An official website of the United States government
For release 10:00 a.m. (EDT) Monday, May 13, 2013 USDL-13-0926 Technical information: (202) 691-6392 * email@example.com * www.bls.gov/mls Media contact: (202) 691-5902 * PressOffice@bls.gov EXTENDED MASS LAYOFFS -- FIRST QUARTER 2013 Employers in the private nonfarm sector initiated 914 mass layoff events in the first quarter of 2013 that resulted in the separation of 154,374 workers from their jobs for at least 31 days, the U.S. Bureau of Labor Statistics reported today. Over the year, total extended mass layoff events and associated worker separations were down from 1,294 and 246,956, respectively. Total events and separations both fell to their lowest first quarter levels on record (with first quarter data available back to 1996). (See table A.) First quarter 2013 layoff data are preliminary and are subject to revision. (See the Technical Note.) Industry Distribution of Extended Layoffs Manufacturing industries had 184 extended mass layoff events and 30,870 separations in the first quarter of 2013, due to both insufficient demand and the completion of seasonal work. Total events and separations in this sector declined to their lowest levels in program history (with quarterly data available back to 1995). (See table 1.) During the quarter, the construction sector had 178 extended mass layoff events and 20,071 separations, largely due to contract completion. The administrative and waste services sector reported 143 layoff events and 23,284 separations. (See table 1.) ______________________________________________________________________________________ | | | Mass Layoffs Data Discontinued | | | |On March 1, 2013, President Obama ordered into effect the across-the-board spending | |cuts (commonly referred to as sequestration) required by the Balanced Budget and | |Emergency Deficit Control Act, as amended. Under the order, the Bureau of Labor | |Statistics (BLS) must cut its current budget by more than $30 million, 5 percent of | |the current 2013 appropriation, by September 30, 2013. In order to help achieve these | |savings and protect core programs, the BLS will eliminate two programs, including | |Mass Layoff Statistics, and all "measuring green jobs" products. This news release is | |the final publication of quarterly extended mass layoff survey data. The final release| |of monthly Mass Layoff Statistics data will occur on June 21st, with publication of | |the May 2013 data. | |______________________________________________________________________________________| Reasons for Extended Layoffs Business demand factors, primarily contract completion, accounted for 39 percent of extended mass layoff events and 42 percent of related separations in the private nonfarm sector during the first quarter of 2013. Layoffs due to the completion of seasonal work accounted for 28 percent of events and 27 percent of separations during the quarter. (See table 2.) Movement of Work In the first quarter of 2013, 21 extended mass layoff events involved movement of work and were associated with 3,421 worker separations, a program low for both figures (movement of work data begin in first quarter 2004). Layoffs involving the movement of work accounted for only 3 percent of all nonseasonal layoff events. Eleven of the events related to movement of work were from manufacturing industries. Employers cited organizational changes as the economic reason for layoff in 9 of the 21 events involving movement of work. Among workers affected by the movement of work, the largest proportion was in the Midwest. (See tables 6-8.) The 21 events with movement of work for the first quarter involved 30 identifiable relocations of work actions. (See table 9.) Employers were able to provide information on the specific number of worker separations for 19 of these actions. Among these actions, the majority were domestic reassignments and involved work moving within the same company. (See table 10.) Table A. Selected measures of extended mass layoff activity Period Layoff events Separations Initial claimants 2009 January-March .......... 3,979 705,141 835,551 April-June ............. 3,395 651,318 731,049 July-September ......... 2,034 345,531 406,823 October-December ....... 2,416 406,212 468,577 2010 January-March .......... 1,870 314,512 368,664 April-June ............. 2,008 381,622 396,441 July-September ......... 1,370 222,357 260,077 October-December ....... 1,999 338,643 390,584 2011 January-March .......... 1,490 225,456 258,220 April-June ............. 1,810 317,546 342,530 July-September ......... 1,393 235,325 291,066 October-December ....... 1,903 334,383 403,457 2012 January-March .......... 1,294 246,956 291,174 April-June (r) ......... 1,959 385,983 383,492 July-September (r) ..... 1,124 199,781 228,818 October-December (r) ... 2,123 424,492 432,792 2013 January-March (p) ...... 914 154,374 133,294 r = revised. p = preliminary. Recall Expectations Permanent worksite closures accounted for 10 percent of the total extended mass layoff events and separations reported during the first quarter of 2013, primarily in the manufacturing and retail sectors. Conversely, 49 percent of the private nonfarm employers reporting a layoff event not involving a closure expected to recall at least some of the workers displaced during the quarter. Of those employers anticipating a recall, 18 percent indicated the offer would be extended to all displaced workers and 57 percent anticipated extending the offer to at least half of the employees. Among those employers expecting to recall laid-off workers, 56 percent intend to do so within 6 months. Excluding extended mass layoff events due to seasonal work and vacation period, employers anticipated recalling the laid-off workers in 36 percent of the events. (See table 11.) Size of Extended Layoffs The average size of a layoff (as measured by the number of separations per layoff event) was 169 workers during the first quarter of 2013. (See table 12.) Events were largely concentrated at the lower end of the extended layoff-size spectrum, with 71 percent involving fewer than 150 workers. Conversely, only 4 percent of layoff events involved 500 or more workers. (See table 13.) Initial Claimant Characteristics A total of 133,294 initial claimants for unemployment insurance were associated with extended mass layoffs in the first quarter of 2013, the fewest claimants reported for any first quarter on record (data are available back to 1996). Of these claimants, 14 percent were black, 21 percent were Hispanic, 37 percent were women, and 20 percent were 55 years of age or older. (See table 3.) In the entire civilian labor force for the same period, 12 percent of all persons were black, 16 percent were Hispanic, 47 percent were women, and 21 percent were 55 years of age or older. Table B. Metropolitan areas with the largest number of initial claimants associated with extended mass layoff events in the first quarter 2013, by residency of claimants 2012 I (r) 2013 I (p) Metropolitan area Initial Initial claimants Rank claimants Rank Total, 372 metropolitan areas ........ 253,522 112,634 Los Angeles-Long Beach-Santa Ana, Calif. ..... 76,620 1 27,042 1 New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. .................... 15,081 3 8,693 2 Riverside-San Bernardino-Ontario, Calif. ..... 16,549 2 6,562 3 Chicago-Joliet-Naperville, Ill.-Ind.-Wis. .... 7,782 5 5,513 4 San Francisco-Oakland-Fremont, Calif. ........ 12,276 4 3,011 5 Las Vegas-Paradise, Nev. ..................... 2,598 15 2,515 6 San Diego-Carlsbad-San Marcos, Calif. ........ 7,684 6 2,392 7 Seattle-Tacoma-Bellevue, Wash. ............... 2,351 18 1,952 8 Philadelphia-Camden-Wilmington, Pa. -N.J.-Del.-Md. ........................... 3,192 11 1,488 9 Fresno, Calif. ............................... 2,597 16 1,483 10 r = revised. p = preliminary. NOTE: The geographic boundaries of the metropolitan areas shown in this table are defined in Office of Management and Budget Bulletin 10-02, December 1, 2009. Geographic Distribution Among the four census regions, the West had the highest number of extended mass layoff events in the first quarter of 2013, primarily in the administrative and support services sector. Among the nine census divisions, the highest number of extended mass layoff events was in the Pacific. (See table 4.) California had the largest number of extended mass layoff events in the first quarter of 2013, followed by New York, Illinois, and Ohio. Excluding layoff activity due to seasonal work and vacation period reasons, California, New York, and Illinois reported the largest numbers of events. (See table 5.) Eighty-five percent of the initial claimants for unemployment insurance associated with extended mass layoff events in the first quarter resided within metropolitan areas. Among the 372 metropolitan areas, Los Angeles-Long Beach-Santa Ana, Calif., had the highest number of resident initial claimants. (See table B.) 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 employer filing initial claims for unemployment insurance during a consecutive 5-week period. Approximately 30 days after a mass layoff is triggered, the employer is contacted for additional information. Data for the current 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 indicator of trend. For additional information about the program, see the Technical Note. ________________ The Mass Layoffs news release for April 2013 is scheduled to be released on Wednesday, May 22, 2013, at 10:00 a.m. (EDT).