Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 98-245 For release: 10:00 A.M. EDT Media contact: 606-5902 Wednesday, June 17, 1998 MASS LAYOFFS IN MARCH 1998 In March 1998, there were 762 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 78,210 persons. Both the number of layoff events and initial claimants for unemployment insurance were somewhat lower than in March 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. 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, 4,204 layoff events involving 411,377 initial claimants for unemployment insurance occurred in October, November, and December of 1997 combined. The fourth-quarter 1997 figures for mass layoffs lasting more than 30 days, however, were 1,637 events and 226,722 claimants. Thirty- nine percent of all mass layoffs in the October-December 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 has varied from about 29 to 47 percent. Industry Distribution In March 1998, manufacturing industries accounted for 38 percent of all mass layoff events and 40 percent of all initial claims filed. (See table 3.) Manufacturing industries that had the largest numbers of initial claimants were food and kindred products (6,144), mostly in canned and frozen fruits and vegetables, and apparel and other textile products (4,298), largely in men's and boys' trousers and slacks. In nonmanufacturing industries, services accounted for 19 percent of all layoff events and 24 percent of all initial claims (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 separations during the month, largely in eating and drinking establishments. Compared with March 1997, the largest over-the-year decreases in initial claims occurred in transportation equipment (-6,558), primarily in motor vehicle and car bodies manufacturing, and in local and interurban passenger transit (-2,877). The largest over-the-year increases in initial claims occurred in apparel and other textile products (1,900) and in motion pictures (1,555). State Distribution Among the 50 states and the District of Columbia, California had the largest number of initial claims (31,341), followed by Texas (6,766). These two states accounted for 45 percent of all events and 49 percent of all initial claims. From March 1997 to March 1998, Illinois reported the largest over-the- year decrease in initial claimants (-3,229), followed by Louisiana (-2,894), and Maryland (-2,738). Texas had the largest over-the-year increase (2,801). 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, October 1996 to March 1998 Extended mass layoffs Date Total mass layoffs lasting more than 30 days Event realization Events Initial Events Initial rate (1) claimants claimants 1996 October ...................... 1,289 131,850 November ..................... 1,433 130,774 December ..................... 1,824 204,123 Fourth quarter ............... 4,546 466,747 1,913 375,338 42.1 1997 January ...................... 2,139 212,860 February ..................... 755 63,352 March ........................ 783 84,069 First quarter ................ 3,677 360,281 1,317 245,610 35.8 April ........................ 1,269 152,168 May .......................... 1,152 101,476 June ......................... 1,238 121,256 Second quarter ............... 3,659 374,900 1,574 306,750 43.0 July ......................... 1,899 237,410 August ....................... 973 99,513 September .................... 548 59,062 Third quarter ................ 3,420 395,985 1,078 208,037 31.5 October ...................... 1,414 139,297 November ..................... 1,156 100,051 December ..................... 1,634 172,029 Fourth quarter ............... 4,204 411,377 1,637 226,722 38.9 1998 January ...................... 2,360 255,203 February ..................... (r)970 (r)81,455 March ........................ 762 78,210 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, March 1997 and March 1998 Initial claimants for Mass layoff events unemployment insurance State March March March March 1997 1998 1997 1998 Total( 1 ) ................. (r)783 762 (r)84,069 78,210 Alabama ..................... ( 2 ) 7 ( 2 ) 475 Alaska ...................... 3 ( 2 ) 218 ( 2 ) Arizona ..................... 13 3 955 499 Arkansas .................... 5 ( 2 ) 1,272 ( 2 ) California .................. 285 310 29,668 31,341 Colorado .................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Connecticut ................. - ( 2 ) - ( 2 ) Delaware .................... ( 2 ) - ( 2 ) - District of Columbia ........ - - - - Florida ..................... 31 27 2,146 2,733 Georgia ..................... 8 11 825 990 Hawaii ...................... 5 5 378 402 Idaho ....................... 10 4 1,025 199 Illinois .................... 32 20 5,321 2,092 Indiana ..................... 12 12 1,599 1,028 Iowa ........................ 7 10 1,216 1,604 Kansas ...................... 4 5 269 333 Kentucky .................... 3 5 177 382 Louisiana ................... (r)16 3 (r)3,120 226 Maine ....................... 3 ( 2 ) 284 ( 2 ) Maryland .................... 7 - 2,738 - Massachusetts ............... 7 13 551 905 Michigan .................... 11 9 787 831 Minnesota ................... 9 7 743 718 Mississippi ................. ( 2 ) 7 ( 2 ) 393 Missouri .................... 24 16 2,511 3,196 Montana ..................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nebraska .................... - ( 2 ) - ( 2 ) Nevada ...................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) New Hampshire ............... - - - - New Jersey .................. 23 21 2,568 1,501 New Mexico .................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) New York .................... (r)24 16 (r)1853 1,369 North Carolina .............. 12 7 1,109 652 North Dakota ................ - - - - Ohio ........................ 14 22 1,422 1,824 Oklahoma .................... (r)4 4 (r)329 404 Oregon ...................... 22 28 2,172 2,685 Pennsylvania ................ 50 50 4,591 4,827 Rhode Island ................ ( 2 ) 3 ( 2 ) 272 South Carolina .............. 16 9 2,208 1,059 South Dakota ................ - - - - Tennessee ................... 3 12 175 1,177 Texas ....................... 42 32 3,965 6,766 Utah ........................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Vermont ..................... - - - - Virginia .................... 20 14 1,834 1,196 Washington .................. 4 11 374 832 West Virginia ............... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Wisconsin ................... 39 44 4,634 4,190 Wyoming ..................... - - - - Puerto Rico ................. 6 5 553 343 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, March 1997 and March 1998 Initial claimants for Mass layoff events unemployment insurance Industry March March March March 1997 1998 1997 1998 Total( 1 ) .................................... 783 762 84,069 78,210 Total, private ...................................... 764 749 82,923 77,220 Agriculture ....................................... 84 74 6,030 5,878 Nonagriculture .................................... 668 663 75,898 70,167 Manufacturing ................................... 266 287 33,204 31,083 Durable goods ................................. 115 139 17,639 14,592 Lumber and wood products .................... 19 23 2,017 1,755 Furniture and fixtures ...................... 7 8 646 1,092 Stone, clay, and glass products ............. 6 13 391 994 Primary metal industries .................... 13 9 1,312 1,009 Fabricated metal products ................... 11 17 814 1,360 Industrial machinery and equipment .......... 11 18 900 1,987 Electronic and other electrical equipment ... 14 26 1,331 2,689 Transportation equipment .................... 24 15 9,442 2,884 Instruments and related products ............ 6 5 383 337 Miscellaneous manufacturing industries ...... 4 5 403 485 Nondurable goods .............................. 151 148 15,565 16,491 Food and kindred products ................... 63 64 7,464 6,114 Tobacco products ............................ 4 5 535 777 Textile mill products ....................... 20 16 2,301 2,076 Apparel and other textile products .......... 29 26 2,398 4,298 Paper and allied products ................... 14 5 1,442 402 Printing and publishing ..................... 8 12 546 809 Chemicals and allied products ............... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Petroleum and coal products ................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) Rubber and miscellaneous plastics products .. ( 2 ) 13 ( 2 ) 924 Leather and leather products ................ 5 4 325 885 Nonmanufacturing ................................ 402 376 42,694 39,084 Mining ........................................ 4 5 261 404 Construction .................................. 79 72 5,198 4,873 Transportation and public utilities ........... 45 37 5,518 4,014 Wholesale and retail trade .................... 115 104 12,474 10,655 Wholesale trade ............................ 13 15 937 1,034 Retail trade ............................... 102 89 11,537 9,621 Finance, insurance, and real estate ........... 12 11 1,011 719 Services ...................................... 147 147 18,232 18,419 Not identified .................................... 12 12 995 1,175 Government .......................................... 19 13 1,146 990 Federal ........................................... 1 1 72 57 State ............................................. 9 3 565 227 Local ............................................. 9 9 509 706 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 March 1997 due to the inclusion of new data for Louisiana, New York, and Oklahoma.