Internet address: http://stats.bls.gov:80/newsrels.htm Technical information: (202) 606-6396 USDL 97-95 Media contact: 606-5902 For release: 10:00 A.M. EST Thursday, March 20, 1997 MASS LAYOFFS IN DECEMBER 1996 In December 1996, there were 1,801 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month, according to 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 201,483 persons. Both layoff events and the number of workers involved were lower than in December 1995. (See table 1.) The monthly series in this release covers mass layoffs of 50 or more workers beginning in a given month, regardless of duration. Information on the length of the layoff is obtained later for the quarterly release, which includes only mass layoffs lasting more than 30 days (referred to as "extended mass layoffs") along with more information on the establishment classification and location and on the demographics of the laid-off workers. See the Technical Note for more detailed definitions. Because of the inclusion in the monthly figures of short-term layoffs of 30 days or less, the sum of the figures for the 3 months in a quarter will be significantly higher than the quarterly figure for mass layoffs of more than 30 days. For example, the sum of all mass layoffs in July, August, and September of 1996 was 2,878 layoff events involving 307,204 initial claimants for unemployment insurance. The third quarter 1996 figures for mass layoffs lasting more than 30 days, however, were 947 events and 125,828 claimants. One-third (33 percent) of all mass layoffs in the July- September period lasted for more than a month. In all quarters for which data are available, this ratio of "extended" mass layoffs to all mass layoffs varied from about 30 to 45 percent. (See table 1.) State Distribution In the month of December, the states with the largest numbers of initial claims filed in mass layoff events were: California 33,483 Michigan 20,532 Illinois 18,567 South Carolina 12,405 Wisconsin 12,074 Virginia 12,034 - 2 - These six states accounted for over half of the total number of layoff events and initial claims reported. (See table 2.) Layoffs in these states were concentrated in business services (mostly in help supply), textile mill products (mainly in broadwoven fabric mills and knit outerwear), transportation equipment manufacturing (largely in motor vehicles and parts), and electronic and electrical equipment (primarily in household appliances). From December 1995 to December 1996, 30 states and the District of Columbia reported fewer people who filed initial claims stemming from mass layoff events. Indiana reported the sharpest decline in initial claims, largely due to fewer layoffs in electronic equipment and heavy construction. California reported the largest over-the-year rise, primarily in business services and motion pictures. States with the largest over-the-year changes in initial claims were: Increases Decreases California 8,944 Indiana -5,717 Michigan 6,427 Pennsylvania -5,233 South Carolina 4,573 Ohio -4,651 New Jersey 4,148 Wisconsin -4,307 Illinois 3,118 Iowa -3,706 Industry Distribution Manufacturing industries accounted for 48 percent of all initial claims filed and 41 percent of all mass layoff events. (See table 3.) Within manufacturing, more initial claims were filed in durable goods industries than in nondurable goods industries; the number of events was nearly the same in both. Manufacturing industries which had the largest numbers of initial claimants were: Transportation equipment 12,025 Apparel and other textile products 10,677 Electronic and other electrical equipment 10,660 Textile mill products 10,015 Food and kindred products 9,212 Within nonmanufacturing industries (including agriculture), construction accounted for 32 percent of the layoff events and 23 percent of initial claims, primarily due to layoffs in heavy construction (such as highways, streets, bridges, tunnels, etc.). Services (primarily business services, in particular, help supply) contributed an additional 25 percent to each measure. Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were: Heavy construction, except buildings 14,125 Business services 12,525 Local and suburban transit 12,392 Eating and drinking places 10,437 - 3 - Compared with December 1995, the largest changes in initial claims occurred in the following industries: Increases Local and suburban passenger transit 3,937 Business services 3,798 Eating and drinking places 3,281 Motion pictures 2,895 Transportation equipment 2,252 Decreases Heavy construction, except buildings -5,050 Fabricated metal products -1,860 Apparel and other textile products -1,836 Lumber and wood products -1,630 Technical Note The Mass Layoff Statistics (MLS) program is a federal-state program which uses a standardized, automated approach to identifying, describing, and tracking the effects of major job cutbacks, using data from each state’s unemployment insurance database. Each month, states report on establishments which have at least 50 initial claims filed against them during a consecutive 5-week period. These establishments then are contacted by the state agency to determine whether these separations lasted 31 days or longer, and, if so, other information concerning the layoff is collected. States report on layoffs lasting more than one month on a quarterly basis. Monthly reports from the MLS program began with data for September 1996. The program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Previously, however, monthly layoff statistics were not published. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. Definitions Initial claimant. A person who files any notice of unemployment to initiate a request either for a determination of entitlement to and eligibility for compensation, or for a subsequent period of unemployment within a benefit year or period of eligibility. Mass layoff event. Fifty or more initial claims for unemployment insurance benefits filed against an establishment during a 5-week period, regardless of duration. Table 1. Mass layoff events and initial claimants for unemployment insurance, July 1995 to December 1996 Total mass layoffs Extended mass layoffs lasting more than 30 days Event Date realization rate(1) Events Initial Events Initial claimants claimants 1995 July.......................... 1,452 162,229 August........................ 656 55,196 September..................... 684 73,088 Third quarter................. 2,792 290,513 902 146,159 32.3 October....................... 1,050 110,134 November...................... 1,248 130,092 December...................... 2,010 209,060 Fourth quarter................ 4,308 449,286 1,716 295,515 39.8 1996 January....................... 1,666 167,834 February...................... 918 74,984 March......................... 975 121,046 First quarter................. 3,559 363,864 1,354 215,718 38.0 April......................... 1,010 110,873 May........................... 913 78,045 June.......................... 893 77,287 Second quarter................ 2,816 266,205 1,306 188,498 46.4 July.......................... 1,503 189,096 August........................ 869 76,462 September..................... 506 41,646 Third quarter(2).............. 2,878 307,204 p947 p125,828 p32.9 October....................... r1,277 r131,010 November...................... r1,402 r126,795 December...................... 1,801 201,483 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. 2 Data for layoffs lasting more than 30 days were reported by the District of Columbia and all states, except Michigan. p = preliminary. r = revised. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, December 1995 and December 1996 Mass layoff events Initial claimants for unemployment insurance State December December December December 1995 1996 1995 1996 Total.................. 2,010 1,801 209,060 201,483 Alabama.................. 11 4 1,053 499 Alaska................... 7 4 998 359 Arizona.................. 11 10 1,733 922 Arkansas................. 27 22 3,266 2,940 California............... 340 370 24,539 33,483 Colorado................. 13 20 1,132 1,956 Connecticut.............. 14 7 1,314 968 Delaware................. 4 4 1,363 223 District of Columbia..... 6 (1) 1,617 (1) Florida.................. 48 47 2,691 3,381 Georgia.................. 18 9 1,447 631 Hawaii................... (1) 6 (1) 398 Idaho.................... 11 16 1,448 1,826 Illinois................. 123 116 15,449 18,567 Indiana.................. 57 33 9,589 3,872 Iowa..................... 38 6 4,119 413 Kansas................... 18 18 1,475 1,436 Kentucky................. 11 8 1,102 2,345 Louisiana................ 14 12 1,919 1,009 Maine.................... 15 12 1,261 1,099 Maryland................. 47 26 6,615 3,315 Massachusetts............ 52 46 4,695 5,636 Michigan................. 125 157 14,105 20,532 Minnesota................ 56 41 6,662 3,555 Mississippi.............. 5 5 318 284 Missouri................. 60 43 7,048 5,683 Montana.................. 5 (1) 497 (1) Nebraska................. 6 - 496 - Nevada................... 23 23 2,049 2,400 New Hampshire............ 10 4 928 396 New Jersey............... 74 75 6,374 10,522 New Mexico............... 4 5 267 286 New York................. 25 52 2,027 4,461 North Carolina........... 8 12 564 1,119 North Dakota............. (1) (1) (1) (1) Ohio..................... 111 67 10,652 6,001 Oklahoma................. 5 4 463 227 Oregon................... 25 39 2,034 3,719 Pennsylvania............. 166 119 13,914 8,681 Rhode Island............. 21 8 2,737 1,089 South Carolina........... 65 79 7,832 12,405 South Dakota............. - - - - Tennessee................ 30 7 2,572 455 Texas.................... 74 42 8,104 7,578 Utah..................... (1) 12 (1) 1,112 Vermont.................. 11 - 795 - Virginia................. 63 68 10,949 12,034 Washington............... 10 8 803 679 West Virginia............ 9 5 1,253 326 Wisconsin................ 128 122 16,381 12,074 Wyoming.................. (1) - (1) - Puerto Rico.............. 13 6 1,629 488 1 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, December 1995 and December 1996 Mass layoff events Initial claimants for unemployment insurance Industry December December December December 1995 1996 1995 1996 Total, all industries.......................... 2,010 1,801 209,060 201,483 Total, private.................................. 1,987 1,759 205,629 198,656 Agriculture....................................... 108 96 6,665 6,728 Nonagriculture.................................... 1,780 1,582 184,755 182,774 Manufacutring.................................... 857 746 101,205 96,285 Durable goods................................... 439 379 57,147 55,564 Lumber and wood products....................... 71 56 7,211 5,581 Furniture and fixtures......................... 28 23 3,550 3,134 Stone, clay, and glass products................ 48 36 3,915 4,288 Primary metal industries....................... 29 30 3,304 3,727 Fabricated metal products...................... 60 48 7,260 5,400 Industrial machinery and equipment............. 42 38 6,537 6,131 Electronic and other electrical equipment...... 56 55 11,322 10,660 Transportation equipment....................... 59 59 9,773 12,025 Instruments and related products............... 15 8 1,777 912 Miscellaneous manufacturing industries......... 31 26 2,498 3,706 Nondurable goods................................ 418 367 44,058 40,721 Food and kindred products...................... 105 91 10,372 9,212 Tobacco products............................... (1) (1) (1) (1) Textile mill products.......................... 64 56 8,963 10,015 Apparel and other textile products............. 125 107 12,513 10,677 Paper and allied products...................... 26 13 2,137 951 Printing and publishing........................ (1) (1) (1) (1) Chemicals and allied products.................. (1) (1) (1) (1) Petroleum and coal products.................... 15 12 1,574 1,000 Rubber and miscellaneous plastics products..... 51 55 5,343 5,647 Leather and leather products................... 16 13 1,562 1,318 Nonmanufacturing................................. 923 836 83,550 86,489 Mining.......................................... 21 10 1,789 916 Construction.................................... 329 296 26,514 21,663 Transportation and public utilities............. 109 103 12,517 15,146 Wholesale and retail trade...................... 200 173 19,094 21,081 Wholesale trade................................ 37 28 3,616 2,822 Retail trade................................... 163 145 15,478 18,259 Finance, insurance, and real estate............ 13 13 875 1,195 Services....................................... 251 241 22,761 26,488 Not identified.................................... 99 81 14,209 9,154 Government....................................... 23 42 3,431 2,827 Federal......................................... 7 9 1,822 509 State........................................... 9 11 961 890 Local........................................... 7 22 648 1,428 1 Data do not meet BLS or state agency disclosure standards.