Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 99-131 For release: 10:00 A.M. EDT Media contact: 606-5902 Tuesday, May 18, 1999 MASS LAYOFFS IN FEBRUARY 1999 In February 1999, there were 878 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 80,134. Both the number of layoff events and the number of initial claimants for unemployment insurance were slightly lower in February 1999 than in February 1998. (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. 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 definitions. Industry Distribution In February 1999, manufacturing industries accounted for 32 percent of all mass layoff events and 35 percent of the initial claims filed. Manufacturing industries that had the highest numbers of initial claimants were food products (4,789), primarily in candy and other confectionery products and canned fruits and vegetables; transportation equipment (4,174), mostly in motor vehicle and car bodies; and lumber and wood products (2,682), particularly in millwork. (See table 2.) In nonmanufacturing industries, services accounted for 23 percent of all mass layoff events and 30 percent of all initial claims filed. The layoffs were predominantly in motion pictures (mostly in motion pictures and video production) and business services (particularly in help supply services). Layoffs in the motion picture and help supply services industries are more likely than most other industries to last less than 30 days. Agriculture accounted for 13 percent of layoff events and 8 percent of initial claimants during the month, concentrated primarily in agricultural services. Construction accounted for 11 percent of layoff events and 8 percent of initial claimants during the month, largely in heavy construction. Compared with February 1998, the largest increases in initial claims occurred in motion pictures (5,401) and business services (3,377). The - 2 - largest over-the-year decreases in initial claims occurred in transportation equipment (-3,930), local interurban passenger transit (-2,245), and agricultural production crops (-2,147). Geographic Distribution In February, the number of initial claims due to mass layoffs was highest in the West (37,484). (See table 3.) Contributing to layoffs in the West were the motion picture, agricultural, business services, and construction industries. In the Northeast region, the number of mass layoff initial claims was the lowest (10,879) for any February since the inception of the program in April 1995. Initial claims due to mass layoffs in the Northeast region declined by 3,147 over the year. The reduction was largely in the Middle Atlantic division, reflecting fewer layoffs in manufacturing industries, especially transportation equipment. Among the 50 states and the District of Columbia reporting data for February, California had the largest number of initial claims filed in mass layoff events (33,052), primarily in motion pictures, followed by Texas (5,819), Pennsylvania (5,231), and Wisconsin (3,593). These four states accounted for about 62 percent of all layoff events and 60 percent of all initial claimants for unemployment insurance. (See table 4.) From February 1998 to February 1999, Texas reported the largest over- the-year rise in initial claims (3,121), primarily in oil and gas extraction, followed by Missouri (2,104). Maryland had the largest over- the-year decline in initial claims (-2,863), mostly in transportation equipment, followed by Pennsylvania (-2,113). 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: 202-606-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, January 1997 to February 1999 Extended mass layoffs lasting more than 30 days Date Total mass layoffs Event realization rate(1) Initial Initial Events claimants Events claimants 1997 January ..................... 2,139 212,860 February .................... 755 63,352 March ....................... 783 84,069 First quarter ............... 3,677 360,281 1,317 253,221 35.8 April ....................... 1,269 152,168 May ......................... 1,152 101,476 June ........................ 1,238 121,256 Second quarter .............. 3,659 374,900 1,574 318,417 43.0 July ........................ 1,899 237,410 August ...................... 973 99,513 September ................... 548 59,062 Third quarter ............... 3,420 395,985 1,077 216,844 31.5 October ..................... 1,414 139,297 November .................... 1,156 100,051 December .................... 1,634 172,029 Fourth quarter .............. 4,204 411,377 1,677 314,387 39.9 1998 January ..................... 2,360 255,203 February .................... 970 81,455 March ....................... 762 78,210 First quarter ............... 4,092 414,868 1,310 244,639 32.0 April ....................... 1,253 132,476 May ......................... 1,180 107,952 June ........................ 1,208 183,590 Second quarter .............. 3,641 424,018 1,559 401,469 42.8 July ........................ 2,221 286,097 August ...................... 617 53,665 September ................... 637 79,629 Third quarter ............... 3,475 419,391 1,230 252,421 35.4 October ..................... 1,553 160,830 November .................... 1,276 137,402 December .................... 1,605 (r)190,146 Fourth quarter .............. 4,434 488,378 1,660 237,483 37.4 1999 January ..................... (r)2,212 (r)211,991 February .................... 878 80,134 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. r = revised. Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, February 1998 and February 1999 Initial claimants for Mass layoff events unemployment insurance Industry February February February February 1998 1999 1998 1999 Total(1) ............................................ 970 878 81,455 80,134 Total, private ........................................... 951 851 78,623 78,099 Agriculture ............................................ 176 111 10,232 6,403 Nonagriculture ......................................... 762 723 67,078 70,447 Manufacturing ........................................ 308 278 30,530 27,805 Durable goods ...................................... 143 151 17,316 16,200 Lumber and wood products ......................... 23 24 1,847 2,682 Furniture and fixtures ........................... 7 7 457 399 Stone, clay, and glass products .................. 15 6 1,050 463 Primary metal industries ......................... 7 11 527 2,578 Fabricated metal products ........................ 14 11 1,158 882 Industrial machinery and equipment ............... 19 26 1,228 1,860 Electronic and other electrical equipment ........ 25 29 2,455 2,274 Transportation equipment ......................... 26 25 8,104 4,174 Instruments and related products ................. 4 9 299 701 Miscellaneous manufacturing industries ........... 3 3 191 187 Nondurable goods ................................... 165 127 13,214 11,605 Food and kindred products ........................ 67 55 5,377 4,789 Tobacco products ................................. 3 6 222 832 Textile mill products ............................ 16 13 1,352 1,111 Apparel and other textile products ............... 35 21 2,797 2,096 Paper and allied products ........................ 12 6 899 825 Printing and publishing .......................... 14 14 1,030 1,027 Chemicals and allied products .................... 4 4 293 336 Petroleum and coal products ...................... - - - - Rubber and miscellaneous plastics products ....... 11 5 956 417 Leather and leather products ..................... 3 3 288 172 Nonmanufacturing ..................................... 454 445 36,548 42,642 Mining ............................................. 9 13 698 1,257 Construction ....................................... 161 96 9,209 6,251 Transportation and public utilities ................ 42 26 4,439 2,234 Wholesale and retail trade ......................... 82 92 7,187 7,695 Wholesale trade ................................. 17 26 1,196 1,834 Retail trade .................................... 65 66 5,991 5,861 Finance, insurance, and real estate ................ 15 18 1,117 1,427 Services ........................................... 145 200 13,898 23,778 Not identified ......................................... 13 17 1,313 1,249 Government ............................................... 19 27 2,832 2,035 Federal ................................................ 3 6 238 628 State .................................................. 4 10 749 732 Local .................................................. 12 11 1,845 675 1 Data were reported by all states and the District of Columbia. Dash represents zero. Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division, February 1998 and February 1999 Mass layoff events Initial claimants for unemployment insurance Census region and division February February February February 1998 1999 1998 1999 United States .......... 970 878 81,455 80,134 Northeast .................... 154 108 14,026 10,879 New England ............... 31 26 3,684 2,672 Middle Atlantic ........... 123 82 10,342 8,207 South ........................ 157 197 16,465 17,291 South Atlantic.............. 86 83 10,366 7,176 East South Central.......... 27 37 2,439 3,494 West South Central.......... 44 77 3,660 6,621 Midwest ...................... 132 144 14,724 14,480 East North Central.......... 99 113 11,888 10,412 West North Central.......... 33 31 2,836 4,068 West ......................... 527 429 36,240 37,484 Mountain.................... 27 28 2,712 2,384 Pacific..................... 500 401 33,528 35,100 NOTE: The States (including the District of Columbia) that comprise the various 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, February 1998 and February 1999 Initial claimants for Mass layoff events unemployment insurance State February February February February 1998 1999 1998 1999 Total(1) ...................... 970 878 81,455 80,134 Alabama .......................... 9 8 1,251 1,007 Alaska ........................... ( 2 ) - ( 2 ) - Arizona .......................... 8 ( 2 ) 545 ( 2 ) Arkansas ......................... ( 2 ) 3 ( 2 ) 281 California ....................... 472 376 31,407 33,052 Colorado ......................... 4 4 902 311 Connecticut ...................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Delaware ......................... 3 - 1,471 - District of Columbia ............. - ( 2 ) - ( 2 ) Florida .......................... 32 37 2,043 2,826 Georgia .......................... 8 10 555 730 Hawaii ........................... ( 2 ) 3 ( 2 ) 194 Idaho ............................ 5 8 328 781 Illinois ......................... 28 16 2,764 1,240 Indiana .......................... 11 10 862 1,058 Iowa ............................. 6 6 613 402 Kansas ........................... 3 ( 2 ) 180 ( 2 ) Kentucky ......................... ( 2 ) 8 ( 2 ) 824 Louisiana ........................ 9 7 632 465 Maine ............................ 10 7 706 722 Maryland ......................... 11 ( 2 ) 2,917 ( 2 ) Massachusetts .................... 12 14 1,519 1,554 Michigan ......................... 12 26 3,013 2,648 Minnesota ........................ 12 5 1,160 502 Mississippi ...................... 9 5 654 529 Missouri ......................... 11 16 800 2,904 Montana .......................... ( 2 ) - ( 2 ) - Nebraska ......................... - ( 2 ) - ( 2 ) Nevada ........................... 7 9 762 709 New Hampshire .................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) New Jersey ....................... 18 14 2,131 1,455 New Mexico ....................... ( 2 ) 4 ( 2 ) 260 New York ......................... 15 7 867 1,521 North Carolina ................... 12 12 1,076 1,311 North Dakota ..................... - ( 2 ) - ( 2 ) Ohio ............................. 18 22 1,569 1,873 Oklahoma ......................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Oregon ........................... 16 14 1,251 1,251 Pennsylvania ..................... 90 61 7,344 5,231 Rhode Island ..................... 7 ( 2 ) 1,344 ( 2 ) South Carolina ................... 9 9 918 691 South Dakota ..................... ( 2 ) - ( 2 ) - Tennessee ........................ 8 16 475 1,134 Texas ............................ 31 66 2,698 5,819 Utah ............................. - ( 2 ) - ( 2 ) Vermont .......................... - - - - Virginia ......................... 11 12 1,386 1,350 Washington ....................... 9 8 609 603 West Virginia .................... - - - - Wisconsin ........................ 30 39 3,680 3,593 Wyoming .......................... - - - - Puerto Rico ...................... 10 14 881 1,201 1 Data were reported by all states and the District of Columbia 2 Data do not meet BLS or state agency disclosure standards. Dash represents zero.