Internet address: http://stats.bls.gov:80/newsrels.htm Technical information: (202) 606-6396 USDL 97-232 Media contact: 606-5902 For release: 10:00 A.M. EDT Thursday, July 17, 1997 MASS LAYOFFS IN APRIL 1997 In April 1997, there were 1,009 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 the number of workers involved totaled 121,617 persons. The number of layoff events was about the same, but the level of claimants for unemployment insurance was higher, than in April 1996. (See table 1.) The monthly series in this release covers mass layoffs of 50 or more workers beginning in a given month, regardless of duration. Information on the length of the layoff is obtained later for the quarterly release, which includes only mass layoffs lasting more than 30 days (referred to as "extended mass layoffs"), along with more information on the establishment classification and location 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 three months in a quarter will be higher than the quarterly figure for mass layoffs of more than 30 days. For example, the sum of all mass layoffs in January, February, and March of 1997 was 3,463 layoff events involving 341,982 initial claimants for unemployment insurance. The first-quarter 1997 figures for mass layoffs lasting more than 30 days, however, were 993 events and 141,287 claimants. Twenty-nine percent of all mass layoffs in the January-March period lasted for more than a month. In all quarters for which data are available, this ratio of "extended" mass layoffs to all mass layoffs varied from 29 to 46 percent. State Distribution Among the 47 states and the District of Columbia reporting preliminary data for April, those with the largest numbers of initial claims filed in mass layoff events were: California 56,401 Wisconsin 7,864 Ohio 7,420 New Jersey 6,453 Texas 6,245 - 2 - These five states accounted for almost 70 percent of the total number of layoff events and initial claims reported. California alone accounted for 47 percent of the initial claims and 49 percent of the events. (See table 2.) Layoffs in this group of states were concentrated in motion pictures (mainly in motion picture and video production), business services (mostly in help supply), transportation equipment manufacturing (largely in motor vehicles and car bodies), and food processing (especially canned fruits and vegetables). From April 1996 to April 1997, California reported the largest over- the-year rise in initial claims stemming from mass layoff events, primarily in motion pictures and business services. Ohio reported the sharpest decline in initial claims. States with the largest over-the-year changes in initial claims were: Increases Decreases California 45,111 Ohio -11,597 New Jersey 4,057 Texas -2,683 Indiana 2,622 South Carolina -2,396 Missouri 2,237 Washington -2,150 Florida 1,770 Iowa -1,402 Industry Distribution In April 1997, manufacturing industries accounted for one-third of all initial claims filed and over one-fourth of all mass layoff events. (See table 3.) Within manufacturing, more initial claims were filed in durable goods industries than in nondurable goods industries. Manufacturing industries which had the largest numbers of initial claimants were: Transportation equipment 13,082 Food and kindred products 7,838 Apparel and other textile products 3,141 Industrial machinery and equipment 2,517 Outside of manufacturing, services accounted for 41 percent of the layoff events and 51 percent of initial claims (primarily in motion pictures). Retail trade (mostly department stores and eating and drinking places) contributed an additional 19 percent to layoff events and 18 percent to initial claims. Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were: Motion pictures 16,391 Business services 14,538 Agricultural services 5,489 General merchandise stores 4,721 - 3 - Compared with April 1996, the largest changes in initial claims occurred in the following industries: Increases Motion pictures 16,001 Business services 8,645 Agricultural services 2,695 Decreases Transportation equipment -4,270 Textile mill products -3,041 Local and interurban passenger transit -2,974 Technical Note The Mass Layoff Statistics (MLS) program is a federal-state program which 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. Monthly reports from the MLS program began with data for September 1996. The program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Previously, however, monthly layoff statistics were not published. 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 1996 to April 1997 Extended mass layoffs Event Total mass layoffs lasting more than 30 days realization rate ( 1 ) Date Initial Initial Events claimants Events claimants 1996 January...................... 1,666 167,834 February..................... 918 74,984 March........................ 975 121,046 First quarter............ 3,559 363,864 1354 r216,257 38.0 April........................ 1,010 110,873 May.......................... 913 78,045 June......................... 893 77,287 Second quarter............ 2,816 266,205 1307 r192,577 46.4 July......................... 1,503 189,096 August....................... 869 76,462 September.................... 506 41,646 Third quarter............ 2,878 307,204 985 r181,083 34.2 October...................... 1,277 131,010 November..................... 1,402 126,795 December..................... 1,801 201,483 Fourth quarter ( 2 )..... 4,480 459,288 r1,841 r321,235 r41.1 1997 January ( 3 )................ r1,998 r200,432 February ( 3 )............... r718 r60,255 March ( 3 ).................. r747 r81,295 First quarter ( 4 )...... p3,463 p341,982 p993 p141,287 p29.1 April ( 5 ).................. p1,009 p121,617 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. 2 Data for layoffs lasting more than 30 days were reported by the District of Columbia and all states, except New York. 3 Data for total mass layoffs were reported by the District of Columbia and all states, except New York. 4 For the first quarter of 1997, data on layoffs were reported by employers in the District of Columbia and all states, except Nebraska, New York and Pennsylvania. 5 Data for total mass layoffs were reported by the District of Columbia and all states, except Michigan, New York and Pennsylvania. p = preliminary. r = revised. Table 2. State distribution: Mass layoff events and initial claims for unemployment insurance, April 1996 and April 1997 Mass layoff events Initial claimants for unemployment insurance State April April April April 1996 1997 1996 1997 Total ( 1 ).............. 1,010 1,009 110,873 121,617 Alabama .................... 3 5 241 682 Alaska ..................... ( 2 ) 5 ( 2 ) 375 Arizona .................... 26 20 2,875 2,761 Arkansas ................... 13 ( 2 ) 1,063 ( 2 ) California ................. 193 490 11,290 56,401 Colorado ................... 8 5 618 428 Connecticut ................ 3 7 527 588 Delaware ................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) District of Columbia ....... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Florida .................... 24 44 1,743 3,513 Georgia .................... 10 7 733 603 Hawaii ..................... ( 2 ) 3 ( 2 ) 186 Idaho ...................... 7 4 795 263 Illinois ................... 34 42 4,173 4,182 Indiana .................... 11 19 1,291 3,913 Iowa ....................... 8 - 1,402 - Kansas ..................... 5 8 328 522 Kentucky ................... ( 2 ) 5 ( 2 ) 363 Louisiana .................. 3 5 162 310 Maine ...................... 8 - 824 - Maryland ................... 4 6 289 592 Massachusetts .............. 20 14 2,542 2,171 Michigan ................... 23 ( 1 ) 3,112 ( 1 ) Minnesota .................. 11 13 986 2,096 Mississippi ................ 10 ( 2 ) 754 ( 2 ) Missouri ................... 22 24 2,649 4,886 Montana .................... - 3 - 278 Nebraska ................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nevada ..................... 3 ( 2 ) 185 ( 2 ) New Hampshire .............. ( 2 ) - ( 2 ) - New Jersey ................. 30 43 2,396 6,453 New Mexico ................. - 4 - 353 New York ................... 23 ( 1 ) 4,622 ( 1 ) North Carolina ............. 12 8 1,609 1,679 North Dakota ............... - 7 - 579 Ohio ....................... 48 33 19,017 7,420 Oklahoma ................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Oregon ..................... 11 11 727 806 Pennsylvania ............... 174 ( 1 ) 14,986 ( 1 ) Rhode Island ............... 10 3 1,028 221 South Carolina ............. 29 14 4,157 1,761 South Dakota ............... - - - - Tennessee .................. 4 4 510 487 Texas ...................... 78 51 8,928 6,245 Utah ....................... - ( 2 ) - ( 2 ) Vermont ................... 9 - 852 - Virginia ................... 23 15 2,387 1,181 Washington ................. 30 5 2,612 462 West Virginia .............. 3 - 284 - Wisconsin .................. 63 71 7,036 7,864 Wyoming .................... - - - - Puerto Rico ................ 7 17 638 1,979 1 For April 1997, data were reported by the District of Columbia and all states, except Michigan, New York and Pennsvlvania. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claims for unemployment insurance, April 1996 and April 1997 Industry Mass layoff events Initial claimants unemployment insurance April April April April 1996 1997 1996 1997 Total ( 1 ).................................. 1,010 1,009 110,873 121,617 Total, private........................................ 992 955 109,026 117,775 Agriculture......................................... 50 86 3,902 7,157 Nonagriculture...................................... 897 858 100,578 108,420 Manufacturing..................................... 397 290 57,389 40,430 Durable goods.................................. 179 120 32,457 23,586 Lumber and wood products................... 12 16 773 1,708 Furniture and fixtures..................... 15 11 1,464 1,491 Stone, clay, and glass products............ 8 4 675 289 Primary metal industries................... 23 12 3,115 1,248 Fabricated metal industries................ 19 8 1,601 666 Industrial machinery and equipment......... 28 18 2,735 2,517 Electronic and other electrical equipment.. 38 16 4,000 1,690 Transportation equipment................... 24 25 17,352 13,082 Instruments and related products........... 7 4 412 410 Miscellaneous manufacturing industries..... ( 2 ) 6 ( 2 ) 485 Nondurable goods............................... 218 170 24,932 16,844 Food and kindred products................... 72 92 8,229 7,838 Tobacco products............................ ( 2 ) 4 ( 2 ) 729 Textile mill products....................... 31 9 3,631 590 Apparel and other textile products.......... 38 21 4,433 3,141 Paper and allied products................... 20 9 2,825 1,030 Printing and publishing..................... 16 10 1,611 686 Chemicals and allied products............... 6 ( 2 ) 413 ( 2 ) Petroleum and coal products................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) Rubber and miscellaneous plastics products.. 16 14 2,070 1,094 Leather and leather products................ 13 7 1,158 1,241 Nonmanufacturing................................. 500 568 43,189 67,990 Mining......................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Construction................................... 70 67 5,264 5,121 Transportation and public utilities............ 82 68 10,935 6,804 Wholesale and retail trade..................... 147 150 10,836 15,639 Wholesale trade............................. 26 24 1,730 2,070 Retail trade................................ 121 126 9,106 13,569 Finance, insurance, and real estate............ 12 14 1,137 1,310 Services....................................... 184 267 14,639 38,697 Not identified..................................... 45 11 4,546 2,198 Government............................................ 18 54 1,847 3,842 Federal............................................ 4 12 643 1,039 State.............................................. 6 12 612 904 Local.............................................. 8 30 592 1,899 1 For April 1997, data were reported by the District of Columbia and all states, except Michigan, New York and Pennsylvania. 2 Data do not meet BLS or state agency disclosure standards.