Technical information: (202) 691-6392

http://www.bls.gov/mls/

Media contact: 691-5902

USDL 02-493

For release: 10:00 A.M. EDT

Thursday, August 22, 2002

MASS LAYOFFS IN JULY 2002

Employers initiated 2,041 mass layoff actions in July 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 245,457. (See table 1.) A year earlier, in July 2001, there were 2,117 mass layoff events involving

273,807 workers. From January through July 2002, the total number of initial claims, at 1,317,394, was

lower than January-July 2001 (1,407,980), while the number of events, at 11,843, was somewhat higher

(11,658).

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 44 percent of all mass layoff events and 55 percent of all initial

claims filed in July. A year earlier, layoffs in this sector accounted for 54 percent of events and 62 percent

of initial claims. The number of initial claimants was highest in transportation equipment (47,583, mostly in

light truck and utility vehicles), followed by machinery manufacturing (12,778, largely in construction

machinery), computer and electronic products (11,987, primarily in semiconductors and related devices),

and plastics and rubber products (10,080, mainly in miscellaneous plastic products). (See table 2.)

Eleven percent of all layoff events and 10 percent of initial claims filed during the month were in administrative and waste services, mostly in temporary help services. From January through July, 91,480 mass

layoff initial claims were filed from this industry. Four percent of the events and 5 percent of initial claims

were from the information sector, mainly in motion picture and sound recording. Retail trade accounted for

an additional 5 percent of events and 4 percent of initial claims, primarily in general merchandise stores.

Government establishments accounted for 5 percent of events and 4 percent of initial claims filed during

the month, largely in educational services, particularly elementary and secondary schools.
2

Compared with July 2001, the largest decreases in initial claims were reported in manufacturing

industries—machinery manufacturing (-7,052), primary metals (-5,397), and computer and electronic

products (-4,973). The largest over-the-year increases in initial claims were reported in educational

services (+2,940), food services and drinking places (+2,408), and general merchandise stores (+2,185).

Geographic Distribution

Among the four regions, the highest number of initial claims in July due to mass layoffs was in the

Midwest, 89,068. (See table 3.) The manufacture of transportation equipment, machinery, and plastics

and rubber products accounted for 56 percent of all initial claims in the Midwest during the month. The

West followed with 64,961 initial claims (mainly in administrative and waste services), then the South, with

56,416 (largely in transportation equipment manufacturing), and the Northeast, with 35,012 (mostly in

fabricated metal product manufacturing).

The number of initial claimants in mass layoffs declined over the year in 2 of the 4 geographic regions,

with the largest decrease occurring in the Midwest (-27,049). The largest over-the-year increase was reported in the Northeast (+1,522). Six of the nine geographic divisions reported over-the-year declines in

the number of initial claims associated with mass layoffs, with the largest decline in the East North Central

(-30,155). The largest increase was reported in the East South Central (+6,078).

California had the largest number of initial claims filed in mass layoff events this July, 52,556, mostly in

administrative and support services and in motion picture and sound recording industries. Michigan reported

15,700 initial claims in mass layoffs, followed by Ohio (15,236), Wisconsin (14,530), and Pennsylvania

(12,930). These five states accounted for 49 percent of all layoff events and 45 percent of all initial claims

for unemployment insurance. (See table 4.) Thus far this year, 331,796 mass layoff initial claims were filed

in California, 25 percent of the national total. The states with the next largest number of claims were

Pennsylvania (77,528) and Texas (76,293).

Michigan reported the largest over-the-year decrease in initial claims (-12,950), followed by Ohio

(-7,907) and Illinois (-6,510). The largest over-the-year increases occurred in Alabama (+5,978) and

New York (+5,644).

______________________________

The report on Mass Layoffs in August 2002 will be issued on Wednesday, September 25, 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 July 2002

Date

Total mass layoffs Extended mass layoffs 

lasting more than 30 days Realization rates1

Events Initial

claimants Events Initial

claimants Events Initial 

claimants

2000

July ............................................................................. 1,333 164,978 

August ........................................................................ 751 97,215 

September .................................................................. 936 106,842 

Third Quarter .............................................................. 3,020 369,035 1,014 189,250 33.6 51.3 

October ....................................................................... 874 103,755 

November ................................................................... 1,697 216,514 

December ................................................................... 2,677 326,743 

Fourth Quarter ............................................................ 5,248 647,012 2,005 376,611 38.2 58.2 

2001

January ....................................................................... 1,522 200,343 

February ..................................................................... 1,501 172,908 

March ......................................................................... 1,527 171,466 

First Quarter ............................................................... 4,550 544,717 1,765 r340,210 38.8 r62.5

April ............................................................................ 1,450 176,265 

May ............................................................................. 1,434 159,365 

June ............................................................................ 2,107 253,826 

Second Quarter .......................................................... 4,991 589,456 2,072 r401,168 41.5 68.1 

July ............................................................................. 2,117 273,807 

August ........................................................................ 1,490 166,148 

September .................................................................. 1,327 160,402 

Third Quarter .............................................................. 4,934 600,357 1,815 r370,620 36.8 r61.7

October ....................................................................... 1,831 215,483 

November ................................................................... 2,721 295,956 

December ................................................................... 2,440 268,893 

Fourth Quarter ............................................................ 6,992 780,332 r2,698 r500,925 38.6 r64.2

2002

January ....................................................................... 2,146 263,821 

February ..................................................................... 1,383 138,984 

March ......................................................................... 1,460 161,336 

First Quarter ............................................................... 4,989 564,141 r1,749 r313,686 r35.1 r55.6

April ............................................................................ 1,507 165,861 

May ............................................................................. 1,726 180,007 

Junep

 .......................................................................... 1,580 161,928 

Second Quarterp

 ........................................................ 4,813 507,796 2 1,754 2 256,338 36.4 50.5 

Julyp

 ............................................................................ 2,041 245,457 

 1 The event realization rate is the percentage of total mass layoff 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.

layoffs lasting more than 30 days. p = preliminary.

 2

 These quarterly numbers are provisional and will increase as more r = revised.

data on these layoffs become available. Recent experience suggests
Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance

Industry

Mass layoff events Initial claimants for

unemployment insurance

July May June July July May June July

2001r 2002 2002p 2002p 2001r 2002 2002p 2002p

 Total1 ..................................................................... 2,117 1,726 1,580 2,041 273,807 180,007 161,928 245,457 

Total, private ............................................................... 2,042 1,635 1,356 1,936 266,358 170,712 142,567 235,792 

 Agriculture, forestry, fishing and hunting ................ 90 62 92 118 7,230 3,802 6,256 8,734 

 Mining ..................................................................... 8 15 8 12 1,308 1,553 1,210 1,450 

 Utilities .................................................................... 3 6 3 4 1,019 597 303 320 

 Construction ........................................................... 65 165 84 74 5,167 13,521 5,809 5,675 

 Manufacturing.......................................................... 1,144 488 336 908 168,877 52,720 42,117 135,392 

 Food ................................................................... 81 79 49 60 9,832 9,335 5,851 6,102 

 Beverage and tobacco products ........................ ( 2 ) 3 6 ( 2 ) ( 2 ) 224 452 ( 2 )

 Textile mills ......................................................... 41 19 10 33 5,807 2,072 1,118 4,801 

 Textile product mills ............................................ 10 8 5 11 933 617 663 2,336 

 Apparel ............................................................... 46 33 15 34 7,116 2,578 1,363 3,196 

 Leather and allied products ................................ 11 – ( 2 ) 6 1,056 – ( 2 ) 378 

 Wood products ................................................... 26 23 18 28 3,239 2,348 2,359 2,893 

 Paper .................................................................. 19 10 8 13 2,362 1,141 1,078 1,244 

 Printing and related support activities ................ 10 21 13 13 1,023 1,892 1,057 1,331 

 Petroleum and coal products ............................. ( 2 ) 3 ( 2 ) ( 2 ) ( 2 ) 184 ( 2 ) ( 2 )

 Chemicals ........................................................... 22 11 6 14 2,690 815 606 1,473 

 Plastics and rubber products .............................. 83 9 10 71 9,333 798 898 10,080 

 Nonmetallic mineral products ............................. 21 10 8 18 2,871 1,190 754 2,813 

 Primary metals ................................................... 79 27 18 64 13,048 2,787 2,681 7,651 

 Fabricated metal products .................................. 96 25 20 60 10,190 2,252 2,103 7,556 

 Machinery ........................................................... 101 35 27 76 19,830 3,902 4,543 12,778 

 Computer and electronic products ..................... 129 69 36 94 16,960 5,813 2,959 11,987 

 Electrical equipment and appliances .................. 47 28 25 31 7,949 4,490 5,281 5,046 

 Transportation equipment .................................. 258 53 34 234 47,285 6,869 5,594 47,583 

 Furniture and related products ........................... 33 12 17 27 4,639 2,513 2,005 4,191 

 Miscellaneous manufacturing ............................. 26 10 7 17 2,427 900 527 1,699 

 Wholesale trade ..................................................... 31 35 23 29 2,591 2,937 2,165 3,017 

 Retail trade ............................................................. 96 131 83 93 10,996 16,192 7,257 10,447 

 Transportation and warehousing ............................ 86 52 141 71 7,378 5,680 18,068 6,691 

 Information ............................................................. 59 86 42 72 11,329 13,036 4,210 12,555 

 Finance and insurance ........................................... 34 44 35 52 2,814 3,327 2,431 4,394 

 Real estate and rental and leasing ......................... 13 7 7 11 939 452 602 1,066 

 Professional and technical services ....................... 59 80 36 74 6,597 6,199 8,902 6,818 

 Management of companies and enterprises .......... 4 4 3 3 595 395 621 323 

 Administrative and waste services ......................... 205 222 165 233 28,056 26,191 14,236 24,853 

 Educational services............................................... 6 3 18 15 435 190 1,128 1,239 

 Health care and social assistance .......................... 38 76 117 54 2,406 7,006 10,987 3,652 

 Arts, entertainment, and recreation ........................ 13 33 29 23 1,038 2,267 1,983 1,599 

 Accommodation and food services ........................ 53 88 80 70 4,271 10,807 9,966 5,930 

 Other services, except public administration........... 10 34 49 17 596 3,228 3,976 1,385 

 Unclassified ........................................................... 25 4 5 3 2,716 612 340 252 

Government ................................................................ 75 91 224 105 7,449 9,295 19,361 9,665 

 Federal ................................................................... 18 21 13 6 2,020 2,739 1,791 787 

 State ....................................................................... 7 14 16 17 592 1,510 1,665 1,321 

 Local ....................................................................... 50 56 195 82 4,837 5,046 15,905 7,557 

 1

 For July 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. for 2002 will not be comparable to the SIC-based data for earlier r = revised. years. However, the monthly historical industry series from April 

 NOTE: Beginning with data for January 2002, the 2002 version of the North American 1995 to December 2001 are available on both SIC and NAICS 

Industry Classification System (NAICS) is the basis for the assignment and tabulation of bases. Dash represents zero.

economic data by industry. NAICS is the product of a cooperative effort on the part of
Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division

Census region and division

Mass layoff events Initial claimants for

unemployment insurance

July May June July July May June July

2001 2002 2002p 2002p 2001 2002 2002p 2002p

 United States1 .....................................................

 r2,117 1,726 1,580 2,041 r

273,807 180,007 161,928 245,457 

Northeast .................................................................... 319 266 258 315 33,490 24,998 30,153 35,012 

 New England .......................................................... 70 41 57 68 8,574 3,765 6,746 7,000 

 Middle Atlantic ........................................................ 249 225 201 247 24,916 21,233 23,407 28,012 

South .......................................................................... r462 467 380 485 r56,394 48,506 37,559 56,416 

 South Atlantic ......................................................... 236 211 197 202 28,391 18,633 17,657 22,536 

 East South Central ................................................. 89 88 67 137 10,772 9,448 7,935 16,850 

 West South Central ................................................ r137 168 116 146 r17,231 20,425 11,967 17,030 

Midwest ...................................................................... 763 377 311 574 116,117 44,788 36,493 89,068 

 East North Central .................................................. 618 266 238 468 96,509 31,152 27,739 66,354 

 West North Central ................................................. 145 111 73 106 19,608 13,636 8,754 22,714 

West ........................................................................... 573 616 631 667 67,806 61,715 57,723 64,961 

 Mountain ................................................................. 74 48 59 66 8,156 4,604 7,073 6,399 

 Pacific ..................................................................... 499 568 572 601 59,650 57,111 50,650 58,562 

 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. Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, NOTE: The States (including the District of Columbia) that comprise Ohio, and Wisconsin; West North Central: Iowa, Kansas, Minnesota, Missouri, 

the census divisions are: New England: Connecticut, Maine, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho, 

Massachusetts, New Hampshire, Rhode Island, and Vermont; Middle Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, 

Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: California, Hawaii, Oregon, and Washington.

Delaware, District of Columbia, Florida, Georgia, Maryland, North

 
Table 4. State distribution: Mass layoff events and initial claimants for unemployment insurance

State Mass layoff events Initial claimants for

unemployment insurance

July May June July July May June July

2001 2002 2002p 2002p 2001 2002 2002p 2002p

 Total1 ....................................................................... r2,117 1,726 1,580 2,041 r273,807 180,007 161,928 245,457 

Alabama ..................................................................... 13 38 24 56 1,312 4,352 3,415 7,290 

Alaska ......................................................................... – ( 2 ) 4 – – ( 2 ) 401 –

Arizona ....................................................................... 22 11 23 28 2,149 1,256 2,576 2,528 

Arkansas .................................................................... 13 8 3 11 1,043 629 210 999 

California .................................................................... 444 517 507 545 51,198 50,063 43,520 52,556 

Colorado ..................................................................... 12 9 3 15 1,248 858 277 1,658 

Connecticut ................................................................ ( 2 ) 9 14 6 ( 2 ) 665 2,018 598 

Delaware .................................................................... 6 – ( 2 ) 4 1,021 – ( 2 ) 642 

District of Columbia .................................................... – ( 2 ) ( 2 ) ( 2 ) – ( 2 ) ( 2 ) ( 2 )

Florida ........................................................................ 80 102 104 92 6,692 7,045 7,222 6,405 

Georgia ....................................................................... 15 30 20 9 1,413 3,083 2,966 824 

Hawaii ......................................................................... ( 2 ) 6 ( 2 ) 3 ( 2 ) 462 ( 2 ) 256 

Idaho .......................................................................... 12 9 7 7 2,104 1,014 1,571 864 

Illinois ......................................................................... 68 67 58 62 16,031 10,079 6,074 9,521 

Indiana ........................................................................ 83 26 27 72 12,304 3,267 4,628 11,367 

Iowa ............................................................................ 49 19 13 25 8,154 2,203 1,615 6,494 

Kansas ....................................................................... 9 14 4 15 883 1,620 439 3,701 

Kentucky ..................................................................... 52 21 20 59 7,227 2,258 2,252 7,580 

Louisiana .................................................................... r

15 22 28 18 r2,109 2,166 2,757 1,294 

Maine .......................................................................... 5 5 4 ( 2 ) 586 353 225 ( 2 )

Maryland ..................................................................... 7 6 10 11 691 534 1,095 1,225 

Massachusetts ........................................................... 44 21 23 44 5,051 2,065 1,851 4,130 

Michigan ..................................................................... 231 44 50 144 28,650 4,408 5,002 15,700 

Minnesota ................................................................... 24 23 19 16 2,792 2,768 2,900 1,702 

Mississippi .................................................................. 12 9 6 5 1,171 821 405 583 

Missouri ...................................................................... 57 43 26 42 6,939 5,656 2,665 9,917 

Montana ..................................................................... – 3 ( 2

 ) ( 2 ) – 212 ( 2 ) ( 2 ) 

Nebraska .................................................................... 4 ( 2 ) 5 8 434 ( 2 ) 429 900 

Nevada ....................................................................... 20 8 15 11 2,095 714 1,933 991 

New Hampshire .......................................................... 11 ( 2 ) 5 5 1,846 ( 2 ) 1,229 696 

New Jersey ................................................................. 43 42 57 44 4,963 4,384 9,137 5,367 

New Mexico ................................................................ 5 5 3 ( 2 ) 252 355 168 ( 2 )

New York .................................................................... 39 80 40 88 4,071 6,785 3,072 9,715 

North Carolina ............................................................ 28 21 18 23 3,705 1,637 1,771 2,490 

North Dakota .............................................................. ( 2 ) 5 5 – ( 2 ) 653 644 –

Ohio ............................................................................ 127 70 46 98 23,143 7,231 5,247 15,236 

Oklahoma ................................................................... 14 7 7 20 1,720 760 450 2,757 

Oregon ....................................................................... 33 25 30 27 6,336 3,291 3,446 2,829 

Pennsylvania .............................................................. 167 103 104 115 15,882 10,064 11,198 12,930 

Rhode Island .............................................................. 4 ( 2

 ) 8 9 338 ( 2 ) 1,246 1,163 

South Carolina ............................................................ 63 24 19 35 9,790 2,492 1,848 6,590 

South Dakota .............................................................. – 5 ( 2 ) – – 562 ( 2 ) –

Tennessee .................................................................. 12 20 17 17 1,062 2,017 1,863 1,397 

Texas .......................................................................... 95 131 78 97 12,359 16,870 8,550 11,980 

Utah ............................................................................ ( 2 ) 3 6 ( 2 ) ( 2 ) 195 422 ( 2 )

Vermont ...................................................................... ( 2 ) ( 2 ) 3 3 ( 2 ) ( 2 ) 177 353 

Virginia ....................................................................... 35 23 20 24 4,971 3,355 2,193 3,974 

Washington ................................................................ 20 18 29 26 1,928 3,154 3,163 2,921 

West Virginia .............................................................. ( 2 ) 4 ( 2 ) 3 ( 2 ) 347 ( 2 ) 308 

Wisconsin ................................................................... 109 59 57 92 16,381 6,167 6,788 14,530 

Wyoming .................................................................... ––––––––

Puerto Rico ................................................................. 8 12 9 11 896 1,390 998 2,251 

 1 See footnote 1, table 2. r

 = revised.

2

 Data do not meet BLS or state agency disclosure standards. NOTE: Dash represents zero. p = preliminary.