question on movement of work were not asked of employers when the reason for layoff was either seasonal work or vacation period. 3 Movement of work can involve more than one action. 4 Data are not available. r = revised. p = preliminary. Table 11. Movement of work actions by type of separation where number of separations is known by employers, selected quarters, 2004 and 2005 Layoff events(1) Separations Actions IV III IV IV III IV 2004 2005r 2005p 2004 2005r 2005p With separations reported(2) .. 95 62 50 13,351 8,035 6,271 By location Out-of-country relocations .. 32 20 19 5,258 2,702 2,047 Within company .......... 29 15 14 4,825 2,137 1,355 Different company ....... 3 5 5 433 565 692 Domestic relocations ........ 63 42 31 8,093 5,333 4,224 Within company .......... 55 32 26 7,285 3,075 3,823 Different company ....... 8 10 5 808 2,258 401 Unable to assign place of relocation ............... - - - - - - By company Within company .............. 84 47 40 12,110 5,212 5,178 Domestic ................ 55 32 26 7,285 3,075 3,823 Out of country .......... 29 15 14 4,825 2,137 1,355 Unable to assign ........ - - - - - - Different company ........... 11 15 10 1,241 2,823 1,093 Domestic ................ 8 10 5 808 2,258 401 Out of country .......... 3 5 5 433 565 692 Unable to assign ........ - - - - - - 1 Only actions for which separations associated with the movement of work were reported are shown. 2 See footnote 1, table 1. r = revised. p = preliminary. Note: Dash represents zero.