1

Technical information: (202) 691-6392

Media contact: 691-5902

USDL 04-287

For release: 10:00 A.M. EST

Wednesday, February 25, 2004

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

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

Industry Initial claims

January peak

Year

Initial claims

Temporary help services........................................ 1998 26,224

School and employee bus transportation................ 2004 8,631

Highway, street, and bridge contruction ................. 6,075 2000 9,680

Discount department stores ................................... 6,063 2004 6,063

Motion picture and video production ..................... 5,439 1998 12,038

Professional employer organizations ....................... 4,736 2002 5,033

Automobile manufacturing...................................... 4,378 2001 21,093

Farm labor contractors and crew leaders .............. 3,694 1999 5,859

Hotels and motels, except casino hotels................. 3,355 1997 4,460

Broadwoven fabric mills ........................................ 2,682 2002 5,419

p=preliminary.

8,631

17,544

(+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

Extended mass layoffs 

lasting more than 30 days Realization rates1

Events Initial

claimants Events Initial

claimants Events Initial

claimants Events Initial

claimants

2002

January .............................................. 2,146 263,777 2,028 252,245 

February ............................................. 1,382 138,808 1,253 129,849 

March ................................................. 1,460 161,316 1,335 151,305 

First Quarter ....................................... 4,988 563,901 4,616 533,399 1,611 292,998 34.9 54.9 

April .................................................... 1,506 165,814 1,378 153,216 

May .................................................... 1,723 179,799 1,571 166,801 

June ................................................... 1,584 162,189 1,266 136,424 

Second Quarter .................................. 4,813 507,802 4,215 456,441 1,624 299,598 38.5 65.6 

July ..................................................... 2,042 245,294 1,819 226,892 

August ................................................ 1,248 128,103 1,151 119,874 

September ......................................... 1,062 124,522 957 114,736 

Third Quarter ...................................... 4,352 497,919 3,927 461,502 1,186 254,955 30.2 55.2 

October .............................................. 1,497 171,100 1,270 149,327 

November .......................................... 2,153 240,171 1,860 216,237 

December .......................................... 2,474 264,158 2,324 252,807 

Fourth Quarter ................................... 6,124 675,429 5,454 618,371 1,916 370,592 35.1 59.9 

2003

January .............................................. 2,315 225,430 2,130 210,918 

February ............................................. 1,363 124,965 1,222 116,264 

March ................................................. 1,207 113,026 1,099 104,468 

First Quarter ....................................... 4,885 463,421 4,451 431,650 1,502 297,524 33.7 68.9 

April .................................................... 1,581 161,412 1,470 152,937 

May .................................................... 1,703 174,204 1,538 160,729 

June ................................................... 1,691 157,552 1,336 127,743 

Second Quarter .................................. 4,975 493,168 4,344 441,409 1,799 346,549 41.4 78.5 

July ..................................................... 2,087 226,435 1,815 206,901 

August ................................................ 1,258 133,839 1,163 124,131 

September ......................................... 868 82,647 756 73,914 

Third Quarter ...................................... 4,213 442,921 3,734 404,946 1,190 225,609 31.9 55.7 

October .............................................. 1,523 158,240 1,265 137,706 

November .......................................... 1,438 138,543 1,234 123,524 

December p

 ........................................ 1,929 192,633 1,793 182,750 

Fourth Quarter p

 ................................. 4,890 489,416 4,292 443,980 2 1,592 2 229,014 37.1 51.6 

2004

January p

 ........................................... 2,428 239,454 2,226 220,687 

 1 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. with such events increases by 25-40 percent.

 2

 These quarterly numbers are provisional and will be revised as more p = preliminary.

Mass layoffs Total mass layoffs

Private nonfarm

Date
Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance

Industry

Mass layoff events Initial claimants for

unemployment insurance

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 

Total, private ............................................................... 2,228 1,380 1,846 2,339 217,441 133,818 185,928 228,578 

 Agriculture, forestry, fishing and hunting ................ 98 146 53 113 6,523 10,294 3,178 7,891 

 Total, private nonfarm............................................... 2,130 1,234 1,793 2,226 210,918 123,524 182,750 220,687 

 Mining ..................................................................... 20 8 21 17 1,697 568 1,937 1,329 

 Utilities .................................................................... 10 4 3 3 745 308 160 345 

 Construction ........................................................... 264 263 335 324 18,862 20,999 25,684 23,405 

 Manufacturing.......................................................... 822 408 648 848 90,244 48,419 77,915 89,551 

 Food ................................................................... 91 70 89 108 8,253 8,410 9,285 11,083 

 Beverage and tobacco products ......................... 11 9 5 9 755 938 781 834 

 Textile mills ......................................................... 42 13 31 48 7,611 1,178 4,299 6,376 

 Textile product mills ............................................ 18 8 14 19 1,890 483 2,102 1,933 

 Apparel ............................................................... 53 14 32 44 6,085 1,269 3,232 5,836 

 Leather and allied products ................................ 5 ( 2 ) 7 11 294 ( 2 ) 842 1,195 

 Wood products ................................................... 56 29 55 46 6,702 3,852 5,000 5,651 

 Paper .................................................................. 19 12 12 20 2,510 856 934 1,847 

 Printing and related support activities ................ 21 8 7 24 1,803 570 627 2,147 

 Petroleum and coal products .............................. 5 ( 2 ) 10 5 339 ( 2 ) 863 362 

 Chemicals ........................................................... 14 10 9 23 1,202 908 735 2,384 

 Plastics and rubber products .............................. 34 27 40 50 3,599 2,085 3,579 4,821 

 Nonmetallic mineral products ............................. 35 21 49 42 3,201 2,089 4,079 3,813 

 Primary metals ................................................... 48 22 33 44 5,846 2,470 3,421 4,579 

 Fabricated metal products .................................. 58 31 39 72 5,664 2,696 4,045 6,960 

 Machinery ........................................................... 52 28 24 39 5,962 4,642 3,629 3,017 

 Computer and electronic products ..................... 81 19 19 44 7,377 1,468 1,408 3,561 

 Electrical equipment and appliances .................. 30 12 20 23 2,920 2,671 4,726 2,263 

 Transportation equipment .................................. 86 51 122 114 12,126 9,696 21,061 15,107 

 Furniture and related products ........................... 36 10 14 36 4,003 856 1,607 3,541 

 Miscellaneous manufacturing ............................. 27 8 17 27 2,102 891 1,660 2,241 

 Wholesale trade ..................................................... 43 23 27 27 3,307 2,421 2,443 2,391 

 Retail trade ............................................................. 209 76 98 188 21,592 6,877 9,203 22,145 

 Transportation and warehousing ............................ 147 42 131 128 16,422 4,127 15,528 14,038 

 Information ............................................................. 69 37 40 67 6,034 5,918 3,839 9,394 

 Finance and insurance ........................................... 46 19 27 41 3,854 1,485 1,764 3,547 

 Real estate and rental and leasing ......................... 7 8 4 15 408 432 562 1,202 

 Professional and technical services ....................... 45 33 57 47 6,346 3,175 6,095 4,288 

 Management of companies and enterprises .......... ( 2 ) ( 2 ) 3 3 ( 2 ) ( 2 ) 296 895 

 Administrative and waste services ......................... 274 163 200 285 26,885 13,925 17,256 27,855 

 Educational services............................................... ( 2 ) ( 2 ) 6 8 ( 2 ) ( 2 ) 327 553 

 Health care and social assistance .......................... 26 28 27 35 1,811 2,243 2,075 2,991 

 Arts, entertainment, and recreation ........................ 29 26 20 41 2,060 1,920 1,795 3,149 

 Accommodation and food services ........................ 87 75 131 113 7,102 7,348 14,701 9,614 

 Other services, except public administration........... 27 15 12 26 3,097 1,081 955 2,992 

 Unclassified ........................................................... 2 2 3 10 172 1,646 215 1,003 

Government ................................................................ 87 58 83 89 7,989 4,725 6,705 10,876 

 Federal ................................................................... 19 9 13 26 2,303 820 1,419 2,725 

 State ....................................................................... 28 22 10 13 2,630 1,917 830 1,405 

 Local ....................................................................... 40 27 60 50 3,056 1,988 4,456 6,746 

 1

 Data were reported by all states and the District of Columbia. p = preliminary.

 2

 Data do not meet BLS or state agency disclosure standards.
Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division

Census region and division

Mass layoff events Initial claimants for

unemployment insurance

January November December January January November December January

2003 2003 2003p 2004p 2003 2003 2003p 2004p

 United States1 .................................................... 2,315 1,438 1,929 2,428 225,430 138,543 192,633 239,454 

Northeast ................................................................... 475 210 350 498 44,396 21,478 34,437 50,650 

 New England .......................................................... 68 29 66 64 6,928 2,282 6,904 5,689 

 Middle Atlantic ........................................................ 407 181 284 434 37,468 19,196 27,533 44,961 

South .......................................................................... 554 265 335 501 61,487 27,438 32,467 53,115 

 South Atlantic ......................................................... 288 135 192 244 32,616 13,822 17,903 25,490 

 East South Central ................................................. 167 35 59 153 19,318 4,212 6,510 17,176 

 West South Central ................................................ 99 95 84 104 9,553 9,404 8,054 10,449 

Midwest ...................................................................... 523 426 780 688 52,162 46,298 87,806 68,404 

 East North Central ................................................. 401 313 596 574 41,608 31,687 64,802 58,674 

 West North Central ................................................ 122 113 184 114 10,554 14,611 23,004 9,730 

West ........................................................................... 763 537 464 741 67,385 43,329 37,923 67,285 

 Mountain ................................................................ 73 51 63 63 6,151 4,606 7,025 6,292 

 Pacific .................................................................... 690 486 401 678 61,234 38,723 30,898 60,993 

 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, 

 NOTE: The States (including the District of Columbia) that comprise Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, 

the census divisions are: New England: Connecticut, Maine, Ohio, and Wisconsin; West North Central: Iowa, Kansas, Minnesota, Missouri, 

Massachusetts, New Hampshire, Rhode Island, and Vermont; Middlee Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho, 

Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, 

Delaware, District of Columbia, Florida, Georgia, Maryland, Northhh California, Hawaii, Oregon, and Washington.

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

State Mass layoff events Initial claimants for

unemployment insurance

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 ..................................................................... 119 10 27 112 14,789 1,384 3,728 13,754 

Alaska ......................................................................... 7 6 3 6 471 561 213 429 

Arizona ....................................................................... 14 4 8 7 1,292 257 551 645 

Arkansas .................................................................... 8 3 6 ( 2 ) 699 777 656 ( 2 )

California .................................................................... 579 420 346 576 48,913 32,200 25,953 51,395 

Colorado ..................................................................... 16 7 11 11 1,540 549 1,107 1,043 

Connecticut ................................................................ 16 4 13 7 1,508 312 1,166 669 

Delaware .................................................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

District of Columbia .................................................... 4 ( 2 ) 4 ( 2 ) 350 ( 2 ) 287 ( 2 )

Florida ........................................................................ 83 55 63 60 5,767 3,533 4,826 4,044 

Georgia ....................................................................... 89 18 31 92 12,406 1,771 3,354 10,525 

Hawaii ......................................................................... 8 ( 2 ) 6 4 773 ( 2 ) 506 296 

Idaho .......................................................................... 19 11 12 16 1,478 1,408 1,647 1,125 

Illinois ......................................................................... 88 57 123 88 8,794 5,785 15,006 9,610 

Indiana ........................................................................ 34 42 108 58 3,011 4,269 15,330 5,499 

Iowa ............................................................................ 34 29 46 29 3,083 3,464 5,305 2,267 

Kansas ....................................................................... 15 6 29 14 1,108 696 3,518 954 

Kentucky ..................................................................... 20 14 9 10 2,512 1,649 995 1,030 

Louisiana .................................................................... 19 23 15 14 1,240 1,773 991 908 

Maine .......................................................................... 8 4 5 14 1,201 306 424 1,463 

Maryland ..................................................................... 8 9 15 19 592 843 1,119 2,009 

Massachusetts ........................................................... 33 17 24 30 3,162 1,373 2,568 2,375 

Michigan ..................................................................... 22 48 135 171 1,982 5,058 12,275 16,615 

Minnesota ................................................................... 33 44 51 30 3,026 3,849 6,342 2,688 

Mississippi .................................................................. 4 3 8 6 228 165 450 384 

Missouri ...................................................................... 30 22 45 26 2,351 5,651 6,180 2,422 

Montana ..................................................................... 3 5 7 4 204 428 918 270 

Nebraska .................................................................... 7 7 10 11 539 412 1,411 984 

Nevada ....................................................................... 15 14 20 14 1,276 1,156 2,351 2,225 

New Hampshire .......................................................... 5 ( 2 ) ( 2 ) ( 2 ) 623 ( 2 ) ( 2 ) ( 2 )

New Jersey ................................................................. 49 43 76 73 4,372 5,985 6,895 7,191 

New Mexico ................................................................ 5 4 3 6 309 212 278 328 

New York .................................................................... 188 59 88 194 18,806 5,648 9,448 24,376 

North Carolina ............................................................ 26 23 23 18 3,215 3,635 1,857 1,829 

North Dakota .............................................................. ( 2 ) 4 ( 2 ) ( 2 ) ( 2 ) 474 ( 2 ) ( 2 )

Ohio ............................................................................ 151 75 117 141 16,689 6,464 10,693 15,169 

Oklahoma ................................................................... 15 3 12 13 2,225 406 1,278 1,517 

Oregon ....................................................................... 66 26 26 70 7,672 3,058 2,498 6,681 

Pennsylvania .............................................................. 170 79 120 167 14,290 7,563 11,190 13,394 

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

 ) 12 5 310 ( 2 ) 1,775 332 

South Carolina ............................................................ 50 7 17 26 5,954 547 2,713 3,563 

South Dakota .............................................................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

Tennessee .................................................................. 24 8 15 25 1,789 1,014 1,337 2,008 

Texas .......................................................................... 57 66 51 74 5,389 6,448 5,129 7,571 

Utah ............................................................................ ( 2 ) 6 ( 2 ) 5 ( 2 ) 596 ( 2 ) 656 

Vermont ...................................................................... ( 2 ) ( 2 ) 10 5 ( 2 ) ( 2 ) 794 573 

Virginia ....................................................................... 24 16 34 24 3,266 2,644 3,372 3,061 

Washington ................................................................ 30 32 20 22 3,405 2,751 1,728 2,192 

West Virginia .............................................................. 3 5 3 ( 2 ) 174 556 176 ( 2 )

Wisconsin ................................................................... 106 91 113 116 11,132 10,111 11,498 11,781 

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

Puerto Rico ................................................................. 14 – 6 5 1,371 – 486 511 

 1 See footnote 1, table 2. p

 = preliminary.

2

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