Internet address:  http://stats.bls.gov/newsrels.htm
Technical information:  (202) 606-6396    USDL 98-461


                                          For release: 10:00 A.M. EST
Media contact:                 606-5902   Thursday, November 19, 1998


                        MASS LAYOFFS IN AUGUST 1998


   In August 1998, there were 553 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 49,070. Although
the number of layoff events and initial claimants for unemployment
insurance were lower this August than in 1997, this was due in part to a
calendar effect.  This year, 4 weeks of mass layoff activities were
reported in August versus 5 weeks in 1997. (See Technical Note.)  The total
of layoff events from January through August 1998, at 10,148, was about the
same as a year earlier (10,208), while the total number of initial
claimants, at 1,123,952, was slightly higher than in January-August 1997
(1,072,104).  (See table 1.)
   
   The monthly series in this release covers 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.  See the
Technical Note for more detailed definitions.
   
   Because the 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.  For
example, 3,641 layoff events involving 424,018 initial claimants for
unemployment insurance occurred in April, May, and June of 1998 combined.
The second-quarter 1998 figures for mass layoffs lasting more than 30 days,
however, were 1,500 events and 260,837 claimants.  Forty-one percent of all
mass layoffs in the April-June period lasted for more than a month. (See
table 1.)  In all quarters for which data are available, the proportion of
mass layoffs that became "extended" mass layoffs varied from about 31 to 47
percent.
   
Industry Distribution
   
   In August 1998, manufacturing industries accounted for 43 percent of all
mass layoff events and 52 percent of the initial claims filed.
Manufacturing industries that had the highest numbers of initial claimants
were electronic and electrical equipment (3,834), primarily in
semiconductors and related devices; industrial machinery and equipment
(3,400), mostly in refrigeration and heating equipment; and food products
(3,350), particularly in dehydrated fruits, vegetables, and soups and bread
and cake.  (See table 3.)
   
                                  - 2 -
   
   In nonmanufacturing industries, services accounted for 20 percent of all
mass layoff events and 15 percent of all initial claims filed.  The layoffs
were predominantly in business services (particularly in help supply
services) and in health services (mostly in general medical and surgical
hospitals).   Layoffs in help supply services are more likely than those in
other industries to last less than 30 days.  Retail trade contributed 10
percent of layoff events and 8 percent of initial claimants during the
month, largely in general merchandise stores.  Transportation and public
utilities accounted for 5 percent of layoff events and 8 percent of initial
claimants during the month, primarily in communications.
   
   Compared with August 1997, the largest increases in initial claims
occurred in communications (1,753) and paper and allied products (1,253).
Substantially fewer claims occurred in transportation by air (-13,903) than
in last August, when a labor dispute generated indirect layoffs.  Other
significant over-the-year reductions were in transportation equipment
(-8,202) and business services (-5,136).
   
State Distribution
   
   Among the 50 states and the District of Columbia reporting data for
August, California had the largest number of initial claims filed in mass
layoff events (6,669), primarily in business services, followed by Texas
(5,158), Pennsylvania (4,200), and Florida (3,282).  These four states
accounted for about 49 percent of all layoff events and 39 percent of all
initial claims. (See table 2.)
   
   From August 1997 to August 1998, Iowa reported the largest over-the-year
rise in initial claims (870), primarily in electronic and other electrical
equipment, followed by North Carolina (512), and Louisiana (348).
California had the largest over-the-year decline in initial claims
(-11,868), mostly in business services.
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: 202-606-STAT; TDD
phone: 202-606-5897; TDD message referral phone number:  1-800-326-2577.
 
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 1996 to
August 1998
 
                                                        Extended mass layoffs         
                                                       lasting more than 30 days     
            Date                 Total mass layoffs                                 Event                          
                                                                                 realization 
                               Events        Initial       Events     Initial       rate(1)
                                            claimants                claimants
                  
            1996

 July ......................... 1,534         192,155     
 August .......................   918          83,166     
 September ....................   513          42,376    

 Third quarter ................ 2,965         317,697          1,020      200,423   34.4      

 October ...................... 1,289         131,850     
 November ..................... 1,433         130,774     
 December ..................... 1,824         204,123     

 Fourth quarter ............... 4,546         466,747          1,915      384,161   42.1       

              1997              

 January ...................... 2,139         212,860     
 February .....................   755          63,352     
 March ........................   783          84,069     

 First quarter ................ 3,677         360,281          1,317      253,424   35.8     

 April ........................ 1,269         152,168     
 May .......................... 1,152         101,476     
 June ......................... 1,238         121,256
     
 Second quarter ............... 3,659         374,900          1,574      319,617   43.0     

 July ......................... 1,899         237,410     
 August .......................   973          99,513     
 September ....................   548          59,062     

 Third quarter ................ 3,420         395,985          1,077      216,474   31.5     

 October ...................... 1,414         139,297     
 November ..................... 1,156         100,051     
 December ..................... 1,634         172,029     

 Fourth quarter ............... 4,204         411,377          1,677      311,536   39.9     

              1998              

 January ...................... 2,360         255,203     
 February .....................   970          81,455     
 March ........................   762          78,210     

 First quarter................. 4,092         414,868          1,289      237,528   31.5 
    
 April ........................ 1,253         132,476     
 May .......................... 1,180         107,952     
 June ......................... 1,208         183,590

 Second quarter ............... 3,641         424,018          1,500      260,837   41.2    

 July ......................... 1,862         235,996     
 August .......................   553          49,070     

   1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days.          
   
                     
 Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance,
 August 1997 and August 1998

                                                                            Initial claimants for
                                               Mass layoff events           unemployment insurance
                                                                            
                     State

                                               August       August         August          August
                                                1997         1998           1997            1998 

  Total( 1 )..................................   973          553          99,513          49,070     

 Alabama ..................................... ( 2 )            6           ( 2 )             358     
 Alaska ...................................... ( 2 )        ( 2 )           ( 2 )           ( 2 )
 Arizona .....................................     7            5             839             435     
 Arkansas ....................................    10           10             841             828     
 California ..................................   297          124          18,537           6,669     
 Colorado .................................... ( 2 )            3           ( 2 )             169     
 Connecticut .................................     5        ( 2 )             355           ( 2 )
 Delaware .................................... ( 2 )            -           ( 2 )               -
 District of Columbia ........................     -            -               -               -
 Florida .....................................    47           38           3,235           3,282     
 Georgia .....................................    13            7           1,563             619     
 Hawaii ......................................     6        ( 2 )             504           ( 2 )
 Idaho .......................................     9            8           1,701             925     

 Illinois ....................................    37           15           8,907           2,017     
 Indiana .....................................    18           14           3,013           1,331     
 Iowa ........................................     8            9             721           1,591     
 Kansas ......................................     8            3           1,397             261     
 Kentucky ....................................     9        ( 2 )           2,087           ( 2 )
 Louisiana ...................................     7           11             464             812     
 Maine .......................................     6            5             430             358     
 Maryland ....................................    10        ( 2 )           2,022           ( 2 )
 Massachusetts ...............................    12            6           2,062           1,014     
 Michigan ....................................    25            4           4,325             347     
 Minnesota ...................................    10            5           1,468             564     
 Mississippi ................................. ( 2 )            6           ( 2 )             336     
 Missouri ....................................    27           10           3,565           1,423     
 
 Montana .....................................     -            -               -               -
 Nebraska ....................................     -        ( 2 )               -           ( 2 )
 Nevada ......................................     4        ( 2 )             293           ( 2 )
 New Hampshire ...............................     3        ( 2 )             197           ( 2 ) 
 New Jersey ..................................    21           14           3,051           2,016     
 New Mexico .................................. ( 2 )        ( 2 )           ( 2 )           ( 2 )
 New York ....................................    31           30           2,533           2,563     
 North Carolina ..............................     7           13             564           1,076     
 North Dakota ................................ ( 2 )            -           ( 2 )               -
 Ohio ........................................    24           18           2,603           1,584     
 Oklahoma ....................................     4            3             288             186     
 Oregon ......................................    12           10           1,201           1,310     
 Pennsylvania ................................    96           52           8,285           4,200     

 Rhode Island ................................     4        ( 2 )             325           ( 2 )
 South Carolina ..............................    20           19           2,437           1,889     
 South Dakota ................................ ( 2 )            -           ( 2 )               -
 Tennessee ...................................    19            3           1,603             259     
 Texas .......................................    74           56           8,289           5,158     
 Utah ........................................     3        ( 2 )             492           ( 2 )
 Vermont .....................................     -        ( 2 )               -           ( 2 )
 Virginia ....................................    16            6           2,574             549     
 Washington ..................................    14            6           1,616           1,801     
 West Virginia ............................... ( 2 )            3           ( 2 )             223     
 Wisconsin ...................................    37           15           3,305           1,406     
 Wyoming .....................................     -            -               -               -

 Puerto Rico .................................    12            6           1,765             612    

    1  Data were reported by all states and the District of Columbia.                                
    2  Data do not meet BLS or state agency disclosure standards.                                       
    NOTE:  Data for total mass layoff events and initial claimants for unemployment insurance       
have been revised for August 1997 due to the inclusion of new data for Louisiana and Oklahoma. 
Dash represents zero.
 
 Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance,
 August 1997 and August 1998
                                                                                           Initial claimants for
                                                               Mass layoff events          unemployment insurance
                                                                                           
                           Industry
                                                               August       August         August          August
                                                                1997         1998           1997            1998

      Total( 1 )..............................................   973          553          99,513          49,070     

 Total, private ..............................................   927          536          95,440          47,792     

   Agriculture ...............................................    49           26           2,668           1,264     
   Nonagriculture ............................................   859          502          90,971          45,903     
     Manufacturing ...........................................   366          238          42,950          25,516     
       Durable goods .........................................   208          122          27,456          13,642     
         Lumber and wood products ............................     8            8             654             530     
         Furniture and fixtures ..............................    15            5           1,755             813     
         Stone, clay, and glass products .....................     8            3             675             189     
         Primary metal industries ............................    20           14           1,350           1,219     
         Fabricated metal products ...........................    28           15           2,530           1,129     
         Industrial machinery and equipment ..................    38           22           4,590           3,400     
         Electronic and other electrical equipment ...........    37           33           4,292           3,834     
         Transportation equipment ............................    35           12          10,039           1,837     
         Instruments and related products ....................     7            6             617             291     
         Miscellaneous manufacturing industries ..............    12            4             954             400     

       Nondurable goods ......................................   158          116          15,494          11,874     
         Food and kindred products ...........................    60           41           6,727           3,350     
         Tobacco products ....................................     -        ( 2 )               -           ( 2 )
         Textile mill products ...............................    16           16           2,139           2,468     
         Apparel and other textile products ..................    43           23           3,658           1,629     
         Paper and allied products ...........................     3           11             209           1,462     
         Printing and publishing .............................    12            8             993             656     
         Chemicals and allied products .......................     5        ( 2 )             387           ( 2 )
         Petroleum and coal products .........................     -            -               -               -
         Rubber and miscellaneous plastics products ..........    13            9             886           1,156     
         Leather and leather products ........................     6            6             495             569     

     Nonmanufacturing ........................................   493          264          48,021          20,387     
       Mining ................................................ ( 2 )            4           ( 2 )             363     
       Construction ..........................................    76           40           4,979           2,649     
       Transportation and public utilities ...................    73           30          17,381           4,158     
       Wholesale and retail trade ............................   112           70           8,959           5,075     
          Wholesale trade ....................................    23           16           1,823           1,042     
          Retail trade .......................................    89           54           7,136           4,033     
       Finance, insurance, and real estate ................... ( 2 )            8           ( 2 )             585     
       Services ..............................................   204          112          14,874           7,557     

   Not identified ............................................    19            8           1,801             625     

 Government ..................................................    46           17           4,073           1,278     
   Federal ...................................................    12            3           1,469             341     
   State .....................................................    14            7           1,261             558     
   Local .....................................................    20            7           1,343             379     


    1  Data were reported by all states and the District of Columbia.                          
    2  Data do not meet BLS or state agency disclosure standards.                                      
    NOTE:  Data for total mass layoff events and initial claimants for unemployment insurance      
 have been revised for August 1997 due to the inclusion of new data for Louisiana and Oklahoma.  Dash represents zero.