Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 98-27 Media contact: 606-5902 For release: 10:00 A.M. EST Tuesday, February 3, 1998 MASS LAYOFFS IN NOVEMBER 1997 In November 1997, there were 1,095 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month, according to preliminary 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 94,287 workers were involved. (Preliminary figures may not include all states.) Both the number of layoff events and initial claimants for unemployment insurance were lower than in November 1996. (See table 1.) The monthly data in this release cover 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, 3,412 layoff events involving 394,804 initial claimants for unemployment insurance occurred in July, August, and September of 1997 combined. The third-quarter 1997 figures for mass layoffs lasting more than 30 days, however, were 978 events and 138,545 claimants. Twenty-nine percent of all mass layoffs in the July-September period lasted for more than a month. (See table 1.) In all quarters for which data are available, the proportion of all mass layoffs that were "extended" varied from about 29 to 47 percent. Industry Distribution In November 1997, manufacturing industries accounted for 31 percent of all mass layoff events and 36 percent of all initial claims filed. (See table 3.) Manufacturing industries that had the largest numbers of initial claimants were: Food and kindred products 6,749 Lumber and wood products 4,035 Industrial machinery and equipment 3,562 Apparel and other textile products 3,417 Within private-sector nonmanufacturing industries (including agriculture), construction accounted for 32 percent of the layoff events and 30 percent of the initial claims (primarily in heavy construction, except buildings and special trade contractors). Agriculture principally (agricultural services) contributed an additional 26 percent to layoff events and 20 percent to initial claims. - 2 - Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were heavy construction, except buildings (10,895), agricultural services (6,022), and business services (5,679). Compared with November 1996, the largest increase in initial claims occurred in motion pictures (1,712). Transportation equipment (-4,974) and food and kindred products (-4,089) experienced the largest declines in initial claims during the same period. State Distribution Among the 47 states and the District of Columbia reporting preliminary data for November, California had the largest number of initial claims filed in mass layoff events (23,323), followed by Pennsylvania (9,968) and Wisconsin (7,889). These three states accounted for 49 percent of the total number of layoff events and 44 percent of initial claims reported. (At the time these figures were compiled, information for Arkansas, Florida, and Iowa was not available.) California alone accounted for 31 percent of the layoff events and 25 percent of the initial claims. (See table 2.) From November 1996 to November 1997, Oregon reported the largest over- the-year rise in initial claims (1,740), primarily in food products and lumber and wood products. California had the sharpest over-the-year decline in initial claims (-9,139), mostly in agricultural production crops and agricultural services. 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, July 1996 to November 1997 Extended mass layoffs Event Date Total mass layoffs lasting more than 30 days realization rate (1) Events Initial Events Initial claimants claimants 1996 July................... 1,534 192,155 August................. 918 83,166 September.............. 513 42,376 Third quarter...... 2,965 317,697 1,018 195,007 34.3 October................ 1,289 131,850 November............... 1,433 130,774 December............... 1,824 204,123 Fourth quarter..... 4,546 466,747 1,908 366,052 42.0 1997 January................ 2,119 211,303 February............... 752 63,036 March.................. 770 83,048 First quarter...... 3,641 357,387 1,252 219,170 34.4 April.................. 1,266 151,958 May.................... 1,141 100,492 June................... 1,230 120,304 Second quarter..... 3,637 372,754 (2)1,539 (2)282,535 42.3 July................... (r)1,891 (r)236,415 August................. (r)977 (r)100,019 September(3)........... (r)544 (r)58,370 Third quarter(p)... 3,412 394,804 (4)978 (4)138,545 28.7 October(5)............. (r)1,375 (r)135,760 November(6)............ (p)1,095 (p)94,287 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. 2 Data exclude Iowa. 3 Data exclude Arkansas. 4 Data exclude Arkansas, Iowa, Michigan, and Tennessee. 5 Data exclude Arkansas and Iowa. 6 Data exclude Arkansas, Florida, and Iowa. NOTE: Data for total mass layoff events and initial claimants for unemployment insurance have been revised for January through December 1996 due to the inclusion of new data for Louisiana. p = preliminary. r = revised. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, November 1996 and November 1997 Mass layoff events Initial claimants for unemployment insurance State November November November November 1996 1997 1996 1997 Total( 1 )........................ r1,433 1,095 r130,774 94,287 Alabama ............................. 5 5 352 342 Alaska .............................. 7 ( 2 ) 516 ( 2 ) Arizona ............................. 9 5 730 449 Arkansas ............................ 20 ( 1 ) 3,250 ( 1 ) California .......................... 457 344 32,462 23,323 Colorado ............................ 7 3 472 235 Connecticut ......................... 3 5 252 372 Delaware ............................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) District of Columbia ................ - - - - Florida ............................. 38 ( 1 ) 2,294 ( 1 ) Georgia ............................. 7 11 631 934 Hawaii .............................. 7 5 584 504 Idaho ............................... 11 3 1,507 232 Illinois ............................ 65 44 6,394 4,470 Indiana ............................. 43 26 4,359 2,734 Iowa ................................ 13 ( 1 ) 1,069 ( 1 ) Kansas .............................. 4 3 362 177 Kentucky ............................ 4 5 947 343 Louisiana ........................... r15 9 r1,240 747 Maine ............................... 5 5 406 338 Maryland ............................ 10 9 1,870 756 Massachusetts ....................... 12 10 1,226 720 Michigan ............................ 40 20 3,982 2,038 Minnesota ........................... 46 42 4,024 4,029 Mississippi ......................... 5 5 354 430 Missouri ............................ 21 14 2,270 1,267 Montana ............................. 7 5 622 752 Nebraska ............................ ( 2 ) - ( 2 ) - Nevada .............................. 11 11 1,012 1,334 New Hampshire ....................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) New Jersey .......................... 38 42 4,892 4,537 New Mexico .......................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) New York ............................ r41 52 r4,598 4,066 North Carolina ...................... 12 10 1,076 738 North Dakota ........................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Ohio ................................ 68 46 5,413 4,177 Oklahoma ............................ 7 5 505 731 Oregon .............................. 8 23 708 2,448 Pennsylvania ........................ 106 115 9,090 9,968 Rhode Island ........................ 5 4 419 455 South Carolina ...................... 37 11 3,732 883 South Dakota ........................ - - - - Tennessee ........................... 12 13 1,116 882 Texas ............................... 78 55 7,556 6,429 Utah ................................ ( 2 ) - ( 2 ) - Vermont ............................ - - - - Virginia ............................ 28 19 3,810 1,621 Washington .......................... 12 22 1,008 2,050 West Virginia ....................... 5 ( 2 ) 423 ( 2 ) Wisconsin ........................... 95 81 12,489 7,889 Wyoming ............................. - - - - Puerto Rico ......................... 6 - 665 - 1 For November 1997, data were reported by the District of Columbia and all states, except Arkansas, Florida, and Iowa. 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, November 1996 and November 1997 Mass layoff events Initial claimants for unemployment insurance Industry November November November November 1996 1997 1996 1997 Total( 1 )....................................... 1,433 1,095 130,774 94,287 Total, private......................................... 1,381 1,063 126,615 91,608 Agriculture.......................................... 185 176 14,264 10,807 Nonagriculture....................................... 1,130 838 107,117 76,531 Manufacturing...................................... 557 342 61,998 33,744 Durable Goods................................... 278 165 35,671 17,605 Lumber and wood products..................... 34 37 3,698 4,035 Furniture and fixtures....................... 16 6 2,807 813 Stone, clay, and glass products.............. 17 16 1,224 1,115 Primary metal industries..................... 23 11 2,261 1,830 Fabricated metal products.................... 27 19 5,095 1,380 Industrial machinery and equipment........... 34 20 5,804 3,562 Electronic and other electrical equipment.... 43 20 5,021 1,431 Transportation equipment..................... 55 22 7,338 2,364 Instruments and related products............. 10 3 831 146 Miscellaneous manufacturing industries....... 19 11 1,592 929 Nondurable goods................................ 279 177 26,327 16,139 Food and kindred products.................... 110 66 10,838 6,749 Textile mill products........................ 36 15 3,576 1,616 Apparel and other textile products........... 62 46 4,726 3,417 Paper and allied products.................... 11 13 1,393 1,251 Printing and publishing...................... 9 7 650 476 Chemicals and allied products................ 6 6 660 436 Petroleum and coal products.................. 11 6 903 607 Rubber and miscellaneous plastics products... 24 12 2,426 1,135 Leather and leather products................. 7 6 840 452 Nonmanufacturing................................... 573 496 45,119 42,787 Mining........................................... 7 10 521 885 Construction..................................... 223 213 16,704 16,195 Transportation and public utilities.............. 35 24 2,660 2,484 Wholesale and retail trade....................... 104 79 8,127 6,858 Wholesale trade............................... 24 22 1,656 1,610 Retail trade.................................. 80 57 6,471 5,248 Finance, insurance, and real estate.............. 16 14 1,156 1,153 Services......................................... 188 156 15,951 15,212 Not identified....................................... 66 49 5,234 4,270 Government............................................. 52 32 4,159 2,679 Federal............................................ 14 3 1,550 297 State.............................................. 21 19 1,549 1,432 Local.............................................. 17 10 1,060 950 1 For November 1997, data were reported by the District of Columbia and all states, except Arkansas, Florida, and Iowa. NOTE: Data for total mass layoff events and initial claimants for unemployment insurance have been revised for November 1996 due to the inclusion of new data for Louisiana and New York.