Technical information: (202) 691-6392 USDL 01-156 http://www.bls.gov/mlshome.htm For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, May 31, 2001 MASS LAYOFFS IN APRIL 2001 In April 2001, there were 1,445 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month, according to data from the U.S. Department of Labor's Bureau of Labor Statistics. Each action involved at least 50 persons from a single establishment, and the number of workers involved totaled 175,064. (See table 1.) In January 2001 through April 2001, the total number of events, at 5,995, and initial claims, at 719,781, were higher than in January-April 2000 (4,889 and 535,327, respectively). The monthly data series in this release cover mass layoffs of 50 or more workers beginning in a given month, regardless of the duration of the lay- offs. Information on the length of the layoff is obtained later and issued in a quarterly release that reports on mass layoffs lasting more than 30 days (referred to as "extended mass layoffs") and provides more information on the industry classification and location of the establishment and on the demo- graphics of the laid-off workers. Because monthly figures include short-term layoffs of 30 days or less, the sum of the figures for the 3 months in a quarter will be higher than the quarterly figure for mass layoffs of more than 30 days. (See table 1.) See the Technical Note for more detailed defi- nitions. Industry Distribution In April 2001, manufacturing industries accounted for 42 percent of all mass layoff events and 44 percent of all initial claims filed. A year earlier, layoffs in manufacturing accounted for 34 percent of events and 32 percent of initial claims. Manufacturing industries with the highest number of initial claimants were transportation equipment (12,583, mostly in motor vehicles and car bodies), electronic and other electrical equip- ment (11,552, largely in semiconductors), and industrial machinery and equip- ment (11,312, primarily in farm machinery and equipment). (See table 2.) Services accounted for 25 percent of events and 28 percent of initial claims filed during the month. Layoffs in services were highly concentrated in business services (particularly in help supply services, which accounted for 12 percent of the total number of initial claimants) and motion pictures. Historically, these industries are more likely than most other industries to lay off workers for fewer than 30 days. Ten percent of all layoff events and 9 percent of initial claims during the month were in retail trade, mostly in general merchandise stores (department stores) and in eating and drinking places. Transportation and public utilities accounted for 8 percent of events and 7 percent of initial claims for the month, largely in local and interurban passenger transit (school buses). Four percent of events and 3 percent of initial claims were in agriculture, primarily in agricultural services (farm labor contractors). - 2 - Compared with April 2000, the largest increases in initial claims were reported in business services (+15,699), followed by industrial machinery and equipment (+9,613) and electronic and other electrical equipment (+9,159). The largest over-the-year decreases in initial claims occurred in the wholesale trade of nondurable goods (-1,198) and in motion pictures (-1,131). Geographic Distribution In April, the West region reported the highest number of initial claims due to mass layoffs (64,715), largely in business services and in motion pictures. (See table 3.) These industries accounted for 40 percent of all claimants in the West. The Northeast region (25,656) continued to report the lowest number of mass layoff-related initial claims. The Midwest reported the largest over-the-year increase in initial claims (+29,743), followed by the West (+24,055), the South (+12,821), and the Northeast (+7,086). Each of the nine geographic divisions also reported over-the-year increases in the number of initial claimants from mass layoff actions, with the largest increase reported in the East North Central (primarily in transportation equipment). Among the 49 states and the District of Columbia that reported data this month, California reported the largest number of initial claims filed in mass layoff events (51,022), mostly in business services and motion pictures, followed by Ohio (12,674) and Pennsylvania (11,635). These three states ac- counted for 42 percent of all layoff events and 43 percent of all initial claims for unemployment insurance. (Montana did not report data because of technical difficulties.) (See table 4.) From April 2000 to April 2001, 39 states reported over-the-year increases in initial claims. California reported the largest increase ininitial claims (+18,004), followed by Ohio (+8,029). Ten states reported over-the-year decreases in initial claims activity, led by New Jersey (-1,079). Technical Note The Mass Layoff Statistics (MLS) program is a federal-state program that uses a standardized, automated approach to identifying, describing, and tracking the effects of major job cutbacks, using data from each state's unemployment insurance database. Each month, states report on establishments which have at least 50 initial claims filed against them during a consecutive 5-week period. These establishments then are contacted by the state agency to determine whether these separations lasted 31 days or longer, and, if so, other information concerning the layoff is collected. States report on layoffs lasting more than 1 month on a quarterly basis. A given month contains an aggregation of the weekly unemployment insurance claims filings for the Sunday through Saturday weeks in that month. All weeks are included for the particular month, except if the first day of the month falls on Saturday. In this case, the week is included in the prior month's tabulations. This means that some months will contain 4 weeks and others 5 weeks, and the number of weeks in a given month may be different from year to year. Therefore, analysis of over-the- month and over-the-year change should take this calendar effect into consideration. The MLS program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Prior to April 1995, monthly layoff statistics were not available. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone number: 1-800-877-8339. 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, April 1999 to April 2001 Extended mass layoffs lasting more than 30 days Date Total mass layoffs Realization rates(1) Initial Initial Initial Events claimants Events claimants Events claimants 1999 April ...................... 1,270 136,885 May ........................ 1,032 102,738 June ....................... 1,140 130,951 Second Quarter ............. 3,442 370,574 1,444 242,464 42.0 65.4 July ....................... 1,741 221,334 August ..................... 698 75,691 September .................. 717 75,288 Third Quarter .............. 3,156 372,313 1,097 189,973 34.8 51.0 October .................... 1,098 118,938 November ................... 1,336 139,508 December ................... 1,509 162,381 Fourth Quarter ............. 3,943 420,827 1,625 287,685 41.2 68.4 2000 January .................... 1,934 223,322 February ................... 1,045 103,898 March ...................... 986 106,748 First Quarter .............. 3,965 433,968 1,331 (r)221,534 33.6 (r)51.0 April ...................... 924 101,359 May ........................ 984 92,193 June ....................... 1,597 192,025 Second Quarter ............. 3,505 385,577 1,272 (r)231,253 36.3 (r)60.0 July ....................... 1,333 164,978 August ..................... 751 97,215 September .................. 936 106,842 Third Quarter .............. 3,020 369,035 1,014 (r)188,371 33.6 (r)51.0 October .................... 874 103,755 November ................... 1,697 216,514 December ................... 2,677 326,743 Fourth Quarter ............. 5,248 647,012 (r)2,005 (r)375,774 (r)38.2 (r)58.1 2001 January .................... 1,522 200,343 February.................... 1,501 172,908 March (p)................... 1,527 171,466 First Quarter(p) ........... 4,550 544,717 (2)(p)1,664 (2)(p)244,000 (p)36.6 (p)44.8 April(3)(p) ................ 1,445 175,064 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. The initial claimant realization rate is the percentage of total mass-layoff initial claimants associated with layoffs lasting more than 30 days. 2 These quarterly numbers are provisional and will increase as more data on these layoffs become available. Recent experience suggests that the number of extended mass layoff events is generally revised upwards by less than 10 percent and the number of initial claimants associated with such events increases by 25-40 percent. 3 Data exclude Montana. p = preliminary. r = revised. Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance Initial claimants for Mass layoff events unemployment insurance Industry April February March April April February March April 2000 2001 2001(p) 2001(p) 2000 2001 2001(p) 2001(p) Total(1) ........................................ 924 1,501 1,527 1,445 101,359 172,908 171,466 175,064 Total, private ....................................... 894 1,474 1,493 1,413 98,620 170,185 168,095 171,494 Agriculture ........................................ 58 190 120 62 5,296 13,998 9,868 6,043 Nonagriculture ..................................... 822 1,269 1,358 1,348 91,818 154,424 156,466 164,871 Manufacturing .................................... 314 575 659 600 32,656 79,294 86,789 77,353 Durable goods .................................. 148 353 418 396 15,854 53,691 60,439 53,990 Lumber and wood products ..................... 18 35 40 27 1,473 3,598 3,577 2,663 Furniture and fixtures ....................... 8 24 26 18 720 2,358 2,610 2,044 Stone, clay, and glass products .............. 11 9 15 17 804 933 985 1,666 Primary metal industries ..................... 18 43 49 39 2,175 5,109 7,502 5,770 Fabricated metal products .................... 17 54 47 45 1,743 5,416 4,958 4,391 Industrial machinery and equipment ........... 20 45 69 78 1,699 6,967 8,838 11,312 Electronic and other electrical equipment .... 18 65 86 89 2,393 7,315 14,473 11,552 Transportation equipment ..................... 27 66 62 63 4,092 21,138 15,216 12,583 Instruments and related products ............. 5 6 14 16 274 483 1,414 1,407 Miscellaneous manufacturing industries ....... 6 6 10 4 481 374 866 602 Nondurable goods ............................... 166 222 241 204 16,802 25,603 26,350 23,363 Food and kindred products .................... 75 78 80 66 8,209 10,034 7,565 7,320 Tobacco products ............................. ( 2 ) ( 2 ) ( 2 ) - ( 2 ) ( 2 ) ( 2 ) - Textile mill products ........................ 19 33 34 28 2,214 4,422 4,732 4,887 Apparel and other textile products ........... 33 29 35 33 2,855 2,730 4,706 2,972 Paper and allied products .................... 12 19 13 24 821 2,120 1,721 2,847 Printing and publishing ...................... 8 14 14 11 623 1,386 949 921 Chemicals and allied products ................ 3 9 7 12 157 779 732 910 Petroleum and coal products .................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) Rubber and miscellaneous plastics products ... 9 33 48 24 1,131 3,250 4,629 2,907 Leather and leather products ................. 4 3 6 ( 2 ) 459 269 616 ( 2 ) Nonmanufacturing ................................. 508 694 699 748 59,162 75,130 69,677 87,518 Mining ......................................... ( 2 ) 7 ( 2 ) 4 ( 2 ) 1,761 ( 2 ) 266 Construction ................................... 71 134 140 70 5,878 9,991 10,499 6,002 Transportation and public utilities ............ 76 52 76 111 9,103 4,720 7,446 11,950 Wholesale and retail trade ..................... 114 164 173 172 11,652 16,690 18,917 18,026 Wholesale trade ............................. 25 31 26 24 2,668 2,841 2,214 2,156 Retail trade ................................ 89 133 147 148 8,984 13,849 16,703 15,870 Finance, insurance, and real estate ............ ( 2 ) 24 ( 2 ) 25 ( 2 ) 1,812 ( 2 ) ( 2 ) Services ....................................... 219 313 280 366 30,555 40,156 30,360 49,180 Not identified ..................................... 14 15 15 3 1,506 1,763 1,761 580 Government ........................................... 30 27 34 32 2,739 2,723 3,371 3,570 Federal ............................................ 9 7 7 9 676 665 1,136 1,069 State .............................................. 7 8 17 5 894 737 1,508 778 Local .............................................. 14 12 10 18 1,169 1,321 727 1,723 1 For April 2001, data were reported by the District of Columbia and all states, except Montana. 2 Data do not meet BLS or state agency disclosure standards. p = preliminary. NOTE: Dash represents zero. Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division Mass layoff events Initial claimants for unemployment insurance Census region and division April February March April April February March April 2000 2001 2001(p) 2001(p) 2000 2001 2001(p) 2001(p) United States(1) ..... 924 1,501 1,527 1,445 101,359 172,908 171,466 175,064 Northeast .................... 186 176 194 244 18,570 18,161 20,783 25,656 New England .............. 43 43 33 69 5,398 5,630 3,200 7,487 Middle Atlantic .......... 143 133 161 175 13,172 12,531 17,583 18,169 South ........................ 187 271 317 305 19,695 36,098 39,088 32,516 South Atlantic ........... 89 131 148 131 9,492 17,355 16,715 15,156 East South Central ....... 37 56 67 71 3,371 7,280 8,295 6,678 West South Central ....... 61 84 102 103 6,832 11,463 14,078 10,682 Midwest ...................... 201 320 368 361 22,434 45,891 48,470 52,177 East North Central ....... 161 260 292 288 17,412 39,121 39,620 41,160 West North Central ....... 40 60 76 73 5,022 6,770 8,850 11,017 West ......................... 350 734 648 535 40,660 72,758 63,125 64,715 Mountain ................. 47 51 64 61 4,739 5,124 6,422 6,592 Pacific .................. 303 683 584 474 35,921 67,634 56,703 58,123 1 See footnote 1, table 2. 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 4. State distribution: Mass layoff events and initial claimants for unemployment insurance Initial claimants for Mass layoff events unemployment insurance State April February March April April February March April 2000 2001 2001(p) 2001(p) 2000 2001 2001(p) 2001(p) Total(1) ................. 924 1,501 1,527 1,445 101,359 172,908 171,466 175,064 Alabama ..................... 7 15 10 9 561 2,072 1,075 1,020 Alaska ...................... ( 2 ) ( 2 ) - 4 ( 2 ) ( 2 ) - 404 Arizona ..................... 14 7 20 21 1,612 553 2,136 2,848 Arkansas .................... 4 5 3 9 622 403 316 1,104 California .................. 269 635 522 413 33,018 62,791 48,576 51,022 Colorado .................... 3 4 5 13 312 321 460 1,234 Connecticut ................. 3 5 3 6 236 758 172 511 Delaware .................... ( 2 ) ( 2 ) ( 2 ) - ( 2 ) ( 2 ) ( 2 ) - District of Columbia ........ - ( 2 ) ( 2 ) - - ( 2 ) ( 2 ) - Florida ..................... 39 47 59 43 3,113 3,954 5,160 3,553 Georgia ..................... 6 17 8 14 622 1,673 646 1,207 Hawaii ...................... 6 ( 2 ) 3 5 382 ( 2 ) 253 421 Idaho ....................... 9 12 13 10 783 1,681 1,396 802 Illinois .................... 41 51 54 54 4,729 8,469 7,940 9,785 Indiana ..................... 14 26 30 26 1,294 3,749 6,469 2,995 Iowa ........................ 10 12 16 25 946 1,096 2,561 5,971 Kansas ...................... 4 8 7 4 592 904 600 374 Kentucky .................... 14 23 34 31 1,190 3,587 5,303 3,388 Louisiana ................... 8 11 13 8 488 782 1,176 411 Maine ....................... 4 ( 2 ) 3 8 339 ( 2 ) 392 633 Maryland .................... 3 ( 2 ) 4 ( 2 ) 251 ( 2 ) 307 ( 2 ) Massachusetts ............... 17 18 14 28 2,424 1,540 1,430 2,731 Michigan .................... 18 75 72 47 1,526 14,090 9,375 6,200 Minnesota ................... 8 13 19 19 1,313 2,362 2,325 2,124 Mississippi ................. 5 6 8 15 256 457 773 1,087 Missouri .................... 18 23 31 19 2,171 2,054 3,086 2,109 Montana ..................... 3 ( 2 ) 3 ( 1 ) 289 ( 2 ) 215 ( 1 ) Nebraska .................... - ( 2 ) - 3 - ( 2 ) - 240 Nevada ...................... 12 23 17 9 1,322 2,016 1,647 1,097 New Hampshire ............... 4 4 4 10 335 543 339 1,370 New Jersey .................. 46 24 21 38 4,869 2,349 2,086 3,790 New Mexico .................. 4 3 ( 2 ) 4 297 229 ( 2 ) 304 New York .................... 10 23 18 21 689 1,921 1,756 2,744 North Carolina .............. 12 22 19 25 1,046 2,357 2,104 3,086 North Dakota ................ - - - ( 2 ) - - - ( 2 ) Ohio ........................ 40 53 70 78 4,645 5,063 9,151 12,674 Oklahoma .................... ( 2 ) 10 10 7 ( 2 ) 3,204 1,108 1,116 Oregon ...................... 18 23 36 32 1,751 2,543 5,454 4,310 Pennsylvania ................ 87 86 122 116 7,614 8,261 13,741 11,635 Rhode Island ................ 9 11 5 12 1,417 2,185 536 1,726 South Carolina .............. 16 20 32 33 2,239 3,322 5,870 5,562 South Dakota ................ - 3 3 ( 2 ) - 235 278 ( 2 ) Tennessee ................... 11 12 15 16 1,364 1,164 1,144 1,183 Texas ....................... 47 58 76 79 5,465 7,074 11,478 8,051 Utah ........................ ( 2 ) ( 2 ) 4 4 ( 2 ) ( 2 ) 409 307 Vermont ..................... 6 3 4 5 647 294 331 516 Virginia .................... 12 18 20 12 1,175 2,949 2,068 1,442 Washington .................. 8 22 23 20 566 2,041 2,420 1,966 West Virginia ............... - ( 2 ) 3 ( 2 ) - ( 2 ) 275 ( 2 ) Wisconsin ................... 48 55 66 83 5,218 7,750 6,685 9,506 Wyoming ..................... - - ( 2 ) - - - ( 2 ) - Puerto Rico ................. 12 8 7 15 1,122 490 806 1,670 1 See footnote 1, table 2. 2 Data do not meet BLS or state agency disclosure standards. p = preliminary. NOTE: Dash represents zero.