Technical information:
http://www.bls.gov/mls/
Media contact:
(202) 691-6392
691-5902
USDL 02-550
For release: 10:00 A.M. EDT
Wednesday, September 25, 2002
MASS LAYOFFS IN AUGUST 2002
Employers initiated 1,247 mass layoff actions in August 2002, 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 128,080. (See table 1.) A year earlier, in August 2001, there were 1,490 mass layoff
events involving 166,148 workers. Mass layoff initial claims in August are usually among the lowest for the
year. Almost 9 percent of the initial claims in August were from the temporary help services industry
(11,059). From January through August 2002, both the total number of events, at 13,090, and initial claims,
at 1,445,228, were lower than January-August 2001 (13,148 and 1,574,128, respectively).
The monthly data series in this release cover 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
Manufacturing industries accounted for 34 percent of all mass layoff events and 38 percent of all
initial claims filed in August. A year earlier, layoffs in this sector accounted for 40 percent of events and
48 percent of initial claims. The number of initial claimants was highest in machinery manufacturing (9,197,
mostly in air conditioning, refrigeration, and forced air heating equipment), followed by transportation equipment (6,665, largely in aircraft manufacturing) and computer and electronic products (6,202, primarily in
semiconductors and related devices). (See table 2.)
Fourteen percent of all layoff events and initial claims filed during the month were in administrative and
waste services, mostly in temporary help services. (From January through August, 102,476 mass layoff initial
claims were filed from temporary help services.) Nine percent of the events and initial claims in August were
from retail trade industries, mainly in general merchandise stores. Construction accounted for 8 percent of
events and 6 percent of initial claims, primarily among specialty trade contractors. The transportation and
warehousing sector accounted for an additional 5 percent of events and 6 percent of initial claims, largely in
school and employee bus transportation.
2
Government establishments accounted for 5 percent of events and initial claims filed during the month,
mostly in executive, legislative, and general government agencies.
Compared with August 2001, the largest decreases in initial claims were reported in transportation equipment manufacturing (-9,491) and computer and electronic product manufacturing (-9,386). The largest overthe-year increases in initial claims were reported in transit and ground passenger transportation (+1,893) and
general merchandise stores (+1,399).
Geographic Distribution
Among the four regions, the highest number of initial claims in August due to mass layoffs was in the
West, 43,122. (See table 3.) Administrative and support services and professional and technical services
accounted for 34 percent of all initial claims in the West during the month. The South followed with 31,764
initial claims (mainly in administrative and support services), then the Midwest, with 28,016 (largely in machinery manufacturing). The Northeast continued to report the lowest number of initial claims, with 25,178
(mostly in transit and ground passenger transportation).
The number of initial claimants in mass layoffs declined over the year in three of the four geographic regions, with the largest decreases occurring in the West (-19,704) and Midwest (-16,601). Seven of the nine
geographic divisions reported over-the-year declines in the number of initial claims associated with mass layoffs, with the largest declines in the Pacific (-18,754) and East North Central (-14,303). The largest increase
(+717) was reported in the New England division.
California had the largest number of initial claims filed in mass layoff events this August, 34,590, mostly
in administrative and support services and in professional and technical services, followed by Texas (11,660)
and New York (11,213). These three states accounted for 48 percent of all layoff events and 45 percent
of all initial claims for unemployment insurance. (See table 4.) Thus far this year, 366,386 mass layoff initial
claims were filed in California, 25 percent of the national total. The states with the next largest number of
claims were Texas (87,953) and Pennsylvania (84,225).
California reported the largest over-the-year decrease in initial claims (-15,753), followed by Michigan
(-10,379). The largest over-the-year increase occurred in New York (+5,035).
______________________________
The report on Mass Layoffs in September 2002 will be issued on Thursday, October 24, 2002.
3
Change in Industry Classification System
Beginning with the release of January 2002 mass layoff data on February 28, 2002, the
Mass Layoff Statistics program implemented the 2002 version of the North American Industry Classification System (NAICS) as the basis for the assignment and tabulation of economic
data by industry. NAICS is the product of a cooperative effort on the part of the statistical
agencies of the United States, Canada, and Mexico. Due to differences in NAICS and the
previously used Standard Industrial Classification (SIC) structures, data by industry for 2002
will not be comparable to the SIC-based data for earlier years. However, the monthly historical industry series from April 1995 through December 2001 are available on both SIC
and NAICS bases.
NAICS uses a production-oriented approach to categorize economic units. Units with
similar production processes are classified in the same industry. NAICS focuses on how
products and services are created, as opposed to the SIC focus on what is produced. This
approach yields significantly different industry groupings than those produced by the SIC
approach.
Users interested in more information about NAICS can access the BLS Web
page at http://www.bls.gov/bls/naics.htm or the Bureau of the Census Web page at
http://www.census.gov/epcd/www/naics.html.
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: 202-691-5200;
TDD message referral phone number: 1-800-877-8339.
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 2000 to August 2002
Total mass layoffs
Date
Events
Initial
claimants
2000
July .............................................................................
August ........................................................................
September ..................................................................
1,333
751
936
164,978
97,215
106,842
Third Quarter ..............................................................
3,020
369,035
October .......................................................................
November ...................................................................
December ...................................................................
874
1,697
2,677
103,755
216,514
326,743
Fourth Quarter ............................................................
5,248
647,012
January .......................................................................
February .....................................................................
March .........................................................................
1,522
1,501
1,527
200,343
172,908
171,466
First Quarter ...............................................................
4,550
544,717
April ............................................................................
May .............................................................................
June ............................................................................
1,450
1,434
2,107
176,265
159,365
253,826
Second Quarter ..........................................................
4,991
589,456
July .............................................................................
August ........................................................................
September ..................................................................
2,117
1,490
1,327
273,807
166,148
160,402
Third Quarter ..............................................................
4,934
600,357
October .......................................................................
November ...................................................................
December ...................................................................
1,831
2,721
2,440
215,483
295,956
268,893
Fourth Quarter ............................................................
6,992
780,332
January .......................................................................
February .....................................................................
March .........................................................................
2,146
1,383
1,460
263,821
138,984
161,336
First Quarter ...............................................................
4,989
564,141
April ............................................................................
May .............................................................................
June ............................................................................
1,507
1,726
1,580
165,861
180,007
161,928
Second Quarter ..........................................................
4,813
507,796
2,041
1,247
245,211
128,080
Extended mass layoffs
lasting more than 30 days
Events
Initial
claimants
Realization rates1
Events
Initial
claimants
1,014
189,250
33.6
51.3
2,005
376,611
38.2
58.2
1,765
340,210
38.8
62.5
2,072
401,168
41.5
68.1
1,815
370,620
36.8
61.7
2,698
500,925
38.6
64.2
1,749
313,686
35.1
55.6
2001
2002
p
July ............................................................................
Augustp .......................................................................
1
The event realization rate is the percentage of total mass layoff
2, p
1,754
2, p
256,338
p
36.4
p
50.5
data on these layoffs become available. Recent experience suggests
events lasting more than 30 days. The initial claimant realization rate
that the number of extended mass layoff events is generally revised
is the percentage of total mass-layoff initial claimants associated with
upwards by less than 10 percent and the number of initial claimants
layoffs lasting more than 30 days.
2
These quarterly numbers are provisional and will increase as more
associated with such events increases by 25-40 percent.
p
= preliminary.
Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance
Initial claimants for
unemployment insurance
Mass layoff events
Industry
August
June
July
August
August
June
July
August
2001r
2002
2002p
2002p
2001r
2002
2002p
2002p
Total1 .....................................................................
1,490
1,580
2,041
1,247
166,148
161,928
245,211
128,080
Total, private ...............................................................
1,459
1,356
1,936
1,189
163,504
142,567
235,558
122,106
Agriculture, forestry, fishing and hunting ................
Mining .....................................................................
Utilities ....................................................................
Construction ...........................................................
Manufacturing..........................................................
Food ...................................................................
Beverage and tobacco products ........................
Textile mills .........................................................
Textile product mills ............................................
Apparel ...............................................................
Leather and allied products ................................
Wood products ...................................................
Paper ..................................................................
Printing and related support activities ................
Petroleum and coal products .............................
73
8
3
83
603
49
7
27
6
33
9
9
16
10
–
92
8
3
84
336
49
6
10
5
15
118
12
4
74
908
60
39
10
5,197
682
169
7,352
79,515
5,082
504
3,166
359
3,546
809
803
2,876
623
–
6,256
1,210
303
5,809
42,117
5,851
452
1,118
663
1,363
8,734
1,450
320
5,675
135,313
6,102
2,255
701
16
12
25
33
50
(2)
18
8
13
(2)
33
11
34
6
28
13
13
(2)
(2)
(2)
98
427
47
5
12
(2)
24
(2)
11
8
5
–
2
( )
(2)
8,241
48,733
5,150
405
1,177
(2)
2,359
1,078
1,057
(2)
4,795
2,336
3,196
378
2,893
1,244
1,331
(2)
(2)
(2)
1,198
741
558
–
825
1,834
1,233
3,267
4,170
9,001
606
898
754
2,681
2,103
4,543
1,451
10,080
2,813
7,651
7,556
12,778
1,368
1,334
2,862
3,136
9,197
(2)
3,127
(2)
Chemicals ...........................................................
Plastics and rubber products ..............................
Nonmetallic mineral products .............................
Primary metals ...................................................
Fabricated metal products ..................................
Machinery ...........................................................
10
20
8
32
44
71
6
10
8
18
20
27
14
71
18
64
60
76
Computer and electronic products .....................
Electrical equipment and appliances ..................
Transportation equipment ..................................
Furniture and related products ...........................
Miscellaneous manufacturing .............................
118
36
64
24
10
36
25
34
17
7
94
31
234
27
17
74
23
50
11
13
15,588
5,264
16,156
3,550
859
2,959
5,281
5,594
2,005
527
11,950
5,036
47,583
4,187
1,699
6,202
3,082
6,665
888
931
Wholesale trade .....................................................
Retail trade .............................................................
Transportation and warehousing ............................
Information .............................................................
Finance and insurance ...........................................
Real estate and rental and leasing .........................
Professional and technical services .......................
Management of companies and enterprises ..........
Administrative and waste services .........................
Educational services...............................................
Health care and social assistance ..........................
Arts, entertainment, and recreation ........................
Accommodation and food services ........................
Other services, except public administration...........
30
113
71
80
24
7
46
5
192
7
20
14
56
15
23
83
141
42
35
7
36
3
165
18
117
29
80
49
29
93
71
72
52
11
74
3
233
15
54
23
70
17
23
111
68
45
26
11
47
–
179
(2)
27
17
38
13
2,286
11,613
7,359
6,942
2,117
559
11,618
361
17,168
385
1,574
1,482
4,473
1,419
2,165
7,257
18,068
4,210
2,431
602
8,902
621
14,236
1,128
10,987
1,983
9,966
3,976
3,017
10,412
6,658
12,559
4,394
1,066
6,818
323
24,762
1,239
3,652
1,599
5,930
1,385
2,357
11,322
8,140
4,006
2,161
647
6,455
–
18,192
(2)
1,738
1,422
2,702
1,745
Unclassified ...........................................................
9
5
3
3
1,233
340
252
737
Government ................................................................
Federal ...................................................................
State .......................................................................
Local .......................................................................
31
5
13
13
224
13
16
195
105
6
17
82
58
15
12
31
2,644
480
1,231
933
19,361
1,791
1,665
15,905
9,653
781
1,315
7,557
5,974
2,056
1,596
2,322
1
For August 2002, data were reported by all states and the District of Columbia.
the statistical agencies of the United States, Canada, and Mexico.
2
Data do not meet BLS or state agency disclosure standards.
Due to differences in NAICS and SIC structures, data by industry
p
= preliminary.
= revised.
for 2002 will not be comparable to the SIC-based data for earlier
years. However, the monthly historical industry series from April
r
NOTE: Beginning with data for January 2002, the 2002 version of the North American
Industry Classification System (NAICS) is the basis for the assignment and tabulation of
economic data by industry. NAICS is the product of a cooperative effort on the part of
1995 to December 2001 are available on both SIC and NAICS
bases. Dash represents zero.
Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division
Initial claimants for
unemployment insurance
Mass layoff events
Census region and division
August
2001
June
2002
July
p
2002
August
2002p
August
2001
June
2002
July
2002p
August
2002p
1,490
1,580
2,041
1,247
166,148
161,928
245,211
128,080
Northeast ....................................................................
224
258
315
195
24,891
30,153
35,012
25,178
New England ..........................................................
Middle Atlantic ........................................................
34
190
57
201
68
247
27
168
3,180
21,711
6,746
23,407
7,000
28,012
3,897
21,281
r
318
380
485
308
r
33,814
37,559
56,170
31,764
r
149
52
117
197
67
116
202
137
146
159
30
119
r
14,245
5,444
14,125
17,657
7,935
11,967
22,290
16,850
17,030
13,884
3,574
14,306
Midwest ......................................................................
315
311
574
251
44,617
36,493
89,068
28,016
East North Central ..................................................
West North Central .................................................
245
70
238
73
468
106
186
65
35,511
9,106
27,739
8,754
66,354
22,714
21,208
6,808
West ...........................................................................
633
631
667
493
62,826
57,723
64,961
43,122
Mountain .................................................................
Pacific .....................................................................
53
580
59
572
66
601
38
455
4,883
57,943
7,073
50,650
6,399
58,562
3,933
39,189
1
United States .....................................................
South ..........................................................................
South Atlantic .........................................................
East South Central .................................................
West South Central ................................................
1
See footnote 1, table 2.
p
= preliminary.
r
r
= revised.
NOTE: The States (including the District of Columbia) that comprise
the 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
r
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
Total1 .......................................................................
Alabama .....................................................................
Alaska .........................................................................
Arizona .......................................................................
Arkansas ....................................................................
California ....................................................................
Colorado .....................................................................
Connecticut ................................................................
Delaware ....................................................................
District of Columbia ....................................................
Florida ........................................................................
Georgia .......................................................................
Hawaii .........................................................................
Idaho ..........................................................................
Illinois .........................................................................
Indiana ........................................................................
Iowa ............................................................................
Kansas .......................................................................
Kentucky .....................................................................
Louisiana ....................................................................
Maine ..........................................................................
Maryland .....................................................................
Massachusetts ...........................................................
Michigan .....................................................................
Minnesota ...................................................................
Mississippi ..................................................................
Missouri ......................................................................
Montana .....................................................................
Nebraska ....................................................................
Nevada .......................................................................
New Hampshire ..........................................................
New Jersey .................................................................
New Mexico ................................................................
New York ....................................................................
North Carolina ............................................................
North Dakota ..............................................................
Ohio ............................................................................
Oklahoma ...................................................................
Oregon .......................................................................
Pennsylvania ..............................................................
Rhode Island ..............................................................
South Carolina ............................................................
South Dakota ..............................................................
Tennessee ..................................................................
Texas ..........................................................................
Utah ............................................................................
Vermont ......................................................................
Virginia .......................................................................
Washington ................................................................
West Virginia ..............................................................
Wisconsin ...................................................................
Wyoming ....................................................................
Puerto Rico .................................................................
Initial claimants for
unemployment insurance
Mass layoff events
State
August
June
July
August
August
June
July
August
2001
2002
2002p
2002p
2001
2002
2002p
2002p
r
1,490
1,580
2,041
1,247
166,148
161,928
245,211
128,080
10
24
4
23
3
507
3
14
56
–
28
11
545
15
6
4
678
3,415
401
2,576
210
43,520
277
2,018
7,290
–
2,528
999
52,556
1,658
598
642
2
( )
10
6
519
5
3
2
( )
–
71
16
2
2
( )
(2)
104
20
2
( )
( )
8
7
56
24
15
11
24
r
19
58
27
13
4
20
28
4
10
23
50
19
6
26
3
(2)
15
57
11
3
27
(2)
2
(2)
(2)
53
22
3
50
3
33
107
5
15
5
57
3
40
18
5
46
7
30
104
5
26
8
19
(2)
15
89
4
(2)
17
78
6
3
20
29
( )
23
7
30
2
( )
10
25
–
58
–
9
5
2
2
( )
7
(2)
415
7
4
–
–
72
17
(2)
92
9
3
7
r
2
( )
655
854
50,343
492
308
2
( )
(2)
7,222
2,966
( )
804
2
( )
1,571
6,441
3,291
1,373
1,104
3,422
r
3,105
(2)
11
44
144
16
5
42
51
23
10
11
14
19
–
8
17
26
11
3
28
(2)
1,246
12,914
1,421
182
4,474
6,074
4,628
1,615
439
2,252
2,757
225
1,095
1,851
5,002
2,900
405
2,665
(2)
1,225
4,130
15,700
1,702
583
9,917
(2)
–
(2)
(2)
(2)
2
900
991
696
5,367
62
72
25
15
59
18
211
2
(2)
6,405
824
256
864
( )
10
8
11
5
44
4
11
3
33
( )
1,958
840
3,108
(2)
88
23
–
98
20
27
115
(2)
86
27
(2)
6,178
1,732
430
6,153
211
4,986
12,425
429
1,933
1,229
9,137
168
3,072
1,771
644
5,247
450
3,446
11,198
525
3,583
1,246
1,848
(2)
1,162
9,955
242
(2)
1,863
8,550
422
177
2,193
3,163
(2)
47
5
24
49
2
( )
9
35
–
17
97
19
–
8
93
(2)
(2)
15
14
( )
57
–
(2)
3
24
26
3
92
–
( )
39
–
( )
1,372
2,337
–
6,712
–
9
11
10
862
2
2
( )
–
5,822
1,368
2
2
1
See footnote 1, table 2.
r
2
Data do not meet BLS or state agency disclosure standards.
NOTE: Dash represents zero.
p
= preliminary.
= revised.
9,521
11,367
6,494
3,701
7,580
1,294
(2)
9,715
2,244
–
15,236
2,757
2,829
12,930
1,163
6,590
–
1,397
11,980
691
2
( )
485
(2)
34,590
573
588
–
–
5,154
1,734
2
( )
1,708
6,185
2,954
939
1,378
2,032
1,513
–
898
2,132
2,535
1,243
176
2,884
–
287
891
618
3,371
(2)
11,213
3,104
(2)
5,602
1,008
2,603
6,697
(2)
1,238
–
675
11,660
( )
6,788
–
(2)
353
3,974
2,921
308
14,530
–
( )
3,932
–
998
2,251
772
2
(2)
(2)
1,693
1,856
2