Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 97-404 Media contact: 606-5902 For release: 10:00 A.M. EST Monday, November 17, 1997 MASS LAYOFFS IN SEPTEMBER 1997 In September 1997, there were 492 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 54,458 persons. (Preliminary figures may not include all states.) Although the number of layoff events was about the same as in September 1996, the number of initial claimants was higher. (See table 1.) September is typically the month that has the lowest unemployment insurance claimant activity during the year. 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, 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, the proportion of "extended" mass layoffs to all mass layoffs varied from about 34 to 47 percent. (See table 1.) Industry Distribution In September 1997, manufacturing industries accounted for about 30 percent of all mass layoff events and initial claims. (See table 3.) Within manufacturing, more initial claims were filed in durable goods than in nondurable goods industries. Manufacturing industries that had the largest numbers of initial claimants were: Transportation equipment 3,179 Food and kindred products 2,727 Apparel and other textile products 1,864 Textile mill products 1,582 Industrial machinery and equipment 1,576 - 2 - Within private-sector nonmanufacturing industries (including agriculture), services accounted for 42 percent of the layoff events and 62 percent of the initial claims (primarily in motion pictures and business services). It should be noted that layoff events in the motion picture industry and business services (specifically help supply services) are more likely than those in other industries to last less than 31 days. Retail trade (general merchandise stores) contributed an additional 14 percent to layoff events and 13 percent to initial claims. Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were: Motion pictures 10,428 Business services 6,399 General merchandise stores 2,382 Agricultural services 2,342 Compared with September 1996, the largest changes in initial claims occurred in the following industries: Increases Motion pictures 10,155 Business services 3,031 Agricultural services 1,331 Transportation equipment 1,266 Agricultural production, crops 1,158 Decreases Electronic and other electrical equipment -3,032 Rubber and miscellaneous plastics products -1,289 Textile mill products -873 Apparel and other textile products -653 Paper and allied products -639 State Distribution Among the 46 states and the District of Columbia reporting preliminary data for September, California had the largest number of initial claims filed in mass layoff events (30,414), followed by Missouri (3,171) and Texas (2,547). These three states accounted for 61 percent of the total number of layoff events and 66 percent of initial claims reported. (At the time these figures were compiled, information for Arkansas, Iowa, Michigan, and Pennsylvania was not available.) California alone accounted for 52 percent of the layoff events and 56 percent of the initial claims. (See table 2.) From September 1996 to September 1997, California reported the largest over-the-year rise in initial claims (18,230), primarily in motion pictures and business services. No other state had an over-the-year increase of 2,000 or more. Maryland reported the sharpest decline in initial claims (-1,589). 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 September 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 ................. 1,266 151,958 May ................... 1,143 100,733 June( 2 ).............. 1,230 120,304 Second quarter( p ) 3,639 372,995 ( 3 )1,301 ( 3 )177,871 35.8 July( 4 ).............. 1,695 205,498 August( 5 )............ 848 86,688 September( 6 )......... p492 p54,458 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, and Michigan. 4 Data exclude Iowa and Michigan. 5 Data exclude Iowa, Michigan, and Pennsylvania. 6 Data exclude Arkansas, Iowa, Michigan,and Pennsylvania. p = preliminary. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, September 1996 and September 1997 Mass layoff events Initial claimants for unemployment insurance State September September September September 1996 1997 1996 1997 Total ( 1 )............................ r509 492 r42,132 54,458 Alabama ................................. 5 - 330 - Alaska .................................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) Arizona ................................. ( 2 ) 4 ( 2 ) 294 Arkansas ................................ 6 ( 1 ) 582 ( 1 ) California .............................. 177 258 12,184 30,414 Colorado ................................ - - - - Connecticut ............................. ( 2 ) - ( 2 ) - Delaware ................................ - - - - District of Columbia .................... - - - - Florida ................................. 25 26 1,612 1,676 Georgia ................................. 7 8 487 594 Hawaii .................................. 3 4 306 363 Idaho ................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Illinois ................................ 23 18 2,845 1,733 Indiana ................................. 7 9 560 752 Iowa .................................... 3 ( 1 ) 288 ( 1 ) Kansas .................................. 5 3 277 175 Kentucky ................................ ( 2 ) 3 ( 2 ) 206 Louisiana ............................... 3 5 282 732 Maine ................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Maryland ................................ 9 4 1,852 263 Massachusetts ........................... ( 2 ) 3 ( 2 ) 299 Michigan ................................ 9 ( 1 ) 736 ( 1 ) Minnesota ............................... ( 2 ) 3 ( 2 ) 233 Mississippi ............................. 3 ( 2 ) 149 ( 2 ) Missouri ................................ 13 13 1,183 3,171 Montana ................................. ( 2 ) - ( 2 ) - Nebraska ................................ - - - - Nevada .................................. 3 4 260 356 New Hampshire ........................... - - - - New Jersey .............................. 12 12 1,124 1,037 New Mexico .............................. - ( 2 ) - ( 2 ) New York ................................ r12 16 r1,399 1,284 North Carolina .......................... 9 6 786 911 North Dakota ............................ - - - - Ohio .................................... 12 12 777 1,085 Oklahoma ................................ - 5 - 336 Oregon .................................. 13 7 969 996 Pennsylvania ............................ 53 ( 1 ) 3,699 ( 1 ) Rhode Island ............................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) South Carolina .......................... 14 8 1,948 1,210 South Dakota ............................ - - - - Tennessee ............................... 10 ( 2 ) 811 ( 2 ) Texas ................................... 22 27 1,904 2,547 Utah .................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Vermont ................................ - ( 2 ) - ( 2 ) Virginia ................................ 8 5 1,237 1,467 Washington .............................. 9 6 728 664 West Virginia ........................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Wisconsin ............................... 17 10 1,488 852 Wyoming ................................. - - - - Puerto Rico ............................. 6 9 678 745 1 For September 1997, data were reported by the District of Columbia and all states, except Arkansas, 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, September 1996 and September 1997 Mass layoff events Initial claimants for unemployment insurance Industry September September September September 1996 1997 1996 1997 Total ( 1 )...................................... 509 492 42,132 54,458 Total, private......................................... 498 460 41,232 51,848 Agriculture.......................................... 26 67 1,542 4,031 Nonagriculture....................................... 441 386 36,699 46,936 Manufacturing...................................... 232 147 21,794 15,773 Durable Goods................................... 104 60 9,873 7,990 Lumber and wood products..................... 6 5 481 347 Furniture and fixtures....................... ( 2 ) 4 ( 2 ) 388 Stone, clay, and glass products.............. 5 5 369 352 Primary metal industries..................... 13 5 898 424 Fabricated metal products.................... 11 6 845 490 Industrial machinery and equipment........... 13 7 1,091 1,576 Electronic and other electrical equipment.... 28 7 3,730 698 Transportation equipment..................... 18 13 1,913 3,179 Instruments and related products............. ( 2 ) 3 ( 2 ) 159 Miscellaneous manufacturing industries....... 5 5 295 377 Nondurable goods................................ 128 87 11,921 7,783 Tobacco products............................. - ( 2 ) - ( 2 ) Food and kindred products.................... 36 33 2,881 2,727 Textile mill products........................ 21 8 2,455 1,582 Apparel and other textile products........... 28 27 2,517 1,864 Paper and allied products.................... 10 4 841 202 Printing and publishing...................... 15 4 866 345 Chemicals and allied products................ 5 ( 2 ) 413 ( 2 ) Rubber and miscellaneous plastics products... 8 6 1,629 340 Leather and leather products................. 4 3 267 538 Nonmanufacturing................................... 209 239 14,905 31,163 Mining........................................... 5 ( 2 ) 504 ( 2 ) Construction..................................... 27 32 1,617 2,157 Transportation and public utilities.............. 25 15 1,849 1,386 Wholesale and retail trade....................... 53 50 3,556 4,932 Wholesale trade............................... 14 ( 2 ) 827 ( 2 ) Retail trade.................................. 39 42 2,729 4,442 Finance, insurance, and real estate.............. 12 11 1,049 693 Services......................................... 87 129 6,330 21,834 Not identified....................................... 31 7 2,991 881 Government............................................. 11 32 900 2,610 Federal............................................ 6 5 436 723 State.............................................. - 12 - 908 Local.............................................. 5 15 464 979 1 For September 1997, data were reported by the District of Columbia and all states, except Arkansas, Iowa, Michigan, and Pennsylvania. 2 Data do not meet BLS or state agency disclosure stanards. NOTE: Dash represents zero. NOTE: Data for total mass layoff events and initial claimants for unemployment insurance have been revised for September 1996 due to the inclusion of new data for New York.