Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 98-322 For release: 10:00 A.M. EDT Media contact: 606-5902 Friday, July 31, 1998 MASS LAYOFFS IN APRIL 1998 In April 1998, there were 1,253 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 132,476. Both the number of layoff events and initial claimants for unemployment insurance were slightly lower than in April 1997. (See table 1.) The monthly series in this release covers mass layoffs of 50 or more workers beginning in a given month, regardless of the duration of the layoffs. Information on the length of the layoff is obtained later and issued in a quarterly release that reports on mass layoffs lasting more than 30 days (referred to as "extended mass layoffs") and provides more information on the industry classification and location of the establishment and on the demographics of the laid-off workers. See the Technical Note for more detailed definitions. Because the 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. For example, 4,092 layoff events involving 414,868 initial claimants for unemployment insurance occurred in January, February, and March of 1998 combined. The first-quarter 1998 figures for mass layoffs lasting more than 30 days, however, were 1,276 events and 169,008 claimants. Thirty-one percent of all mass layoffs in the January-March period lasted for more than a month. (See table 1.) In all quarters for which data are available, the proportion of mass layoffs that became "extended" mass layoffs varied from about 29 to 47 percent. Industry Distribution In April 1998, manufacturing industries accounted for 27 percent of all mass layoff events and initial claims filed. Manufacturing industries that had the largest numbers of initial claimants were food products (9,479), primarily canned fruits and vegetables and candy and other confectionery products; transportation equipment (5,312), mostly in motor vehicles and car bodies; and electronic equipment (4,500), particularly in semiconductors. (See table 3.) In nonmanufacturing industries, services accounted for 26 percent of all mass layoff events and 31 percent of all initial claims filed (primarily in business services and motion pictures). Layoffs in business services (specifically help supply services) and the motion picture industry are more likely than those in other industries to last less than 30 days. Retail trade contributed 12 percent to both layoff events and initial claims during the month, largely in eating and drinking establishments. - 2 - Compared with April 1997, the largest increases in initial claims occurred in business services (4,544), agricultural crop production (1,567), agricultural services (1,562), and electronic equipment (1,515). The largest over-the-year decreases in initial claims occurred in transportation equipment (-10,544) and motion pictures (-6,242). State Distribution Among the 50 states and the District of Columbia reporting data for April, California had the largest number of initial claims filed in mass layoff events (61,733), followed by Pennsylvania (10,339). California alone accounted for 47 percent of both the layoff events and the initial claims. (See table 2.) From April 1997 to April 1998, California reported the largest over-the- year rise in initial claims (5,332), primarily in business services. Pennsylvania had the largest over-the-year decline in initial claims (-6,247), mostly in food products, followed by New York (-5,914), primarily in local transit, and Michigan (-4,834), largely in transportation equipment. 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 one month on a quarterly basis. The MLS program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Prior to April 1995, monthly layoff statistics were not available. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. Definitions Initial claimant. A person who files any notice of unemployment to initiate a request either for a determination of entitlement to and eligibility for compensation, or for a subsequent period of unemployment within a benefit year or period of eligibility. Mass layoff event. Fifty or more initial claims for unemployment insurance benefits filed against an establishment during a 5-week period, regardless of duration. Table 1. Mass layoff events and initial claimants for unemployment insurance, April 1996 to April 1998 Extended mass layoffs Date Total mass layoffs lasting more than 30 days Event realization Events Initial Events Initial rate (1) claimants claimants 1996 April(r) .................... 1,030 109,572 May(r) ...................... 942 80,366 June(r) ...................... 924 80,232 Second quarter(r) ........... 2,896 270,170 1,350 207,859 46.6 July ......................... 1,534 192,155 August ....................... 918 83,166 September .................... 513 42,376 Third quarter ................ 2,965 317,697 (r)1,020 (r)200,396 34.4 October ...................... 1,289 131,850 November ..................... 1,433 130,774 December ..................... 1,824 204,123 Fourth quarter ............... 4,546 466,747 (r)1,915 (r)383,816 42.1 1997 January ...................... 2,139 212,860 February ..................... 755 63,352 March ........................ 783 84,069 First quarter ................ 3,677 360,281 1,317 (r)253,385 35.8 April ........................ 1,269 152,168 May .......................... 1,152 101,476 June ......................... 1,238 121,256 Second quarter ............... 3,659 374,900 1,574 (r)318,725 43.0 July ......................... 1,899 237,410 August ....................... 973 99,513 September .................... 548 59,062 Third quarter ................ 3,420 395,985 (r)1,077 (r)215,672 31.5 October ...................... 1,414 139,297 November ..................... 1,156 100,051 December ..................... 1,634 172,029 Fourth quarter ............... 4,204 411,377 (r)1,677 (r)304,173 39.9 1998 January ...................... 2,360 255,203 February ..................... 970 81,455 March ........................ 762 78,210 First quarter ................ 4,092 414,868 1,276 169,008 31.2 April ........................ 1,253 132,476 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. r = revised. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, April 1997 and April 1998 Initial claimants for Mass layoff events unemployment insurance State April April April April 1997 1998 1997 1998 Total( 1 ).................. (r)1,269 1,253 (r)152,168 132,476 Alabama ...................... 5 5 682 423 Alaska ....................... 5 8 375 550 Arizona ...................... 20 29 2,761 3,180 Arkansas ..................... ( 2 ) 7 ( 2 ) 582 California ................... 490 588 56,401 61,733 Colorado ..................... 5 5 428 332 Connecticut .................. 7 - 588 - Delaware ..................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) District of Columbia ......... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Florida ...................... 44 43 3,513 3,167 Georgia ...................... 7 9 603 686 Hawaii ....................... 3 5 186 415 Idaho ........................ 4 5 263 249 Illinois ..................... 42 47 4,182 5,366 Indiana ...................... 19 9 3,913 1,387 Iowa ......................... - ( 2 ) - ( 2 ) Kansas ....................... 8 4 522 368 Kentucky ..................... 5 11 363 1,305 Louisiana .................... (r)8 8 (r)479 823 Maine ........................ - 4 - 325 Maryland ..................... 6 4 592 403 Massachusetts ................ 14 16 2,171 2,010 Michigan ..................... 34 7 5,352 518 Minnesota .................... 13 3 2,096 204 Mississippi .................. ( 2 ) 3 ( 2 ) 423 Missouri ..................... 24 20 4,886 4,583 Montana ...................... 3 4 278 242 Nebraska ..................... ( 2 ) - ( 2 ) - Nevada ....................... ( 2 ) 7 ( 2 ) 511 New Hampshire ................ - - - - New Jersey ................... 43 44 6,453 6,302 New Mexico ................... 4 7 353 599 New York ..................... (r)75 25 (r)8,403 2,489 North Carolina ............... 8 9 1,679 725 North Dakota ................. 7 - 579 - Ohio ......................... 33 42 7,420 5,163 Oklahoma ..................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Oregon ....................... 11 11 806 1,165 Pennsylvania ................. 148 99 16,586 10,339 Rhode Island ................. 3 ( 2 ) 221 ( 2 ) South Carolina ............... 14 15 1,761 2,108 South Dakota ................. - - - - Tennessee .................... 4 5 487 303 Texas ........................ 51 54 6,245 4,679 Utah ......................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Vermont ...................... - - - - Virginia ..................... 15 13 1,181 1,612 Washington ................... 5 18 462 1,612 West Virginia ................ - ( 2 ) - ( 2 ) Wisconsin .................... 71 52 7,864 5,007 Wyoming ...................... - - - - Puerto Rico .................. 17 7 1,979 715 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero. r = revised. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, April 1997 and April 1998 Initial claimants for Mass layoff events unemployment insurance Industry April April April April 1997 1998 1997 1998 Total( 1 )...................................... 1,269 1,253 152,168 132,476 Total, private ...................................... 1,200 1,206 146,635 128,177 Agriculture ....................................... 87 124 7,225 10,354 Nonagriculture .................................... 1,095 1,060 136,605 115,432 Manufacturing ................................... 401 336 55,330 36,018 Durable goods ................................. 168 140 30,831 17,758 Lumber and wood products .................... 22 13 2,246 1,393 Furniture and fixtures ...................... 16 5 1,860 312 Stone, clay, and glass products ............. 7 8 552 654 Primary metal industries .................... 19 5 2,114 603 Fabricated metal products ................... 15 22 1,255 1,899 Industrial machinery and equipment .......... 21 16 2,883 1,275 Electronic and other electrical equipment.... 23 28 2,985 4,500 Transportation equipment .................... 32 27 15,856 5,312 Instruments and related products ............ 6 7 528 495 Miscellaneous manufacturing industries ...... 7 9 552 1,315 Nondurable goods .............................. 233 196 24,499 18,260 Food and kindred products ................... 114 95 12,226 9,479 Tobacco products ............................ ( 2 ) 4 ( 2 ) 431 Textile mill products ....................... 14 16 1,047 1,281 Apparel and other textile products .......... 40 35 4,656 3,160 Paper and allied products ................... 12 12 1,198 1,363 Printing and publishing ..................... 15 9 1,005 622 Chemicals and allied products ............... 5 7 339 733 Petroleum and coal products ................. ( 2 ) 6 ( 2 ) 380 Rubber and miscellaneous plastics products... 17 6 1,407 412 Leather and leather products ................ 11 6 1,607 399 Nonmanufacturing ................................ 694 724 81,275 79,414 Mining ........................................ 3 14 471 1,098 Construction .................................. 84 117 6,604 7,945 Transportation and public utilities ........... 94 92 10,417 10,963 Wholesale and retail trade .................... 182 165 19,263 17,053 Wholesale trade ............................ 26 19 2,288 1,645 Retail trade ............................... 156 146 16,975 15,408 Finance, insurance, and real estate ........... 21 13 1,921 989 Services ...................................... 310 323 42,599 41,366 Not identified .................................... 18 22 2,805 2,391 Government .......................................... 69 47 5,533 4,299 Federal ........................................... 17 8 1,437 726 State ............................................. 18 13 1,855 1,430 Local ............................................. 34 26 2,241 2,143 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Data for total mass layoff events and initial claimants for unemployment insurance have been revised for April 1997 due to the inclusion of new data for Louisiana, New York, and Oklahoma.