Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6392 USDL 99-299 For release: 10:00 A.M. EDT Media contact: 606-5902 Wednesday, October 20, 1999 MASS LAYOFFS IN AUGUST 1999 In August 1999, there were 698 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 75,691. Both the number of layoff events and the number of initial claimants for unemployment insurance were higher in August 1999 than in August 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 August 1999, manufacturing industries accounted for 35 percent of all mass layoff events and 36 percent of all initial claims filed. Manufacturing industries that had the highest numbers of initial claimants were industrial machinery and equipment (5,330), primarily in construction machinery and in refrigeration and heating equipment; food and kindred products (4,461), mostly in frozen specialties and in candy and other confectionary products; and transportation equipment (3,161), particularly in shipbuilding and repairing. (See table 2.) In nonmanufacturing industries, services accounted for 24 percent of all mass layoff events and 29 percent of all initial claims filed. The layoffs were predominantly in business services (particularly in help supply services). Layoffs in the help supply services industry, however, are more likely than those in most other industries to last less than 30 days. Retail trade accounted for 12 percent of all layoffs and 11 percent of initial claimants during the month, largely in general merchandise stores. Transportation and public utilities accounted for 7 percent of layoff events and 6 percent of initial claims during the month, largely in local and interurban passenger transit. Agriculture accounted for 5 percent of all layoff events and 4 percent of initial claimants during the month, concentrated primarily in the agricultural services. - 2 - Compared with August 1998, the largest increases in initial claims occurred in business services (+10,355), followed by industrial machinery and equipment (+1,784) and motion pictures (+1,742). The largest over-the- year decreases in initial claims occurred in communications (-1,988), followed by electronic and other electrical equipment (-1,321). Geographic Distribution In August, the number of initial claims due to mass layoffs was higher in the West (34,156) than in any other region. (See table 3.) Job losses in business services accounted for 35 percent of these claims in the West. The lowest number of mass layoff initial claims was reported in the Northeast region (9,930). Over-the-year increases in mass layoff-related initial claims were reported by the West and Midwest regions, with the largest increase in the West (+17,723). Higher levels of initial claims this year were reported mainly in the Pacific and East North Central divisions, with sharply higher numbers of layoffs in business services. Among the 50 states and the District of Columbia reporting data for August, California had the largest number of initial claims filed in mass layoff events (30,870), primarily in business services and motion pictures, followed by Texas (4,310), Pennsylvania (3,924), New York (3,923), and Illinois (3,440). These five states accounted for 60 percent of all layoff events and 61 percent of all initial claimants for unemployment insurance. (See table 4.) From August 1998 to August 1999, California reported the largest over- the-year increase in initial claims (+19,491), mostly in business services. Washington had the largest over-the-year decrease in initial claims (-1,239). 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, July 1997 to August 1999 Extended mass layoffs lasting more than 30 days Date Total mass layoffs Event realization rate(1) Initial Initial Events claimants Events claimants 1997 July ...................... 1,899 237,410 August .................... 973 99,513 September ................. 548 59,062 Third Quarter ............. 3,420 395,985 1,082 209,019 31.6 October ................... 1,414 139,297 November .................. 1,156 100,051 December .................. 1,634 172,029 Fourth Quarter ............ 4,204 411,377 1,697 316,035 40.4 1998 January ................... 2,360 255,203 February .................. 970 81,455 March ..................... 762 78,210 First Quarter ............. 4,092 414,868 1,320 247,315 32.3 April ..................... 1,253 132,476 May ....................... 1,180 107,952 June ...................... 1,208 183,590 Second Quarter ............ 3,641 424,018 1,563 402,276 42.9 July ...................... 2,220 286,055 August .................... 617 53,665 September ................. 637 79,629 Third Quarter ............. 3,474 419,349 1,234 256,802 35.5 October ................... 1,557 256,658 November .................. 1,372 162,537 December .................. 1,644 193,072 Fourth Quarter ............ 4,573 612,267 1,736 326,076 38.0 1999 January ................... 2,415 296,404 February .................. 1,076 117,223 March ..................... 850 90,958 First Quarter ............. 4,341 504,585 1,509 255,015 34.8 April ..................... 1,250 161,269 May ....................... 1,033 102,815 June ...................... 1,140 130,951 Second Quarter ............ 3,423 395,035 (p)1,430 (p)192,291 (p)41.8 July ...................... 1,742 221,605 August .................... 698 75,691 1 The event realization rate is the percentage of events lasting more than 30 days. p = preliminary. Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, August 1998 and August 1999 Initial claimants for Mass layoff events unemployment insurance Industry August August August August 1998 1999 1998 1999 Total(1) ............................................ 617 698 53,665 75,691 Total, private ........................................... 599 675 52,329 73,042 Agriculture ............................................ 36 36 1,955 2,668 Nonagriculture ......................................... 555 624 49,749 69,178 Manufacturing ........................................ 254 245 26,481 27,061 Durable goods ...................................... 132 130 14,234 15,721 Lumber and wood products ......................... 9 9 570 684 Furniture and fixtures ........................... 5 4 813 443 Stone, clay, and glass products .................. 3 3 189 231 Primary metal industries ......................... 15 9 1,280 857 Fabricated metal products ........................ 15 12 1,129 1,075 Industrial machinery and equipment ............... 25 27 3,546 5,330 Electronic and other electrical equipment ........ 35 21 4,011 2,690 Transportation equipment ......................... 13 29 1,897 3,161 Instruments and related products ................. 8 10 399 817 Miscellaneous manufacturing industries ........... 4 6 400 433 Nondurable goods ................................... 122 115 12,247 11,340 Food and kindred products ........................ 42 43 3,414 4,461 Tobacco products ................................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) Textile mill products ............................ 16 18 2,468 2,250 Apparel and other textile products ............... 28 27 1,884 2,046 Paper and allied products ........................ 11 8 1,462 800 Printing and publishing .......................... 8 7 681 693 Chemicals and allied products .................... ( 2 ) 3 ( 2 ) 444 Petroleum and coal products ...................... - - - - Rubber and miscellaneous plastics products ....... 9 6 1,184 428 Leather and leather products ..................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nonmanufacturing ..................................... 301 379 23,268 42,117 Mining ............................................. 5 9 409 2,122 Construction ....................................... 45 31 3,027 2,139 Transportation and public utilities ................ 35 46 4,460 4,319 Wholesale and retail trade ......................... 81 103 5,746 9,957 Wholesale trade ................................. 19 21 1,194 1,641 Retail trade .................................... 62 82 4,552 8,316 Finance, insurance, and real estate ................ 8 22 585 1,504 Services ........................................... 127 168 9,041 22,076 Not identified ......................................... 8 15 625 1,196 Government ............................................... 18 23 1,336 2,649 Federal ................................................ 3 9 341 928 State .................................................. 7 3 558 276 Local .................................................. 8 11 437 1,445 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. Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division, August 1998 and August 1999 Mass layoff events Initial claimants for unemployment insurance Census region and division August August August August 1998 1999 1998 1999 United States(1) ........ 617 698 53,665 75,691 Northeast ....................... 113 114 10,881 9,930 New England ................. 17 11 2,102 1,045 Middle Atlantic ............. 96 103 8,779 8,885 South ........................... 183 178 15,674 15,658 South Atlantic .............. 88 91 7,795 8,669 East South Central .......... 16 24 1,010 1,676 West South Central .......... 79 63 6,869 5,313 Midwest ......................... 94 115 10,677 15,947 East North Central .......... 66 85 6,685 11,708 West North Central .......... 28 30 3,992 4,239 West ............................ 227 291 16,433 34,156 Mountain .................... 20 16 1,802 1,259 Pacific ..................... 207 275 14,631 32,897 1 See footnote 1, table 2. 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, August 1998 and August 1999 Initial claimants for Mass layoff events unemployment insurance State August August August August 1998 1999 1998 1999 Total(1) ................ 617 698 53,665 75,691 Alabama .................... 6 10 358 750 Alaska ..................... ( 2 ) - ( 2 ) - Arizona .................... 5 4 435 289 Arkansas ................... 9 4 713 589 California ................. 189 253 11,379 30,870 Colorado ................... 3 - 169 - Connecticut ................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Delaware ................... - ( 2 ) - ( 2 ) District of Columbia ....... - ( 2 ) - ( 2 ) Florida .................... 38 36 3,282 2,440 Georgia .................... 7 11 619 1,318 Hawaii ..................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Idaho ...................... 8 5 925 428 Illinois ................... 15 21 2,017 3,440 Indiana .................... 14 10 1,331 1,110 Iowa ....................... 9 8 1,591 1,204 Kansas ..................... 3 3 261 431 Kentucky ................... ( 2 ) 7 ( 2 ) 465 Louisiana .................. 11 7 812 358 Maine ...................... 5 ( 2 ) 358 ( 2 ) Maryland ................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Massachusetts .............. 6 6 1,014 658 Michigan ................... 4 17 347 2,869 Minnesota .................. 5 ( 2 ) 564 ( 2 ) Mississippi ................ 6 ( 2 ) 336 ( 2 ) Missouri ................... 10 17 1,423 1,936 Montana .................... - - - - Nebraska ................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nevada ..................... ( 2 ) 6 ( 2 ) 475 New Hampshire .............. ( 2 ) - ( 2 ) - New Jersey ................. 14 12 2,016 1,038 New Mexico ................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) New York ................... 30 43 2,563 3,923 North Carolina ............. 13 11 1,076 1,077 North Dakota ............... - - - - Ohio ....................... 18 16 1,584 1,896 Oklahoma ................... 3 ( 2 ) 186 ( 2 ) Oregon ..................... 10 13 1,310 1,320 Pennsylvania ............... 52 48 4,200 3,924 Rhode Island ............... ( 2 ) ( 2 ) ( 2 ) ( 2 ) South Carolina ............. 19 17 1,889 1,814 South Dakota ............... - - - - Tennessee .................. 3 6 259 403 Texas ...................... 56 51 5,158 4,310 Utah ....................... ( 2 ) - ( 2 ) - Vermont .................... ( 2 ) - ( 2 ) - Virginia ................... 6 11 549 1,507 Washington ................. 6 7 1,801 562 West Virginia .............. 3 - 223 - Wisconsin .................. 15 21 1,406 2,393 Wyoming .................... - - - - Puerto Rico ................ 6 11 612 1,009 1 See footnote 1, table 2. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero.