1 Technical information: http://www.bls.gov/mls/ Media contact: (202) 691-6392 691-5902 USDL 04-287 For release: 10:00 A.M. EST Wednesday, February 25, 2004 MASS LAYOFFS IN JANUARY 2004 In January 2004, there were 2,428 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 239,454. (See table 1.) This marked the most events for a January and the third highest January level of mass-layoff initial claims since the series began. Both the number of layoff events and initial claims were higher than a year ago. January 2004 marked only the third time in the last two years that initial claims had increased over the year. Industry Distribution Temporary help services, with 17,544 initial claimants, and school and employee bus transportation, with 8,631 initial claimants, together accounted for 11 percent of all initial claims in January. The latter industry reached a peak for a January this month. (See table A.) The 10 industries reporting the highest number of mass-layoff initial claims accounted for 62,597 initial claims in January, 26 percent of the total. The manufacturing sector recorded 35 percent of all mass layoff events and 37 percent of all initial claims filed in January. A year ago, manufacturing reported 36 percent of events and 40 percent of initial claims. Within manufacturing, the number of claimants was highest in transportation equipment (15,107, mostly automotive-related) and in food processing (11,083, mainly in fruits and vegetables). (See table 2.) The administrative and waste services sector accounted for 12 percent of both events and initial claims filed in January, with layoffs mostly in temporary help services. Construction accounted for 13 percent of events and 10 percent of initial claims during the month, primarily in heavy and civil engineering construction and among specialty trade contractors. Eight percent of all layoff events and 9 percent of initial claims filed during the month were in retail trade, mainly in general merchandise stores, especially in discount department stores, which recorded a series peak for January. An additional 5 percent of events and 6 percent of initial claims in January were in transportation and warehousing. Government establishments accounted for 4 percent of events and 5 percent of initial claims filed during the month, particularly in the administration of economic programs and in educational services. The number of initial claims in government was the highest for a January since 1998. Compared with January 2003, the largest increases in initial claims were reported in motion picture and sound recording (+3,838), transit and ground passenger transportation (+3,096), transportation equipment 2 Table A. Industries with the largest mass-layoff initial claims in January 2004 p January peak Industry Initial claims Temporary help services ........................................ School and employee bus transportation ................ Highway, street, and bridge contruction ................. Discount department stores ................................... Motion picture and video production ..................... Professional employer organizations ....................... Automobile manufacturing ...................................... Farm labor contractors and crew leaders .............. Hotels and motels, except casino hotels ................. Broadwoven fabric mills ........................................ 17,544 8,631 6,075 6,063 5,439 4,736 4,378 3,694 3,355 2,682 Year 1998 2004 2000 2004 1998 2002 2001 1999 1997 2002 Initial claims 26,224 8,631 9,680 6,063 12,038 5,033 21,093 5,859 4,460 5,419 p=preliminary. (+2,927), food manufacturing (+2,830), and heavy and civil engineering construction (+2,711). The largest over-the-year decreases in initial claims were reported in computer and electronic products (-3,816) and in air transportation (-3,695). Geographic Distribution Among the four regions, the highest number of initial claims in January due to mass layoffs was reported in the Midwest, 68,404. (See table 3.) Transportation equipment manufacturing and administrative and waste services accounted for 23 percent of all initial claims in that region during the month. The West region was next, with 67,285 initial claims, followed by the South, with 53,115, and the Northeast, with 50,650. The number of initial claimants in mass layoffs rose over the year in the Midwest (+16,242) and the Northeast (+6,254), and declined in the South (-8,372) and the West (-100). Four of the nine geographic divisions had over-the-year increases in the number of initial claims associated with mass layoffs, with the largest increases in the East North Central (+17,066) and Middle Atlantic (+7,493) divisions. The South Atlantic (-7,126) and East South Central (-2,142) divisions reported the largest declines in mass-layoff initial claims. Among the states, California recorded the largest number of initial claims filed in mass layoff events in January, 51,395, mostly in administrative and support services. New York reported 24,376 initial claims, followed by Michigan (16,615) and Ohio (15,169). These four states accounted for 45 percent of both layoff events and initial claims for unemployment insurance. (See table 4.) Michigan reported the largest over-the-year increase in the number of initial claims (+14,633), followed by New York (+5,570). The largest over-the-year decrease occurred in South Carolina (-2,391). Note 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”). The quarterly release provides more information on the industry classification and location of 3 the establishment and on the demographics of the laid-off workers. Because monthly figures include shortterm 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. _____________________________ The report on Mass Layoffs in February 2004 is scheduled to be released on Wednesday, March 24, 2004. NOTE: Due to budget constraints in the Mass Layoff Statistics (MLS) program, beginning with data for the first quarter of 2004, the scope of quarterly extended mass layoffs and plant closings, regularly reported in the release, Extended Mass Layoffs in (Quarter), has been redefined to cover only the private nonfarm economy. Quarterly information on layoff events in agriculture and government will no longer be collected. However, the monthly reporting of the MLS program in the release, Mass Layoffs in (Month), which is based only on administrative data, will be unaffected and will continue to cover the total economy. 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, January 2002 to January 2004 Private nonfarm Total mass layoffs Mass layoffs Date Events Initial claimants Events Initial claimants 2002 January .............................................. February ............................................. March ................................................. 2,146 1,382 1,460 263,777 138,808 161,316 2,028 1,253 1,335 252,245 129,849 151,305 First Quarter ....................................... 4,988 563,901 4,616 533,399 April .................................................... May .................................................... June ................................................... 1,506 1,723 1,584 165,814 179,799 162,189 1,378 1,571 1,266 153,216 166,801 136,424 Second Quarter .................................. 4,813 507,802 4,215 456,441 July ..................................................... August ................................................ September ......................................... 2,042 1,248 1,062 245,294 128,103 124,522 1,819 1,151 957 226,892 119,874 114,736 Third Quarter ...................................... 4,352 497,919 3,927 461,502 October .............................................. November .......................................... December .......................................... 1,497 2,153 2,474 171,100 240,171 264,158 1,270 1,860 2,324 149,327 216,237 252,807 Fourth Quarter ................................... 6,124 675,429 5,454 618,371 January .............................................. February ............................................. March ................................................. 2,315 1,363 1,207 225,430 124,965 113,026 2,130 1,222 1,099 210,918 116,264 104,468 First Quarter ....................................... 4,885 463,421 4,451 431,650 April .................................................... May .................................................... June ................................................... 1,581 1,703 1,691 161,412 174,204 157,552 1,470 1,538 1,336 152,937 160,729 127,743 Second Quarter .................................. 4,975 493,168 4,344 441,409 July ..................................................... August ................................................ September ......................................... 2,087 1,258 868 226,435 133,839 82,647 1,815 1,163 756 206,901 124,131 73,914 Third Quarter ...................................... 4,213 442,921 3,734 404,946 October .............................................. November .......................................... December p ........................................ 1,523 1,438 1,929 158,240 138,543 192,633 1,265 1,234 1,793 137,706 123,524 182,750 p Fourth Quarter ................................. 4,890 489,416 4,292 443,980 2,428 239,454 2,226 220,687 Extended mass layoffs lasting more than 30 days Initial claimants Events Realization rates1 Events Initial claimants 1,611 292,998 34.9 54.9 1,624 299,598 38.5 65.6 1,186 254,955 30.2 55.2 1,916 370,592 35.1 59.9 1,502 297,524 33.7 68.9 1,799 346,549 41.4 78.5 1,190 225,609 31.9 55.7 229,014 37.1 51.6 2003 2 1,592 2 2004 January 1 p ........................................... The event realization rate is the percentage of all private nonfarm data on these layoffs become available. Experience suggests that the mass layoff events lasting more than 30 days. The initial claimant realization number of extended mass layoff events is generally revised upwards rate is the percentage of all private nonfarm mass layoff initial claimants by less than 10 percent and the number of initial claimants associated associated with layoffs lasting more than 30 days. 2 These quarterly numbers are provisional and will be revised as more 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 January November December January 2003 2003 2003p 2004 January November December 2003 2003 2003 2004 Total .................................................................... 2,315 1,438 1,929 2,428 225,430 138,543 192,633 239,454 Total, private ............................................................... Agriculture, forestry, fishing and hunting ................ 2,228 98 1,380 146 1,846 53 2,339 113 217,441 6,523 133,818 10,294 185,928 3,178 228,578 7,891 Total, private nonfarm............................................... 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 .............................. 2,130 20 10 264 822 91 11 42 18 53 5 56 19 21 5 1,234 8 4 263 408 70 9 13 8 14 1,793 21 3 335 648 89 5 31 14 32 7 55 12 7 10 2,226 17 3 324 848 108 9 48 19 44 11 46 20 24 5 210,918 1,697 745 18,862 90,244 8,253 755 7,611 1,890 6,085 294 6,702 2,510 1,803 339 123,524 568 308 20,999 48,419 8,410 938 1,178 483 1,269 182,750 1,937 160 25,684 77,915 9,285 781 4,299 2,102 3,232 842 5,000 934 627 863 220,687 1,329 345 23,405 89,551 11,083 834 6,376 1,933 5,836 1,195 5,651 1,847 2,147 362 Chemicals ........................................................... Plastics and rubber products .............................. Nonmetallic mineral products ............................. Primary metals ................................................... Fabricated metal products .................................. Machinery ........................................................... 14 34 35 48 58 52 10 27 21 22 31 28 9 40 49 33 39 24 23 50 42 44 72 39 1,202 3,599 3,201 5,846 5,664 5,962 908 2,085 2,089 2,470 2,696 4,642 735 3,579 4,079 3,421 4,045 3,629 2,384 4,821 3,813 4,579 6,960 3,017 Computer and electronic products ..................... Electrical equipment and appliances .................. Transportation equipment .................................. Furniture and related products ........................... Miscellaneous manufacturing ............................. 81 30 86 36 27 19 12 51 10 8 19 20 122 14 17 44 23 114 36 27 7,377 2,920 12,126 4,003 2,102 1,468 2,671 9,696 856 891 1,408 4,726 21,061 1,607 1,660 3,561 2,263 15,107 3,541 2,241 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........... 43 209 147 69 46 7 45 (2) 274 2 ( ) 26 29 87 27 23 76 42 37 19 8 33 (2) 163 2 ( ) 28 26 75 15 27 98 131 40 27 4 57 3 200 6 27 20 131 12 27 188 128 67 41 15 47 3 285 8 35 41 113 26 3,307 21,592 16,422 6,034 3,854 408 6,346 (2) 26,885 2 ( ) 1,811 2,060 7,102 3,097 2,421 6,877 4,127 5,918 1,485 432 3,175 (2) 13,925 2 ( ) 2,243 1,920 7,348 1,081 2,443 9,203 15,528 3,839 1,764 562 6,095 296 17,256 327 2,075 1,795 14,701 955 2,391 22,145 14,038 9,394 3,547 1,202 4,288 895 27,855 553 2,991 3,149 9,614 2,992 Unclassified ........................................................... 2 2 3 10 172 1,646 215 1,003 Government ................................................................ Federal ................................................................... State ....................................................................... Local ....................................................................... 87 19 28 40 58 9 22 27 83 13 10 60 89 26 13 50 7,989 2,303 2,630 3,056 4,725 820 1,917 1,988 6,705 1,419 830 4,456 10,876 2,725 1,405 6,746 1 1 Data were reported by all states and the District of Columbia. 2 Data do not meet BLS or state agency disclosure standards. (2) 29 12 8 (2) p p = preliminary. (2) 3,852 856 570 (2) p January p 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 January 2003 November 2003 December 2003p January 2004p United States1 .................................................... 2,315 1,438 1,929 2,428 Northeast ................................................................... 475 210 350 New England .......................................................... Middle Atlantic ........................................................ 68 407 29 181 South .......................................................................... 554 South Atlantic ......................................................... East South Central ................................................. West South Central ................................................ November 2003 December 2003p 225,430 138,543 192,633 239,454 498 44,396 21,478 34,437 50,650 66 284 64 434 6,928 37,468 2,282 19,196 6,904 27,533 5,689 44,961 265 335 501 61,487 27,438 32,467 53,115 288 167 99 135 35 95 192 59 84 244 153 104 32,616 19,318 9,553 13,822 4,212 9,404 17,903 6,510 8,054 25,490 17,176 10,449 Midwest ...................................................................... 523 426 780 688 52,162 46,298 87,806 68,404 East North Central ................................................. West North Central ................................................ 401 122 313 113 596 184 574 114 41,608 10,554 31,687 14,611 64,802 23,004 58,674 9,730 West ........................................................................... 763 537 464 741 67,385 43,329 37,923 67,285 Mountain ................................................................ Pacific .................................................................... 73 690 51 486 63 401 63 678 6,151 61,234 4,606 38,723 7,025 30,898 6,292 60,993 1 See footnote 1, table 2. p = preliminary. 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; Middlee Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, Northhh January 2003 January 2004p 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 Initial claimants for unemployment insurance Mass layoff events State January November December January January November December January 2003 2003 2003p 2004p 2003 2003 2003p 2004p Total1 ....................................................................... 2,315 1,438 1,929 2,428 225,430 138,543 192,633 239,454 Alabama ..................................................................... Alaska ......................................................................... Arizona ....................................................................... Arkansas .................................................................... California .................................................................... Colorado ..................................................................... Connecticut ................................................................ Delaware .................................................................... District of Columbia .................................................... Florida ........................................................................ Georgia ....................................................................... Hawaii ......................................................................... Idaho .......................................................................... 119 7 14 8 579 16 16 10 6 4 3 420 7 4 27 3 8 6 346 11 13 112 6 7 14,789 471 1,292 699 48,913 1,540 1,508 1,384 561 257 777 32,200 549 312 3,728 213 551 656 25,953 1,107 1,166 13,754 429 645 2 ( ) (2) 4,044 10,525 296 1,125 2 ( ) 4 83 89 8 19 2 ( ) (2) 55 18 (2) 576 11 7 2 2 2 2 ( ) (2) 60 92 4 16 ( ) 350 5,767 12,406 773 1,478 ( ) (2) 3,533 1,771 ( ) 11 ( ) 4 63 31 6 12 ( ) 1,408 ( ) 287 4,826 3,354 506 1,647 2 2 (2) 51,395 1,043 669 2 Illinois ......................................................................... Indiana ........................................................................ Iowa ............................................................................ Kansas ....................................................................... Kentucky ..................................................................... Louisiana .................................................................... Maine .......................................................................... Maryland ..................................................................... Massachusetts ........................................................... Michigan ..................................................................... Minnesota ................................................................... Mississippi .................................................................. Missouri ...................................................................... 88 34 34 15 20 19 8 8 33 22 33 4 30 57 42 29 6 14 23 4 9 17 48 44 3 22 123 108 46 29 9 15 5 15 24 135 51 8 45 88 58 29 14 10 14 14 19 30 171 30 6 26 8,794 3,011 3,083 1,108 2,512 1,240 1,201 592 3,162 1,982 3,026 228 2,351 5,785 4,269 3,464 696 1,649 1,773 306 843 1,373 5,058 3,849 165 5,651 15,006 15,330 5,305 3,518 995 991 424 1,119 2,568 12,275 6,342 450 6,180 9,610 5,499 2,267 954 1,030 908 1,463 2,009 2,375 16,615 2,688 384 2,422 Montana ..................................................................... Nebraska .................................................................... Nevada ....................................................................... New Hampshire .......................................................... New Jersey ................................................................. New Mexico ................................................................ New York .................................................................... North Carolina ............................................................ North Dakota .............................................................. Ohio ............................................................................ Oklahoma ................................................................... Oregon ....................................................................... Pennsylvania .............................................................. 3 7 15 5 49 5 188 26 5 7 14 7 10 20 4 11 14 428 412 1,156 918 1,411 2,351 270 984 2,225 (2) 43 4 59 23 4 75 3 26 79 (2) 76 3 88 23 (2) 73 6 194 18 204 539 1,276 623 4,372 309 18,806 3,215 (2) 6,895 278 9,448 1,857 (2) 7,191 328 24,376 1,829 (2) 117 12 26 120 (2) 141 13 70 167 (2) 16,689 2,225 7,672 14,290 (2) 5,985 212 5,648 3,635 474 6,464 406 3,058 7,563 (2) 10,693 1,278 2,498 11,190 (2) 15,169 1,517 6,681 13,394 12 17 5 26 310 5,954 ( ) 1,775 2,713 332 3,563 (2) 15 51 (2) 25 74 5 5 24 22 (2) 1,789 5,389 (2) 1,014 6,448 596 (2) 1,337 5,129 (2) 2,008 7,571 656 573 3,061 2,192 Rhode Island .............................................................. South Carolina ............................................................ South Dakota .............................................................. Tennessee .................................................................. Texas .......................................................................... Utah ............................................................................ Vermont ...................................................................... Virginia ....................................................................... Washington ................................................................ West Virginia .............................................................. Wisconsin ................................................................... Wyoming .................................................................... Puerto Rico ................................................................. (2) 151 15 66 170 4 50 (2) 24 57 (2) (2) 24 30 3 106 – 14 2 ( ) 7 (2) 8 66 6 2 ( ) 16 32 5 91 – – (2) 10 34 20 3 113 – ( ) 116 – (2) (2) 3,266 3,405 174 11,132 – ( ) 2,644 2,751 556 10,111 – 5 1,371 – 2 6 2 547 1 See footnote 1, table 2. p 2 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero. = preliminary. 2 (2) 794 3,372 1,728 176 11,498 – ( ) 11,781 – 486 511 2
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