Internet address: http://stats.bls.gov:80/newsrels.htm Technical information: (202) 606-6396 USDL 97-49 For release 10:00 A.M. EST Media contact: 606-5902 Thursday, February 13, 1997 MASS LAYOFFS FOR OCTOBER 1996 In October 1996, there were 1,262 mass layoff actions by employers as measured by new filings for unemployment insurance benefits during the month, according to 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 127,829 persons. Both layoff events and the number of workers involved were higher than in October 1995. (See table 1.) BLS also issues quarterly reports on mass layoffs that involve 50 or more workers from one establishment and are more than 30 days in duration. The monthly series covers mass layoffs of 50 or more workers beginning in a given month, regardless of duration. Information on the length of the layoff is obtained later for the quarterly release, which includes only mass layoffs lasting more than 30 days (referred to as "extended mass layoffs") and more information on the establishment classification and location and on the demographics of the laid-off workers. See the Technical Note for more detailed definitions. Because of the inclusion in the monthly figures of short-term layoffs of 30 days or less, the sum of the figures for the 3 months in a quarter will be substantially higher than the quarterly figure for extended mass layoffs of more than 30 days. For example, the sum of all mass layoffs in July, August, and September of 1996 was 2,878 layoff events involving 307,204 initial claimants for unemployment insurance. The third quarter 1996 figures for mass layoffs lasting more than 30 days, however, were 947 events and 125,828 claimants. A little more than one-third (35 percent) of all mass layoffs in the July-September period lasted for more than a month. In all quarters for which data are available, this ratio of "extended" mass layoffs to all mass layoffs varied from about 30 to 45 percent. State Distribution In the month of October, the states with the largest numbers of initial claims filed in mass layoff events were: California 54,913 Pennsylvania 11,961 Ohio 11,724 Texas 6,197 Illinois 4,139 These five states accounted for 72 percent of the total number of layoff events and 70 percent of the initial claims reported. (See table 2.) Layoffs in these states were primarily in business services (mostly in help supply) and transportation equipment manufacturing (primarily in motor vehicles and passenger car bodies). From October 1995 to October 1996, 22 states reported more people who filed initial claims stemming from mass layoff events. California reported the largest over-the-year rise (24,852), primarily in business services and agricultural services. Wisconsin reported the sharpest decline in initial claims (3,919), largely due to fewer layoffs in electronic equipment and food products. States with the largest over-the-year changes in initial claims were: Increases Decreases California 24,852 Wisconsin -3,919 Ohio 4,639 Washington -3,675 Missouri 2,367 Pennsylvania -3,550 Minnesota 1,988 Maryland -1,603 Texas 1,333 Alabama -1,597 Industry Distribution Manufacturing industries accounted for 40 percent of all initial claims filed and 31 percent of all mass layoff events. (See table 3.) Within manufacturing, slightly more layoff events occurred in nondurable goods industries than in durable goods industries. Manufacturing industries which had the largest numbers of initial claimants were: Transportation equipment 18,099 Food and kindred products 7,583 Apparel and other textile products 4,688 Industrial machinery and equipment 4,148 Primary metal industries 3,308 Within nonmanufacturing industries (including agriculture), over 60 percent of the activity was in services (largely in business services) and agricultural (mostly in farm labor contractors and crew leaders). Nonmanufacturing industries with the largest numbers of initial claims filed in mass layoff events were: Business services 12,586 Agricultural services 7,973 Agricultural crop production 6,294 Compared with October 1995, the largest changes in initial claims occurred in the following industries: Increases Agricultural crop production 3,610 Business services 3,510 Agricultural services 3,502 Motion pictures 2,972 Transportation equipment 2,852 Decreases Textile mill products -2,064 Apparel and other textile products -1,729 Executive, legislative, and general government, except finance -1,202 Fabricated metal products -890 Leather and leather products -855 Technical Note The Mass Layoff Statistics (MLS) program is a federal-state program which 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. Monthly reports from the MLS program began with data for September 1996. The program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Previously, however, monthly layoff statistics were not published. 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 1995 to October 1996 Total mass layoffs Extended mass layoffs lasting more than 30 days Event Date realization rate(1) Events Initial Events Initial claimants claimants 1995 July.......................... 1,452 162,229 August........................ 656 55,196 September..................... 684 73,088 Third quarter................. 2,792 290,513 902 r146,159 32.3 October....................... 1,050 110,134 November...................... 1,248 130,092 December...................... 2,010 209,060 Fourth quarter................ 4,308 449,286 1,716 r295,515 39.8 1996 January....................... 1,666 167,834 February...................... 918 74,984 March......................... 975 121,046 First quarter................. 3,559 363,864 r1,354 r215,718 r38.0 April......................... 1,010 110,873 May........................... 913 78,045 June.......................... 893 77,287 Second quarter................ 2,816 266,205 r1,306 r188,498 r46.4 July.......................... 1,503 189,096 August........................ 869 76,462 September..................... r506 r41,646 Third quarter(2).............. r2,878 r307,204 947 125,828 35.2 October(3).................... 1,262 127,829 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. 2 Data for layoffs lasting more than 30 days were reported by the District of Columbia and all states, except Michigan and South Dakota. 3 Data for total mass layoffs were reported by the District of Columbia and all states, except Michigan. r = revised. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, October 1995 and October 1996 Mass layoff events Initial claimants for unemployment insurance State October October October October 1995 1996 1995 1996 Total(1)............... 1,050 1,262 110,134 127,829 Alabama.................. 15 4 1,828 231 Alaska................... 3 3 192 188 Arizona.................. 5 6 324 504 Arkansas................. 15 11 1,741 851 California............... 364 645 30,061 54,913 Colorado................. 7 10 589 791 Connecticut.............. (2) 5 (2) 1,038 Delaware................. - (2) - (2) District of Columbia..... (2) (2) (2) (2) Florida.................. 42 32 2,898 1,719 Georgia.................. 8 16 809 1,343 Hawaii................... 3 3 166 282 Idaho.................... 5 7 449 416 Illinois................. 43 44 5,162 4,139 Indiana.................. 20 12 1,669 1,360 Iowa..................... (2) 4 (2) 276 Kansas................... 5 4 2,215 1,503 Kentucky................. 6 5 838 350 Louisiana................ 6 4 1,617 305 Maine.................... 6 4 581 309 Maryland................. 12 6 2,402 799 Massachusetts............ 11 10 814 675 Michigan................. 19 (1) 2,429 (1) Minnesota................ 6 14 525 2,513 Mississippi.............. 6 4 520 211 Missouri................. 15 20 1,284 3,651 Montana.................. 3 3 248 233 Nebraska................. (2) - (2) - Nevada................... 4 4 612 303 New Hampshire............ (2) 3 (2) 371 New Jersey............... 23 23 2,891 2,876 New Mexico............... (2) (2) (2) (2) New York................. 6 15 470 1,792 North Carolina........... 11 7 1,615 1,423 North Dakota............. (2) (2) (2) (2) Ohio..................... 25 40 7,085 11,724 Oklahoma................. - (2) - (2) Oregon................... 7 9 503 1,588 Pennsylvania............. 168 123 15,511 11,961 Rhode Island............. - 3 - 429 South Carolina........... 17 18 2,251 2,499 South Dakota............. (2) - (2) - Tennessee................ 12 12 1,210 1,143 Texas.................... 51 63 4,864 6,197 Utah..................... (2) - (2) - Vermont.................. 3 (2) 302 (2) Virginia................. 10 12 682 1,883 Washington............... 10 10 4,410 735 West Virginia............ 7 (2) 809 (2) Wisconsin................ 59 32 6,604 2,685 Wyoming.................. - (2) - (2) Puerto Rico.............. 3 (3) 279 (3) 1 For October 1996, data were reported by the District of Columbia and all states, except Michigan. 2 Data do not meet BLS or state agency disclosure standards. 3 Data are not reported. NOTE: Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, October 1995 and October 1996 Mass layoff events Initial claimants for unemployment insurance Industry October October October October 1995 1996 1995 1996 Total, all industries(1)....................... 1,050 1,262 110,134 127,829 Total, private.................................. 1,015 1,201 105,946 123,043 Agriculture....................................... 97 192 7,155 14,267 Nonagriculture.................................... 853 919 91,579 98,913 Manufacutring.................................... 390 397 50,799 51,765 Durable goods................................... 174 193 29,649 33,992 Lumber and wood products....................... 14 16 1,201 1,418 Furniture and fixtures......................... 11 18 1,391 1,630 Stone, clay, and glass products................ 11 9 899 516 Primary metal industries....................... 15 14 1,802 3,308 Fabricated metal products...................... 29 13 2,375 1,347 Industrial machinery and equipment............. 20 31 2,226 4,148 Electronic and other electrical equipment...... 22 24 2,827 2,203 Transportation equipment....................... 40 51 15,515 18,099 Instruments and related products............... 8 10 822 691 Miscellaneous manufacturing industries......... 4 7 591 632 Nondurable goods................................ 216 204 21,150 17,773 Food and kindred products...................... 74 84 6,001 7,583 Textile mill products.......................... 28 14 3,678 1,614 Apparel and other textile products............. 63 58 6,417 4,688 Paper and allied products...................... 9 14 1,046 1,258 Printing and publishing........................ 14 12 1,194 929 Chemicals and allied products.................. (2) 6 (2) 410 Petroleum and coal products.................... (2) (2) (2) (2) Rubber and miscellaneous plastics products..... 11 12 1,193 943 Leather and leather products................... 11 (2) 1,161 (2) Nonmanufacturing................................. 463 522 40,780 47,148 Mining.......................................... 10 8 1,295 578 Construction.................................... 61 88 4,596 6,061 Transportation and public utilities............. 38 42 3,905 4,021 Wholesale and retail trade...................... 128 128 12,302 11,828 Wholesale trade................................ 19 22 2,042 1,545 Retail trade................................... 109 106 10,260 10,283 Finance, insurance, and real estate............ 17 16 1,494 1,056 Services....................................... 209 240 17,188 23,604 Not identified.................................... 65 90 7,212 9,863 Government....................................... 35 61 4,188 4,786 Federal......................................... 9 15 577 1,165 State........................................... 10 15 1,025 1,091 Local........................................... 16 31 2,606 2,530 1 For October 1996, data were reported by the District of Columbia and all states, except Michigan. 2 Data do not meet BLS or state agency disclosure standards.