Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 98-350 For release: 10:00 A.M. EDT Media contact: 606-5902 Thursday, August 20, 1998 MASS LAYOFFS IN MAY 1998 In May 1998, there were 1,180 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 107,952. Both the number of layoff events and initial claimants for unemployment insurance were higher than in May 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 May 1998, manufacturing industries accounted for 31 percent of all mass layoff events and 35 percent of all initial claims filed. Manufacturing industries with the largest numbers of initial claimants were food products (8,409), primarily frozen fruits and vegetables; apparel (6,346), mostly in men's and boys' trousers and slacks; and electronic equipment (4,900), particularly in semiconductors. (See table 3.) In nonmanufacturing industries, services accounted for 26 percent of all mass layoff events and 25 percent of all initial claims filed, primarily in business services (mostly help supply) and social services (largely child day care services). Layoffs in help supply services are more likely than those in other industries to last less than 30 days. Retail trade contributed 12 percent to layoff events and 13 percent to initial claims during the month, largely in eating and drinking establishments. - 2 - Compared with May 1997, the largest increases in initial claims occurred in apparel (2,598), textile mill products (1,526), engineering and management services (1,295), and amusement and recreation services (1,125). The largest over-the-year decreases in initial claims occurred in transportation equipment (-3,261) and local transport (-1,619). State Distribution Among the 50 states and the District of Columbia reporting for May, California had the largest number of initial claims filed in mass layoff events (26,422), followed by Texas (10,710) and Pennsylvania (9,353). These three states accounted for 46 percent of all layoff events and 43 percent of all initial claims. (See table 2.) From May 1997 to May 1998, Pennsylvania reported the largest over-the- year rise in initial claims (4,058), primarily in eating and drinking places, followed by South Carolina (2,410), largely in textile mill products. New York had the largest over-the-year decline in initial claims (-5,242), mostly in local transit. 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 May 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 ................................ 1,030 109,572 May .................................. 942 80,366 June ................................. 924 80,232 Second quarter ....................... 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 1,020 200,396 34.4 October .............................. 1,289 131,850 November ............................. 1,433 130,774 December ............................. 1,824 204,123 Fourth quarter ....................... 4,546 466,747 1,915 383,816 42.1 1997 January .............................. 2,139 212,860 February ............................. 755 63,352 March ................................ 783 84,069 First quarter ........................ 3,677 360,281 1,317 253,385 35.8 April ................................ 1,269 152,168 May .................................. 1,152 101,476 June ................................. 1,238 121,256 Second quarter ....................... 3,659 374,900 1,574 318,725 43.0 July ................................. 1,899 237,410 August ............................... 973 99,513 September ............................ 548 59,062 Third quarter ........................ 3,420 395,985 1,077 215,672 31.5 October .............................. 1,414 139,297 November ............................. 1,156 100,051 December ............................. 1,634 172,029 Fourth quarter ....................... 4,204 411,377 1,677 304,173 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 May .................................. 1,180 107,952 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. Table 2. State distribution: Mass layoff events, and initial claimants for unemployment insurance, May 1997 and May 1998 Initial claimants for Mass layoff events unemployment insurance State May May May May 1997 1998 1997 1998 Total( 1 ) ........................... 1,152 1,180 101,476 107,952 Alabama ................................. 5 4 354 490 Alaska .................................. 3 3 200 207 Arizona ................................. 13 8 1,538 941 Arkansas ................................ 19 13 1,800 1,223 California .............................. 362 364 26,288 26,422 Colorado ................................ 4 7 507 561 Connecticut ............................. ( 2 ) 3 ( 2 ) 312 Delaware ................................ ( 2 ) 3 ( 2 ) 164 District of Columbia .................... - ( 2 ) - ( 2 ) Florida ................................. 60 76 4,037 4,972 Georgia ................................. 10 11 711 767 Hawaii .................................. 3 5 237 538 Idaho ................................... 10 12 891 1,097 Illinois ................................ 54 40 5,699 4,965 Indiana ................................. 20 16 1,593 1,370 Iowa .................................... 8 - 632 - Kansas .................................. 6 5 387 346 Kentucky ................................ 6 5 457 512 Louisiana ............................... 14 13 989 1,147 Maine ................................... 6 7 473 790 Maryland ................................ 9 ( 2 ) 824 ( 2 ) Massachusetts ........................... 15 13 1,441 996 Michigan ................................ 23 17 1,961 2,037 Minnesota ............................... 11 10 873 967 Mississippi ............................. 5 3 571 225 Missouri ................................ 43 38 3,770 4,664 Montana ................................. 3 4 169 296 Nebraska ................................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nevada .................................. 5 6 408 429 New Hampshire ........................... 3 3 182 258 New Jersey .............................. 21 39 2,389 3,816 New Mexico .............................. 5 9 425 506 New York ................................ 84 36 8,550 3,308 North Carolina .......................... 16 12 1,326 1,250 North Dakota ............................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Ohio .................................... 43 51 3,895 5,125 Oklahoma ................................ 4 3 521 588 Oregon .................................. 16 24 1,745 2,216 Pennsylvania ............................ 64 101 5,295 9,353 Rhode Island ............................ 3 5 236 352 South Carolina .......................... 12 22 1,211 3,621 South Dakota ............................ - - - - Tennessee ............................... 4 10 303 1,014 Texas ................................... 81 83 10,015 10,710 Utah .................................... ( 2 ) 3 ( 2 ) 543 Vermont ................................. - ( 2 ) - ( 2 ) Virginia ................................ 19 20 2,525 1,832 Washington .............................. 11 13 830 947 West Virginia ........................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Wisconsin ............................... 40 52 4,473 5,068 Wyoming ................................. - - - - Puerto Rico ............................. 9 6 863 724 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 May 1997 due to the inclusion of new data for Louisiana and Oklahoma. Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, May 1997 and May 1998 Initial claimants for Mass layoff events unemployment insurance Industry May May May May 1997 1998 1997 1998 Total( 1 )...................................... 1,152 1,180 101,476 107,952 Total, private ...................................... 1,103 1,130 96,495 103,437 Agriculture ....................................... 61 85 4,085 5,407 Nonagriculture .................................... 1,022 1,018 90,503 95,429 Manufacturing ................................... 354 365 35,214 38,247 Durable goods ................................. 158 149 17,504 15,545 Lumber and wood products .................... 8 13 673 877 Furniture and fixtures ...................... 3 12 195 1,171 Stone, clay, and glass products ............. 6 10 554 950 Primary metal industries .................... 12 13 886 1,314 Fabricated metal products ................... 18 14 1,592 1,439 Industrial machinery and equipment .......... 21 18 1,787 1,570 Electronic and other electrical equipment ... 27 37 4,488 4,900 Transportation equipment .................... 41 19 5,461 2,200 Instruments and related products ............ 12 8 968 705 Miscellaneous manufacturing industries ...... 10 5 900 419 Nondurable goods .............................. 196 216 17,710 22,702 Food and kindred products ................... 87 89 7,623 8,409 Tobacco products ............................ - ( 2 ) - ( 2 ) Textile mill products ....................... 19 24 2,181 3,707 Apparel and other textile products .......... 41 55 3,748 6,346 Paper and allied products ................... 7 10 560 719 Printing and publishing ..................... 20 21 1,330 1,663 Chemicals and allied products ............... 5 ( 2 ) 527 ( 2 ) Petroleum and coal products ................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) Rubber and miscellaneous plastics products .. 12 11 1,326 1,279 Leather and leather products ................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nonmanufacturing ................................ 668 653 55,289 57,182 Mining ........................................ 4 6 320 586 Construction .................................. 114 112 8,431 8,512 Transportation and public utilities ........... 55 33 4,453 2,804 Wholesale and retail trade .................... 174 182 15,386 17,014 Wholesale trade ............................ 24 36 1,918 2,694 Retail trade ............................... 150 146 13,468 14,320 Finance, insurance, and real estate ........... 23 19 1,826 1,329 Services ...................................... 298 301 24,873 26,937 Not identified .................................... 20 27 1,907 2,601 Government .......................................... 49 50 4,981 4,515 Federal ........................................... 12 7 1,366 1,192 State ............................................. 14 17 1,063 1,716 Local ............................................. 23 26 2,552 1,607 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 May 1997 due to the inclusion of new data for Louisiana and Oklahoma. Dash represents zero.