Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 98-180 Media contact: 606-5902 For release: 10:00 A.M. EDT Tuesday, May 5, 1998 MASS LAYOFFS IN FEBRUARY 1998 In February 1998, there were 969 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 81,381 persons. Both the number of layoff events and initial claimants for unemployment insurance were higher than in February 1997. (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. 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, 4,204 layoff events involving 411,377 initial claimants for unemployment insurance occurred in October, November, and December of 1997 combined. The fourth-quarter 1997 figures for mass layoffs lasting more than 30 days, however, were 1,637 events and 226,722 claimants. Thirty- nine percent of all mass layoffs in the October-December period lasted for more than a month. (See table 1.) In all quarters for which data are available, the proportion of mass layoffs that became "extended" mass layoffs varied from about 29 to 47 percent. Industry Distribution In February 1998, manufacturing industries accounted for 32 percent of all mass layoff events and 37 percent of all initial claims filed. (See table 3.) Manufacturing industries that had the largest numbers of initial claimants were transportation equipment (8,030), primarily in motor vehicles and car bodies, and food and kindred products (5,377), mostly in canned fruits and vegetables and candy and other confectionery products. Within private-sector nonmanufacturing industries (including agriculture), services accounted for 23 percent of the layoff events and 30 percent of the initial claims (primarily in business services and motion pictures). It should be noted that layoff events in business services (specifically help supply services) and the motion picture industry are more likely than those in other industries to last less than 31 days. Agriculture (primarily in agricultural services) contributed 28 percent to nonfactory layoff events and 22 percent to initial claims, and construction (mostly in special trade contractors) added an additional 26 percent to layoff events and 20 percent to initial claims. Nonmanufacturing - 2 - industries with the largest numbers of initial claims filed in mass layoff events were agricultural services (6,610) and business services (5,476). Compared with February 1997, the largest increases in initial claims occurred in transportation equipment (3,579), agricultural services (2,597), motion pictures (2,308), and special trade contractors (2,111). The largest over-the-year decreases in initial claims occurred in food and kindred products (-1,232) and lumber and wood products (-1,135). State Distribution Among the 50 states and the District of Columbia reporting data for February, California had the largest number of initial claims filed in mass layoff events (31,407), followed by Pennsylvania (7,344). California alone accounted for 49 percent of the layoff events and 39 percent of the initial claims. (See table 2.) From February 1997 to February 1998, California reported the largest over-the-year rise in initial claims (15,331), primarily in agricultural services and special trade contractors. Texas had the largest over-the- year decline in initial claims (-2,303), mostly in lumber and wood products, followed by New York (-2,138), primarily in special trade contractors, and New Jersey (-2,106), largely in transportation equipment. 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, October 1996 to February 1998 Extended mass layoffs Event Date Total mass layoffs lasting more than 30 days realization rate (1) Events Initial Events Initial claimants claimants 1996 October................ 1,289 131,850 November............... 1,433 130,774 December............... 1,824 204,123 Fourth quarter..... 4,546 466,747 1,913 375,338 42.1 1997 January................ 2,139 212,860 February............... 755 63,352 March.................. 783 84,069 First quarter...... 3,677 360,281 1,317 245,610 35.8 April ................. 1,269 152,168 May.................... 1,152 101,476 June .................. 1,238 121,256 Second quarter..... 3,659 374,900 1,574 306,750 43.0 July .................. 1,899 237,410 August ................ 973 99,513 September.............. 548 59,062 Third quarter...... 3,420 395,985 1,078 208,037 31.5 October................ 1,414 139,297 November............... 1,156 100,051 December............... 1,634 172,029 Fourth quarter..... 4,204 411,377 1,637 226,722 38.9 1998 January................ 2,360 255,203 February............... 969 81,381 1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days. Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance, February 1997 and February 1998 Mass layoff events Initial claimants for unemployment insurance State February February February February 1997 1998 1997 1998 Total( 1 )............................ (r)755 969 (r)63,352 81,381 Alabama ................................. ( 2 ) 9 ( 2 ) 1,251 Alaska .................................. - ( 2 ) - ( 2 ) Arizona ................................. 7 8 606 545 Arkansas ................................ 3 ( 2 ) 237 ( 2 ) California .............................. 253 472 16,076 31,407 Colorado ................................ 4 4 301 902 Connecticut ............................. 3 ( 2 ) 223 ( 2 ) Delaware ................................ ( 2 ) 3 ( 2 ) 1,471 District of Columbia .................... ( 2 ) - ( 2 ) - Florida ................................. 41 32 2,701 2,043 Georgia ................................. 5 8 360 555 Hawaii .................................. 4 ( 2 ) 300 ( 2 ) Idaho ................................... 4 5 289 328 Illinois ................................ 41 28 3,651 2,764 Indiana ................................. 12 11 1,047 862 Iowa .................................... 13 6 1,489 613 Kansas .................................. - 3 - 180 Kentucky ................................ - ( 2 ) - ( 2 ) Louisiana ............................... (r)8 9 (r)677 632 Maine ................................... ( 2 ) 9 ( 2 ) 632 Maryland ................................ 9 11 1,145 2,917 Massachusetts ........................... 14 12 2,014 1,519 Michigan ................................ 10 12 856 3,013 Minnesota ............................... 12 12 1,191 1,160 Mississippi ............................. ( 2 ) 9 ( 2 ) 654 Missouri ................................ 14 11 1,464 800 Montana ................................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) Nebraska ................................ - - - - Nevada .................................. 4 7 254 762 New Hampshire ........................... 4 ( 2 ) 305 ( 2 ) New Jersey .............................. 34 18 4,237 2,131 New Mexico .............................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) New York ................................ (r)37 15 (r)3,005 867 North Carolina .......................... 6 12 475 1,076 North Dakota ............................ - - - - Ohio .................................... 22 18 1,905 1,569 Oklahoma ................................ (r)3 ( 2 ) (r)178 ( 2 ) Oregon .................................. 15 16 1,095 1,251 Pennsylvania ............................ 53 90 4,153 7,344 Rhode Island ............................ 9 7 1,560 1,344 South Carolina .......................... 13 9 1,065 918 South Dakota ............................ - ( 2 ) - ( 2 ) Tennessee ............................... 3 8 170 475 Texas ................................... 36 31 5,001 2,698 Utah .................................... ( 2 ) - ( 2 ) - Vermont ................................ ( 2 ) - ( 2 ) - Virginia ................................ 8 11 955 1,386 Washington .............................. 5 9 451 609 West Virginia ........................... - - - - Wisconsin ............................... 32 30 2,759 3,680 Wyoming ................................. ( 2 ) - ( 2 ) - Puerto Rico ............................. 8 10 812 881 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. r = revised. NOTE: Dash represents zero. Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, February 1997 and February 1998 Mass layoff events Initial claimants for unemployment insurance Industry February February February February 1997 1998 1997 1998 Total( 1 )....................................... 755 969 63,352 81,381 Total, private......................................... 737 950 62,025 78,549 Agriculture.......................................... 104 176 6,075 10,232 Nonagriculture....................................... 610 761 54,248 67,004 Manufacturing...................................... 284 307 26,656 30,456 Durable Goods................................... 135 142 14,248 17,242 Lumber and wood products..................... 24 23 2,982 1,847 Furniture and fixtures....................... 3 7 271 457 Stone, clay, and glass products.............. 11 15 759 1,050 Primary metal industries..................... 9 7 922 527 Fabricated metal products.................... 14 14 1,197 1,158 Industrial machinery and equipment........... 7 19 641 1,228 Electronic and other electrical equipment.... 29 25 2,354 2,455 Transportation equipment..................... 29 25 4,451 8,030 Instruments and related products............. 5 4 346 299 Miscellaneous manufacturing industries....... 4 3 325 191 Nondurable goods................................ 149 165 12,408 13,214 Food and kindred products.................... 75 67 6,609 5,377 Tobacco products............................. ( 2 ) 3 ( 2 ) 222 Textile mill products........................ 6 16 397 1,352 Apparel and other textile products........... 27 35 2,111 2,797 Paper and allied products.................... 9 12 624 899 Printing and publishing...................... 13 14 905 1,030 Chemicals and allied products................ ( 2 ) 4 ( 2 ) 293 Rubber and miscellaneous plastics products... 7 11 534 956 Leather and leather products................. 5 3 608 288 Nonmanufacturing................................... 326 454 27,592 36,548 Mining........................................... ( 2 ) 9 ( 2 ) 698 Construction..................................... 68 161 4,742 9,209 Transportation and public utilities.............. 43 42 5,795 4,439 Wholesale and retail trade....................... 96 82 7,892 7,187 Wholesale trade............................... 17 17 1,298 1,196 Retail trade.................................. 79 65 6,594 5,991 Finance, insurance, and real estate.............. ( 2 ) 15 ( 2 ) 1,117 Services......................................... 103 145 7,867 13,898 Not identified....................................... 23 13 1,702 1,313 Government............................................. 18 19 1,327 2,832 Federal............................................ 5 3 401 238 State.............................................. 8 4 614 749 Local.............................................. 5 12 312 1,845 1 Data were reported by all states and the District of Columbia. 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 February 1997 due to the inclusion of new data for Louisiana, New York, and Oklahoma.