Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 97-397 For release: 10:00 A.M. EST Media contact: 606-5902 Wednesday, November 12, 1997 MASS LAYOFFS IN AUGUST 1997 In August 1997, there were 848 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. (Preliminary figures may not include all states.) Each action involved at least 50 persons from a single establishment, and the number of workers involved totaled 86,688 persons. Although the number of initial claimants was somewhat higher than in August 1996, there were fewer reported layoff events. (See table 1.) August is typically a month of comparatively low unemployment insurance claimant activity, and August layoff events affected less than half the number of workers than did July events. 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, which 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 three months in a quarter will be higher than the quarterly figure for mass layoffs of more than 30 days. For example, 3,639 layoff events involving 372,995 initial claimants for unemployment insurance occurred in April, May, and June of 1997 combined. The second-quarter 1997 figures for mass layoffs lasting more than 30 days, however, were 1,301 events and 177,871 claimants. Thirty-six percent of all mass layoffs in the April-June period lasted for more than a month. In all quarters for which data are available, this proportion of "extended" mass layoffs to all mass layoffs varied from about 34 to 47 percent. (See table 1.) Industry Distribution In August 1997, manufacturing industries accounted for 40 percent of all initial claims filed and 35 percent 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 that had the largest numbers of initial claimants were: Transportation equipment 6,930 Food and kindred products 5,763 Industrial machinery and equipment 4,377 Electronic and other electrical equipment 3,664 - 2 - Within private-sector nonmanufacturing industries (including agriculture), transportation and public utilities (primarily transportation by air) accounted for 37 percent of the initial claims, but only 15 percent of the layoff events. Many of the initial claimants from air transportation were associated with a labor dispute and, based on state unemployment insurance laws, were subsequently disqualified for benefits. Services (mostly business services such as help supply) contributed an additional 30 percent to initial claims and 39 percent to layoff events. It should be noted that layoff events in help supply businesses are more likely than those in other industries to last less than 31 days. Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were transportation by air (13,902), business services (8,458), and local and interurban passenger transit (1,840). Compared with August 1996, the largest changes in initial claims occurred in the following industries: Increases Transportation by air 13,771 Transportation equipment 1,519 Food and kindred products 1,092 Electronic and other electrical equipment 1,016 Heavy construction, excluding building 935 Decreases Health services -3,144 General merchandise stores -1,726 Eating and drinking places -1,204 Business services -1,130 State Distribution Among the 47 states and the District of Columbia reporting preliminary data for August, California had the largest number of initial claims filed in mass layoff events (18,537), followed by Illinois (8,907) and Texas (8,289). These three states accounted for 48 percent of the total number of layoff events and 41 percent of initial claims reported. (At the time these figures were compiled, information for Iowa, Michigan, and Pennsylvania was not available.) California alone accounted for 35 percent of the layoff events and 21 percent of the initial claims. (See table 2.) Layoffs in this group of states were concentrated in business services (largely in help supply) and air transportation (primarily air courier services). From August 1996 to August 1997, Texas reported the largest over-the- year rise in initial claims, primarily in industrial machinery manufacturing and business services. California reported the sharpest decline in initial claims. States with the largest over-the-year changes in initial claims were: Increases Decreases Texas 3,800 California -7,928 Illinois 2,888 New York -5,383 Missouri 2,083 Mississippi -1,408 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 August 1997 Extended mass layoffs Event Date Total mass layoffs lasting more than 30 days realization rate( 1 ) Events Initial Events Initial claimants claimants 1996 April.................. 1,024 109,266 May.................... 930 79,576 June................... 914 79,203 Second quarter..... 2,868 268,045 1,345 200,040 46.9 July................... 1,531 191,955 August................. 912 82,783 September.............. 509 42,132 Third quarter...... 2,952 316,870 1,017 190,692 34.5 October................ 1,289 131,879 November............... 1,429 130,310 December............... 1,811 203,115 Fourth quarter..... 4,529 465,304 1,907 354,868 42.1 1997 January................ 2,098 208,783 February............... 755 63,260 March.................. 771 83,148 First quarter...... 3,624 355,191 1,239 203,959 34.2 April ................. r1,266 r151,958 May ................... r1,143 r100,733 June( 2 ) ............ r1,230 r120,304 Second quarter( p ). r3,639 r372,995 ( 3 )1,301 ( 3 )177,871 r35.8 July( 4 ) ............. r1,695 r205,498 August( 5 ) ........... p848 p86,688 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. 2 Data exclude Iowa. 3 Data for extended layoffs lasting more than 30 days were reported by the District of Columbia and all states, except Indiana, Iowa, Michigan, and Pennsylvania. 4 Data exclude Iowa and Michigan. 5 Data exclude Iowa, Michigan, and Pennsylvania. p = preliminary. r = revised. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, August 1996 and August 1997 Mass layoff events Initial claimants for unemployment insurance State August August August August 1996 1997 1996 1997 Total( 1 ) ...................... r912 848 r82,783 86,688 Alabama ............................ 3 ( 2 ) 425 ( 2 ) Alaska ............................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) Arizona ............................ 3 7 203 839 Arkansas ........................... 7 10 560 841 California ......................... 318 297 26,465 18,537 Colorado ........................... - ( 2 ) - ( 2 ) Connecticut ........................ 7 5 540 355 Delaware ........................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) District of Columbia ............... ( 2 ) - ( 2 ) - Florida ............................ 35 47 2,280 3,235 Georgia ............................ 10 13 1,218 1,563 Hawaii ............................. 4 6 251 504 Idaho .............................. 14 9 1,344 1,701 Illinois ........................... 53 37 6,019 8,907 Indiana ............................ 15 18 1,609 3,013 Iowa ............................... 4 ( 1 ) 371 ( 1 ) Kansas ............................. 4 8 487 1,397 Kentucky ........................... 7 9 744 2,087 Louisiana .......................... 5 12 301 1,048 Maine .............................. 5 6 511 430 Maryland ........................... 12 10 694 2,022 Massachusetts ...................... 9 12 666 2,062 Michigan ........................... 12 ( 1 ) 1,097 ( 1 ) Minnesota .......................... 4 10 391 1,468 Mississippi ........................ 8 ( 2 ) 1,688 ( 2 ) Missouri ........................... 17 27 1,482 3,565 Montana ............................ ( 2 ) - ( 2 ) - Nebraska ........................... - - - - Nevada ............................. 6 4 404 293 New Hampshire ...................... ( 2 ) 3 ( 2 ) 197 New Jersey ......................... 24 21 2,116 3,051 New Mexico ......................... - ( 2 ) - ( 2 ) New York ........................... r64 31 r7,916 2,533 North Carolina ..................... 8 7 612 564 North Dakota ....................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Ohio ............................... 17 24 1,730 2,603 Oklahoma ........................... 6 3 396 210 Oregon ............................. 6 12 389 1,201 Pennsylvania ....................... 72 ( 1 ) 4,974 ( 1 ) Rhode Island ....................... 3 4 339 325 South Carolina ..................... 28 20 2,640 2,437 South Dakota ....................... - ( 2 ) - ( 2 ) Tennessee .......................... 7 19 644 1,603 Texas .............................. 56 74 4,489 8,289 Utah ............................... ( 2 ) 3 ( 2 ) 492 Vermont ........................... ( 2 ) - ( 2 ) - Virginia ........................... 17 16 2,411 2,574 Washington ......................... 6 14 488 1,616 West Virginia ...................... 3 ( 2 ) 349 ( 2 ) Wisconsin .......................... 22 37 2,190 3,305 Wyoming ............................ - - - - Puerto Rico ........................ 9 12 770 1,765 1 For August 1997, data were reported by the District of Columbia and all states, except Iowa, Michigan, and Pennsylvania. 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, August 1996 and August 1997 Mass layoff events Initial claimants for unemployment insurance Industry August August August August 1996 1997 1996 1997 Total( 1 )....................................... 912 848 82,783 86,688 Total, private......................................... 891 807 81,181 83,119 Agriculture.......................................... 43 49 2,906 2,668 Nonagriculture....................................... 816 741 75,216 78,776 Manufacturing...................................... 348 294 32,623 34,568 Durable Goods................................... 184 160 18,741 21,035 Lumber and wood products..................... 5 7 301 557 Furniture and fixtures....................... 14 12 1,200 1,486 Stone, clay, and glass products.............. 3 5 255 371 Primary metal industries..................... 13 13 1,113 829 Fabricated metal products.................... 19 17 1,648 1,585 Industrial machinery and equipment........... 45 35 4,588 4,377 Electronic and other electrical equipment.... 31 29 2,648 3,664 Transportation equipment..................... 32 26 5,411 6,930 Instruments and related products............. 9 7 595 617 Miscellaneous manufacturing industries....... 13 9 982 619 Nondurable goods................................ 164 134 13,882 13,533 Food and kindred products.................... 54 51 4,671 5,763 Textile mill products........................ 19 15 1,680 2,085 Apparel and other textile products........... 40 34 2,851 2,999 Paper and allied products.................... 9 ( 2 ) 1,113 ( 2 ) Printing and publishing...................... 21 12 1,371 993 Chemicals and allied products................ 3 ( 2 ) 135 ( 2 ) Rubber and miscellaneous plastics products... 13 10 1,611 721 Leather and leather products................. 5 ( 2 ) 450 ( 2 ) Nonmanufacturing................................... 468 447 42,593 44,208 Mining........................................... 6 ( 2 ) 555 ( 2 ) Construction..................................... 34 65 2,432 4,241 Transportation and public utilities.............. 46 72 4,394 17,163 Wholesale and retail trade....................... 137 92 12,009 7,178 Wholesale trade............................... 26 17 1,745 1,289 Retail trade.................................. 111 75 10,264 5,889 Finance, insurance, and real estate.............. 17 ( 2 ) 1,526 ( 2 ) Services......................................... 228 193 21,677 14,048 Not identified....................................... 32 17 3,059 1,675 Government............................................. 21 41 1,602 3,569 Federal............................................ 8 10 512 1,169 State.............................................. 2 12 214 1,137 Local.............................................. 11 19 876 1,263 1 For August 1997, data were reported by the District of Columbia and all states, except Iowa, Michigan, and Pennsylvania. 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 August 1996 due to the inclusion of new data for New York.