Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6396 USDL 99-218 For release: 10:00 A.M. EDT Media contact: 606-5902 Wednesday, August 11, 1999 MASS LAYOFFS IN APRIL 1999 In April 1999, there were 1,250 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 161,269. The number of layoff events was about the same as a year earlier, but the number of initial claimants for unemployment insurance was higher in April 1999 than in April 1998. (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 April 1999, manufacturing industries accounted for 36 percent of all mass layoff events and initial claims filed. Manufacturing industries that had the highest numbers of initial claimants were food products (12,319), primarily in canned and frozen fruits and vegetables; industrial machinery and equipment (9,608), mostly in construction machinery and internal combustion engines; and apparel (6,033), particularly in men’s and boys' trousers and slacks. (See table 2.) In nonmanufacturing industries, services accounted for 19 percent of all mass layoff events and 27 percent of all initial claims filed. The layoffs were predominantly in motion pictures (mostly in motion pictures and video production) and business services (particularly in help supply services). Layoffs in the motion picture and help supply services industries are more likely than most other industries to last less than 30 days. Retail trade accounted for 9 percent of layoff events and 8 percent of initial claimants during the month, largely in eating and drinking places. Agriculture accounted for 9 percent of layoff events and 6 percent of initial claimants during the month, concentrated primarily in agricultural services. Compared with April 1998, the largest increases in initial claims occurred in industrial machinery and equipment (+8,333) and motion pictures (+6,483). The largest over-the-year decrease in initial claims occurred in business services (-7,098). - 2 - Geographic Distribution In April, the number of initial claims due to mass layoffs was higher in the West (71,735) than in any other region; a year earlier, the West also had the largest number of initial claimants involved in mass layoffs. (See table 3.) The motion picture, business services, agricultural services, and food products industries contributed to the layoffs in the West. The smallest number of mass layoff initial claims was reported in the Northeast region (23,384). The largest over-the-year increase in mass layoff-related initial claims (+13,134) occurred in the South, followed closely by the Midwest (+12,705). Higher levels of initial claims this year were reported mainly in the South Atlantic and East North Central divisions, with more layoffs in industrial machinery and equipment and in textile products. Among the 50 states and the District of Columbia reporting data for April, California had the largest number of initial claims filed in mass layoff events (57,837), primarily in motion pictures, followed by Pennsylvania (10,385), Texas (10,185), and Wisconsin (9,115). These four states accounted for 52 percent of all layoff events and 54 percent of all initial claimants for unemployment insurance. (See table 4.) From April 1998 to April 1999, Texas reported the largest over-the-year rise in initial claims (+5,506), mainly in heavy construction, except buildings, and in oil and gas extraction, followed by Wisconsin (+4,108). California had the largest over-the-year decline in initial claims (-3,896), mostly in business 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, April 1997 to April 1999 Extended mass layoffs lasting more than 30 days Date Total mass layoffs Event realization rate(1) Initial Initial Events claimants Events claimants 1997 April ........................ 1,269 152,168 May .......................... 1,152 101,476 June ......................... 1,238 121,256 Second Quarter ............... 3,659 374,900 (r)1,587 (r)292,673 (r)43.4 July ......................... 1,899 237,410 August ....................... 973 99,513 September .................... 548 59,062 Third Quarter ................ 3,420 395,985 (r)1,082 (r)209,019 (r)31.6 October ...................... 1,414 139,297 November ..................... 1,156 100,051 December ..................... 1,634 172,029 Fourth Quarter ............... 4,204 411,377 (r)1,697 (r)316,035 (r)40.4 1998 January ...................... 2,360 255,203 February ..................... 970 81,455 March ........................ 762 78,210 First Quarter ................ 4,092 414,868 (r)1,320 (r)247,315 (r)32.3 April ........................ 1,253 132,476 May .......................... 1,180 107,952 June ......................... 1,208 183,590 Second Quarter ............... 3,641 424,018 (r)1,563 (r)402,259 (r)42.9 July(r) ...................... 2,220 286,055 August ....................... 617 53,665 September .................... 637 79,629 Third Quarter(r) ............. 3,474 419,349 1,234 256,790 35.5 October(r) ................... 1,557 256,658 November(r) .................. 1,372 162,537 December(r) .................. 1,644 193,072 Fourth Quarter(r) ............ 4,573 612,267 1,736 327,039 38.0 1999 January(r) ................... 2,415 296,404 February(r) .................. 1,077 117,274 March(r) ..................... 850 90,958 First Quarter.................(r)4,342 (r)504,636 (p)1,484 (p)200,677 (p)34.2 April ........................ 1,250 161,269 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, April 1998 and April 1999 Initial claimants for Mass layoff events unemployment insurance Industry April April April April 1998 1999 1998 1999 Total(1).......................................... 1,253 1,250 132,476 161,269 Total, private ........................................ 1,206 1,209 128,177 157,262 Agriculture ......................................... 124 109 10,354 10,201 Nonagriculture ...................................... 1,060 1,072 115,432 142,967 Manufacturing ..................................... 336 446 36,018 58,120 Durable goods ................................... 140 198 17,758 28,851 Lumber and wood products ...................... 13 14 1,393 951 Furniture and fixtures ........................ 5 6 312 671 Stone, clay, and glass products ............... 8 7 654 476 Primary metal industries ...................... 5 26 603 2,699 Fabricated metal products ..................... 22 20 1,899 1,781 Industrial machinery and equipment ............ 16 36 1,275 9,608 Electronic and other electrical equipment ..... 28 39 4,500 5,231 Transportation equipment ...................... 27 34 5,312 5,785 Instruments and related products .............. 7 11 495 1,097 Miscellaneous manufacturing industries ........ 9 5 1,315 552 Nondurable goods ................................ 196 248 18,260 29,269 Food and kindred products ..................... 95 105 9,479 12,319 Tobacco products .............................. 4 ( 2 ) 431 ( 2 ) Textile mill products ......................... 16 34 1,281 4,741 Apparel and other textile products ............ 35 48 3,160 6,033 Paper and allied products ..................... 12 16 1,363 1,383 Printing and publishing ....................... 9 18 622 1,926 Chemicals and allied products ................. 7 7 733 632 Petroleum and coal products ................... 6 ( 2 ) 380 ( 2 ) Rubber and miscellaneous plastics products .... 6 9 412 883 Leather and leather products .................. 6 7 399 711 Nonmanufacturing .................................. 724 626 79,414 84,847 Mining .......................................... 14 21 1,098 2,514 Construction .................................... 117 100 7,945 9,901 Transportation and public utilities ............. 92 84 10,963 10,737 Wholesale and retail trade ...................... 165 144 17,053 15,608 Wholesale trade .............................. 19 34 1,645 3,346 Retail trade ................................. 146 110 15,408 12,262 Finance, insurance, and real estate ............. 13 34 989 3,321 Services ........................................ 323 243 41,366 42,766 Not identified ...................................... 22 28 2,391 4,094 Government ............................................ 47 41 4,299 4,007 Federal ............................................. 8 11 726 967 State ............................................... 13 13 1,430 1,511 Local ............................................... 26 17 2,143 1,529 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division, April 1998 and April 1999 Mass layoff events Initial claimants for unemployment insurance Census region and division April April April April 1998 1999 1998 1999 United States ........................ 1,253 1,250 132,476 161,269 Northeast .................................... 189 218 21,523 23,384 New England .............................. 21 43 2,393 5,507 Middle Atlantic .......................... 168 175 19,130 17,877 South ........................................ 191 245 17,644 30,778 South Atlantic ........................... 96 113 8,961 16,071 East South Central ....................... 24 24 2,454 2,260 West South Central ....................... 71 108 6,229 12,447 Midwest ...................................... 185 271 22,667 35,372 East North Central ....................... 157 215 17,441 26,535 West North Central ....................... 28 56 5,226 8,837 West ......................................... 688 516 70,642 71,735 Mountain ................................. 58 62 5,167 7,401 Pacific .................................. 630 454 65,475 64,334 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, April 1998 and April 1999 Initial claimants for Mass layoff events unemployment insurance State April April April April 1998 1999 1998 1999 Total(1) ............................. 1,253 1,250 132,476 161,269 Alabama ................................. 5 7 423 641 Alaska .................................. 8 6 550 778 Arizona ................................. 29 19 3,180 2,698 Arkansas ................................ 7 6 582 730 California .............................. 588 396 61,733 57,837 Colorado ................................ 5 8 332 670 Connecticut ............................. - 6 - 478 Delaware ................................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) District of Columbia .................... ( 2 ) - ( 2 ) - Florida ................................. 43 39 3,167 3,777 Georgia ................................. 9 10 686 1,387 Hawaii .................................. 5 8 415 615 Idaho ................................... 5 11 249 1,783 Illinois ................................ 47 47 5,366 6,599 Indiana ................................. 9 15 1,387 1,759 Iowa .................................... ( 2 ) 14 ( 2 ) 2,545 Kansas .................................. 4 7 368 1,147 Kentucky ................................ 11 9 1,305 969 Louisiana ............................... 8 11 823 872 Maine ................................... 4 5 325 587 Maryland ................................ 4 5 403 345 Massachusetts ........................... 16 23 2,010 2,920 Michigan ................................ 7 35 518 3,371 Minnesota ............................... 3 9 204 1,442 Mississippi ............................. 3 7 423 599 Missouri ................................ 20 23 4,583 3,481 Montana ................................. 4 - 242 - Nebraska ................................ - ( 2 ) - ( 2 ) Nevada .................................. 7 19 511 1,853 New Hampshire ........................... - ( 2 ) - ( 2 ) New Jersey .............................. 44 45 6,302 4,816 New Mexico .............................. 7 ( 2 ) 599 ( 2 ) New York ................................ 25 25 2,489 2,676 North Carolina .......................... 9 10 725 1,922 North Dakota ............................ - ( 2 ) - ( 2 ) Ohio .................................... 42 47 5,163 5,691 Oklahoma ................................ ( 2 ) 7 ( 2 ) 660 Oregon .................................. 11 15 1,165 1,309 Pennsylvania ............................ 99 105 10,339 10,385 Rhode Island ............................ ( 2 ) 7 ( 2 ) 1,331 South Carolina .......................... 15 34 2,108 5,937 South Dakota ............................ - ( 2 ) - ( 2 ) Tennessee ............................... 5 ( 2 ) 303 ( 2 ) Texas ................................... 54 84 4,679 10,185 Utah .................................... ( 2 ) 4 ( 2 ) 304 Vermont ................................. - - - - Virginia ................................ 13 12 1,612 1,970 Washington .............................. 18 29 1,612 3,795 West Virginia ........................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) Wisconsin ............................... 52 71 5,007 9,115 Wyoming ................................. - - - - Puerto Rico ............................. 7 10 715 803 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.