Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6392 USDL 99-314 For release: 10:00 A.M. EST Media contact: 606-5902 Thursday, November 4, 1999 MASS LAYOFFS IN SEPTEMBER 1999 In September 1999, there were 717 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 75,288. Although the number of layoff events was higher in September 1999 than in September 1998, the number of initial claimants for unemployment insurance was lower. (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 September 1999, manufacturing industries accounted for 29 percent of all mass layoff events and 38 percent of all initial claims filed. Manufacturing industries that had the highest numbers of initial claimants were transportation equipment (5,660), primarily in motor vehicles and car bodies; industrial machinery and equipment (5,422), mostly in farm machinery and equipment and in construction machinery; and electronic and other electrical equipment (4,313), particularly in household refrigerators and freezers. (See table 2.) Services accounted for 25 percent of all mass layoff events and 28 percent of all initial claims filed. The layoffs were predominantly in business services (particularly in help supply services) and motion pictures. Layoffs in these two industries, however, are more likely than those in most other industries to last less than 30 days. Retail trade accounted for 9 percent of all layoffs and 7 percent of initial claimants during the month, largely in eating and drinking places. Construction accounted for 9 percent of layoff events and 6 percent of initial claims during the month, largely in special trade contractors. Agriculture accounted for 13 percent of all layoff events and 9 percent of initial claimants during the month, concentrated primarily in agricultural services. Compared with September 1998, the largest decrease in initial claims occurred in transportation by air (-22,699), due to the end of labor disputes in the airline industry. The largest over-the-year increases in initial claims occurred in transportation equipment (+3,372), followed by agricultural services (+2,791). - 2 - Geographic Distribution In September, the number of initial claims due to mass layoffs was higher in the West (38,343) than in the other three regions combined. (See table 3.) Job losses in motion pictures accounted for 20 percent of the claims in the West. The fewest number of mass layoff initial claims was reported in the Northeast region (8,164). Over-the-year decreases in mass layoff-related initial claims were reported in the Midwest, South, and Northeast regions, with the largest decrease in the Midwest (-10,478). Among the divisions, lower levels of initial claims over the year were reported mainly in the West North Central and East South Central, with sharply lower numbers of layoffs in transporta- tion by air. Among the 50 states and the District of Columbia reporting data for September, California had the largest number of initial claims filed in mass layoff events (35,149), primarily in motion pictures and business services, followed by Texas (4,471), Pennsylvania (4,224), Ohio (3,693), and South Carolina (3,687). These five states accounted for 74 percent of all layoff events and 68 percent of all initial claimants for unemployment insurance. (See table 4.) From September 1998 to September 1999, Minnesota had the largest over- the-year decrease in initial claims (-9,298), followed by Michigan (-6,078). California reported the largest over-the-year increase in initial claims (+10,431), mostly in agricultural services. 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 September 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(r) ..................... 1,741 221,334 August ...................... 698 75,691 September ................... 717 75,288 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. r = revised. p = preliminary. Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, September 1998 and September 1999 Initial claimants for Mass layoff events unemployment insurance Industry September September September September 1998 1999 1998 1999 Total(1) ....................................... 637 717 79,629 75,288 Total, private ...................................... 613 681 77,592 71,307 Agriculture ....................................... 47 90 2,530 6,432 Nonagriculture .................................... 559 581 74,582 64,016 Manufacturing ................................... 246 205 25,055 28,254 Durable goods ................................. 139 114 14,218 20,055 Lumber and wood products .................... 5 6 321 430 Furniture and fixtures ...................... 4 7 220 746 Stone, clay, and glass products ............. 5 3 626 156 Primary metal industries .................... 13 9 1,036 1,989 Fabricated metal products ................... 10 6 702 361 Industrial machinery and equipment .......... 29 29 3,840 5,422 Electronic and other electrical equipment ... 34 18 3,769 4,313 Transportation equipment .................... 19 23 2,288 5,660 Instruments and related products ............ 12 5 849 393 Miscellaneous manufacturing industries ...... 8 8 567 585 Nondurable goods .............................. 107 91 10,837 8,199 Food and kindred products ................... 32 33 3,187 2,892 Tobacco products ............................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Textile mill products ....................... 13 8 1,593 912 Apparel and other textile products .......... 27 32 2,305 2,642 Paper and allied products ................... 13 6 1,310 690 Printing and publishing ..................... 6 ( 2 ) 515 ( 2 ) Chemicals and allied products ............... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Petroleum and coal products ................. - ( 2 ) - ( 2 ) Rubber and miscellaneous plastics products .. 6 6 606 561 Leather and leather products ................ ( 2 ) - ( 2 ) - Nonmanufacturing ................................ 313 376 49,527 35,762 Mining ........................................ 7 ( 2 ) 848 ( 2 ) Construction .................................. 35 62 2,046 4,158 Transportation and public utilities ........... 53 28 25,047 2,161 Wholesale and retail trade .................... 68 79 4,985 6,482 Wholesale trade ............................ 17 13 1,065 1,196 Retail trade ............................... 51 66 3,920 5,286 Finance, insurance, and real estate ........... 12 ( 2 ) 938 ( 2 ) Services ...................................... 138 181 15,663 20,882 Not identified .................................... 7 10 480 859 Government .......................................... 24 36 2,037 3,981 Federal ........................................... 4 6 470 1,467 State ............................................. 7 11 501 1,047 Local ............................................. 13 19 1,066 1,467 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, September 1998 and September 1999 Mass layoff events Initial claimants for unemployment insurance Census region and division September September September September 1998 1999 1998 1999 United States(1) ......... 637 717 79,629 75,288 Northeast ........................ 93 91 8,818 8,164 New England .................. 13 12 1,700 1,081 Middle Atlantic .............. 80 79 7,118 7,083 South ............................ 139 128 14,772 12,777 South Atlantic ............... 74 66 7,143 7,195 East South Central ........... 22 10 3,719 666 West South Central ........... 43 52 3,910 4,916 Midwest .......................... 106 81 26,482 16,004 East North Central ........... 77 62 13,801 12,174 West North Central ........... 29 19 12,681 3,830 West ............................. 299 417 29,557 38,343 Mountain ..................... 13 7 970 932 Pacific ...................... 286 410 28,587 37,411 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, September 1998 and September 1999 Initial claimants for Mass layoff events unemployment insurance State September September September September 1998 1999 1998 1999 Total(1) ...................... 637 717 79,629 75,288 Alabama .......................... 6 4 668 264 Alaska ........................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Arizona .......................... 3 - 250 - Arkansas ......................... 6 ( 2 ) 712 ( 2 ) California ....................... 257 389 24,718 35,149 Colorado ......................... - - - - Connecticut ...................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Delaware ......................... - - - - District of Columbia ............. - - - - Florida .......................... 38 18 2,679 1,137 Georgia .......................... 7 9 1,658 730 Hawaii ........................... 6 3 938 246 Idaho ............................ ( 2 ) - ( 2 ) - Illinois ......................... 22 17 3,267 3,072 Indiana .......................... 4 7 453 3,086 Iowa ............................. 7 3 880 368 Kansas ........................... 4 ( 2 ) 355 ( 2 ) Kentucky ......................... 4 3 284 233 Louisiana ........................ 10 3 787 207 Maine ............................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) Maryland ......................... 4 ( 2 ) 352 ( 2 ) Massachusetts .................... 9 9 1,442 835 Michigan ......................... 17 10 7,042 964 Minnesota ........................ 5 7 10,028 730 Mississippi ...................... 5 ( 2 ) 375 ( 2 ) Missouri ......................... 13 6 1,418 2,204 Montana .......................... ( 2 ) - ( 2 ) - Nebraska ......................... - - - - Nevada ........................... 4 6 268 648 New Hampshire .................... - - - - New Jersey ....................... 17 10 1,503 1,013 New Mexico ....................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) New York ......................... 20 20 1,988 1,846 North Carolina ................... 3 4 297 452 North Dakota ..................... - ( 2 ) - ( 2 ) Ohio ............................. 15 16 1,482 3,693 Oklahoma ......................... 3 - 280 - Oregon ........................... 13 10 1,248 845 Pennsylvania ..................... 43 49 3,627 4,224 Rhode Island ..................... ( 2 ) - ( 2 ) - South Carolina ................... 17 26 1,741 3,687 South Dakota ..................... - - - - Tennessee ........................ 7 ( 2 ) 2,392 ( 2 ) Texas ............................ 24 47 2,131 4,471 Utah ............................. ( 2 ) - ( 2 ) - Vermont .......................... - - - - Virginia ......................... 4 7 334 969 Washington ....................... 9 6 1,609 1,002 West Virginia .................... ( 2 ) - ( 2 ) - Wisconsin ........................ 19 12 1,557 1,359 Wyoming .......................... - - - - Puerto Rico ...................... 6 10 478 903 1 See footnote 1, table 2. 2 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero.