Technical information:
http://www.bls.gov/mls/
Media contact:
(202) 691-6392
691-5902
USDL 02-660
For release: 10:00 A.M. EST
Tuesday, November 26, 2002
MASS LAYOFFS IN OCTOBER 2002
Employers initiated 1,497 mass layoff actions in October 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 171,088. (See table 1.) Almost 10 percent of the initial claims in October 2002 (16,548)
were in the temporary help services industry. In October 2001, which included the initial direct and indirect
effects of the September 11 terrorist attacks, there were 1,831 mass layoff events involving 215,483
workers. In January through October 2002, both the total number of events, 15,649, and initial claims,
1,740,828, were lower than in January-October 2001 (16,306 and 1,950,013, 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 33 percent of all mass layoff events and 38 percent of all initial
claims filed in October. A year earlier, layoffs in this sector accounted for 41 percent of events and 50 percent of initial claims. Within manufacturing, the number of initial claimants was highest in food processing
(12,111, mostly in fruits and vegetables) and machinery (8,309, largely in construction machinery), followed
by computer and electronic products (6,926) and transportation equipment (6,856). (See table 2.)
Fifteen percent of all layoff events and 16 percent of all initial claims filed during the month were in
administrative and waste services, mostly in temporary help services. Twelve percent of the events and
9 percent of initial claims in October were from agriculture, forestry, fishing and hunting, largely among farm
labor contractors and crew leaders. Retail trade accounted for 7 percent of events and 9 percent of initial
claims, primarily in general merchandise stores. Construction contributed 8 percent to all events and 6 percent to all initial claims this October, mainly from specialty trade contractors. An additional 4 percent of
events and 5 percent of initial claims were from the information sector, mostly in the motion picture and
sound recording industries.
Government establishments accounted for 3 percent of events and of initial claims filed during the month,
particularly in elementary and secondary schools.
2
Compared with October 2001, the largest decreases in initial claims were reported in transportation
equipment manufacturing (-24,780), professional and technical services (-5,522), air transportation (-5,366),
and accommodation services (-5,365). The largest over-the-year increase in initial claims was reported in
agriculture and forestry support activities (+7,179).
Geographic Distribution
Among the four regions, the highest number of initial claims in October due to mass layoffs was in the
West, 77,051. (See table 3.) Administrative and support services and agricultural support activities accounted for 36 percent of all initial claims in that region during the month. The Midwest followed with
37,561 initial claims (mainly in machinery manufacturing), then the South, with 35,515 (largely in administrative and support services). The Northeast continued to report the lowest number of initial claims,
20,961, mostly in general merchandise stores.
The number of initial claimants in mass layoffs declined over the year in three of the four geographic regions. The largest decrease occurred in the Midwest (-31,253), largely in transportation equipment manufacturing. Eight of the nine geographic divisions reported over-the-year decreases in the number of initial
claims associated with mass layoffs, with the largest declines in the East North Central (-20,261) and West
North Central (-10,992) divisions. Only the Pacific division reported an increase (+14,049).
California had the largest number of initial claims filed in mass layoff events this October, 65,044, mostly
in administrative and support services and in agriculture and forestry support activities, followed by Illinois
(8,676), Pennsylvania (8,480), and Texas (8,470). These four states accounted for 55 percent of all layoff
events and 53 percent of initial claims for unemployment insurance. (See table 4.) Thus far this year,
471,121 mass layoff initial claims were filed in California, 27 percent of the national total. The states with the
next largest number of claims were Texas (104,703) and Pennsylvania (98,206).
Missouri reported the largest over-the-year decrease in initial claims (-7,606), followed by Ohio (-6,257)
and Michigan (-6,238). The largest over-the-year increase occurred in California (+16,728).
______________________________
The report on Mass Layoffs in November 2002 will be issued on Tuesday, December 24, 2002.
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, October 2000 to October 2002
Extended mass layoffs
lasting more than 30 days
Total mass layoffs
Date
Events
Initial
claimants
2000
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
July .............................................................................
August ........................................................................
Septemberp ................................................................
2,041
1,247
1,062
245,211
128,080
124,512
Third Quarterp .............................................................
4,350
497,803
1,497
171,088
Events
Initial
claimants
Realization rates1
Events
Initial
claimants
2,005
376,611
38.2
58.2
1,765
340,210
38.8
62.5
68.1
2001
2,072
r
401,270
41.5
1,815
r
370,942
36.8
r
61.8
2,698
r
502,287
38.6
r
64.4
r
1,748
r
314,966
r
35.0
r
55.8
r
1,905
r
347,321
r
39.6
r
68.4
1,309
2
193,385
2002
p
October .....................................................................
1
The event realization rate is the percentage of total mass layoff
2
30.1
38.8
that the number of extended mass layoff events is generally revised
events lasting more than 30 days. The initial claimant realization rate
upwards by less than 10 percent and the number of initial claimants
is the percentage of total mass-layoff initial claimants associated with
associated with such events increases by 25-40 percent.
p
= preliminary.
layoffs lasting more than 30 days.
2
These quarterly numbers are provisional and will increase as more
data on these layoffs become available. Recent experience suggests
r
= revised.
Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance
Initial claimants for
unemployment insurance
Mass layoff events
Industry
October
August
September
October
October
August
September
October
2001r
2002
2002p
2002p
2001r
2002
2002p
2002p
Total1 .....................................................................
1,831
1,247
1,062
1,497
215,483
128,080
124,512
171,088
Total, private ...............................................................
1,767
1,189
1,008
1,448
209,350
122,106
118,527
165,360
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 .............................
91
12
39
10
51
7
7,297
1,524
2,255
701
3,801
513
(2)
101
742
65
11
24
8
38
(2)
98
427
47
5
12
(2)
9,761
107,030
7,944
809
4,847
681
4,923
(2)
8,241
48,733
5,150
405
1,177
(2)
26
14
15
(2)
11
8
5
–
(2)
80
351
39
7
17
13
19
3
12
9
7
–
178
8
7
116
492
83
8
24
12
18
5
22
11
8
5
(2)
2,920
1,450
1,094
(2)
1,198
741
558
–
(2)
5,735
43,679
4,688
454
3,406
2,543
2,225
240
1,312
1,007
650
–
16,045
565
575
9,738
64,600
12,111
477
4,786
1,511
2,445
384
2,114
968
710
651
16
12
25
33
50
8
15
5
20
22
28
8
18
12
24
21
47
1,548
2,846
2,647
7,235
5,776
9,164
1,368
1,334
2,862
3,136
9,197
977
1,322
410
2,273
2,365
3,657
598
1,658
874
3,687
1,722
8,309
(2)
(2)
24
(2)
(2)
3,127
(2)
(2)
Chemicals ...........................................................
Plastics and rubber products ..............................
Nonmetallic mineral products .............................
Primary metals ...................................................
Fabricated metal products ..................................
Machinery ...........................................................
17
29
21
49
56
70
Computer and electronic products .....................
Electrical equipment and appliances ..................
Transportation equipment ..................................
Furniture and related products ...........................
Miscellaneous manufacturing .............................
96
35
127
25
11
74
23
50
11
13
47
23
32
17
8
63
25
49
14
15
11,417
5,370
31,580
3,119
1,020
6,202
3,082
6,665
888
931
5,146
2,679
4,984
2,834
507
6,926
4,879
6,856
1,749
1,185
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...........
27
97
85
71
33
21
57
(2)
227
4
13
24
135
9
23
111
68
45
26
11
47
–
179
(2)
27
17
38
13
20
93
68
47
26
(2)
29
(2)
133
5
18
19
49
(2)
23
112
41
53
25
(2)
42
(2)
224
–
28
17
58
14
2,077
9,324
11,158
7,674
2,798
1,528
9,047
(2)
22,995
246
1,031
2,166
11,374
680
2,357
11,322
8,140
4,006
2,161
647
6,455
–
18,192
(2)
1,738
1,422
2,702
1,745
1,708
10,095
18,128
6,585
2,530
(2)
2,811
(2)
14,255
369
1,299
2,157
4,056
(2)
1,948
15,506
5,022
9,019
2,123
(2)
3,525
(2)
26,896
–
1,902
1,263
5,057
908
Unclassified ...........................................................
13
3
1
5
1,226
737
103
369
Government ................................................................
Federal ...................................................................
State .......................................................................
Local .......................................................................
64
20
19
25
58
15
12
31
54
9
10
35
49
9
14
26
6,133
2,151
2,039
1,943
5,974
2,056
1,596
2,322
5,985
1,703
980
3,302
5,728
815
1,991
2,922
1
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
October
2001
August
2002
September
2002p
October
2002p
1,831
1,247
1,062
1,497
215,483
128,080
124,512
171,088
Northeast ....................................................................
273
195
158
181
29,900
25,178
15,981
20,961
New England ..........................................................
Middle Atlantic ........................................................
57
216
27
168
21
137
38
143
7,258
22,642
3,897
21,281
1,919
14,062
4,694
16,267
448
308
259
304
52,063
31,764
31,878
35,515
238
64
146
159
30
119
129
51
79
159
48
97
24,849
7,944
19,270
13,884
3,574
14,306
16,396
5,877
9,605
17,819
6,198
11,498
Midwest ......................................................................
450
251
177
293
68,814
28,016
25,437
37,561
East North Central ..................................................
West North Central .................................................
360
90
186
65
134
43
238
55
51,022
17,792
21,208
6,808
19,904
5,533
30,761
6,800
West ...........................................................................
660
493
468
719
64,706
43,122
51,216
77,051
Mountain .................................................................
Pacific .....................................................................
68
592
38
455
35
433
52
667
6,361
58,345
3,933
39,189
4,109
47,107
4,657
72,394
United States1 ....................................................
South ..........................................................................
South Atlantic .........................................................
East South Central .................................................
West South Central ................................................
r
r
r
October
2001
r
r
r
August
2002
September
2002p
October
2002p
1
See footnote 1, table 2.
Carolina, South Carolina, Virginia, and West Virginia; East South Central:
p
= preliminary.
Alabama, Kentucky, Mississippi, and Tennessee; West South Central: Arkansas,
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
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 .......................................................................
October
August
September
October
October
August
September
October
2001
2002
2002p
2002p
2001
2002
2002p
2002p
r
1,247
1,062
1,497
128,080
124,512
171,088
16
17
4
16
10
612
13
5
691
2,174
2,833
301
1,169
1,117
65,044
1,142
516
1,831
Alabama .....................................................................
Alaska .........................................................................
Arizona .......................................................................
Arkansas ....................................................................
California ....................................................................
Colorado .....................................................................
Connecticut ................................................................
Delaware ....................................................................
District of Columbia ....................................................
Florida ........................................................................
Georgia .......................................................................
Hawaii .........................................................................
Idaho ..........................................................................
9
4
12
5
516
16
6
8
3
119
16
20
11
Illinois .........................................................................
Indiana ........................................................................
Iowa ............................................................................
Kansas .......................................................................
Kentucky .....................................................................
Louisiana ....................................................................
Maine ..........................................................................
Maryland .....................................................................
Massachusetts ...........................................................
Michigan .....................................................................
Minnesota ...................................................................
Mississippi ..................................................................
Missouri ......................................................................
83
43
26
5
28
r
20
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
5
2
2
( )
( )
7
(2)
415
7
4
–
–
72
17
2
( )
10
(2)
7
39
88
19
11
36
51
23
10
11
14
19
–
8
17
26
11
3
28
(2)
–
9
4
376
6
4
–
2
( )
–
70
35
10
5
(2)
55
16
4
4
41
16
9
3
16
12
(2)
7
12
14
9
6
15
215,483
1,113
381
823
734
48,316
1,594
366
970
350
9,065
1,742
2,130
1,638
57
22
12
8
21
12
4
10
21
39
17
5
16
12,717
5,845
3,598
2,940
4,078
r
3,070
(2)
651
4,612
10,349
1,989
1,288
8,844
3
(2)
2
( )
485
(2)
34,590
573
588
–
–
5,154
1,734
2
( )
1,708
2
( )
1,618
421
39,691
561
262
–
(2)
4,143
4,639
428
287
6,707
2,512
1,673
196
1,773
761
(2)
815
988
1,544
1,142
782
1,886
8,676
3,629
2,339
768
2,479
954
680
1,263
2,318
4,111
2,000
429
1,238
(2)
1,043
543
2,561
4
11
3
33
6
13
3
29
( )
11
5
23
(2)
1,797
1,213
6,229
–
287
891
618
3,371
–
583
1,133
514
3,424
(2)
47
29
(2)
86
27
(2)
41
12
(2)
4,546
3,997
(2)
11,213
3,104
(2)
73
11
30
129
(2)
47
5
24
49
(2)
49
11
–
34
(2)
58
5
20
79
(2)
13,435
1,237
5,009
11,867
(2)
5,602
1,008
2,603
6,697
(2)
5,137
1,208
–
5,468
4
36
–
16
110
3
3
20
22
–
73
( )
(2)
12
2
(2)
30
59
2
2
( )
19
–
8
93
(2)
13
62
(2)
(2)
15
14
(2)
–
19
21
2
2
( )
18
19
–
5
70
(2)
(2)
8
21
3
62
2
( )
39
–
( )
29
–
10
9
(2)
4
464
5,361
–
1,465
14,229
307
462
2,713
2,509
–
8,676
2
( )
–
4,604
3,219
800
708
6,185
2,954
939
1,378
2,032
1,513
–
898
2,132
2,535
1,243
176
2,884
( )
23
3
40
2
–
r
(2)
3,965
5,501
327
(2)
5,226
1,494
(2)
7,178
957
3,123
8,480
( )
2
( )
2
( )
1,238
–
675
11,660
2,220
(2)
1,148
8,280
4,555
–
457
8,470
(2)
(2)
1,693
1,856
(2)
–
3,092
2,889
( )
3,932
–
2
( )
3,673
–
772
873
(2)
1,035
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.
2
2
(2)
(2)
619
3,126
468
7,167
(2)
402