Technical information:  (202) 691-6392     USDL 04-1038
http://www.bls.gov/mls/
                                           For release:  10:00 A.M. EDT
Media contact:                691-5902     Thursday, June 10, 2004


              EXTENDED MASS LAYOFFS ASSOCIATED WITH DOMESTIC
               AND OVERSEAS RELOCATIONS, FIRST QUARTER 2004

   
   Questions on job loss related to the movement of work were added to 
the Mass Layoff Statistics program in January 2004 by the Bureau of Labor
Statistics of the U.S. Department of Labor.  Data for the first quarter 
of 2004 are included in the release.  In the future, these data will be
included in the regular quarterly news release on Extended Mass Layoffs.

   Extended mass layoffs and separations associated with the movement of
work, domestically or overseas, reflect job loss at companies employing at
least 50 workers where at least 50 people filed for unemployment insurance
during a five-week period and the layoff lasted more than 30 days.  The
extended mass layoff statistics and movement of work measures, therefore,
do not reflect layoffs of less than 50 at these companies, nor do they
capture layoffs occurring at establishments with less than 50 workers.
(About one-third of all private nonfarm mass layoff events extend for more
than 30 days.)  Similarly, these data do not cover situations in which
firms initiate or transfer work to new locations when there are no layoffs
involved.  (See the Technical Note for additional information.)
   
   Of the 239,361 private sector nonfarm workers who were separated from
their jobs for at least 31 days in the first quarter of 2004, the separa-
tions of 4,633 workers were associated with the movement of work outside 
of the country, according to preliminary data.  Domestic relocation of 
work--both within the company and to other companies--affected 9,985
workers. (See table A.)

   From January to March 2004, job loss associated with the relocation 
of work was reported in 119 layoff events, resulting in the separation of
16,021 workers.  (See table B.)  Events associated with movement of work
accounted for about 14 percent of all layoff events and 9 percent of se-
parations where the reason for the layoff was other than seasonal or vaca-
tion.  Three out of four events (90 out of 119) associated with movement 
of work occurred among establishments within the same company.  In more 
than 7 out of 10 cases, the work activities were reassigned to places else-
where in the U.S.  In the 29 events in which work activities were reassigned 
to another company under contractual arrangements, half of the instances in-
volved relocation of work outside the U.S. and half to companies within the 
U.S.
   
                                  - 2 -

Table A. Extended mass layoff events and separations by selected
employer action, first quarter 2004
----------------------------------------------------------------------
                                    |               |                   
               Action               | Layoff events |   Separations
                                    |               |                   
------------------------------------|---------------|-----------------
                                    |               |
Total, private nonfarm sector.......|     1,204     |     239,361
                                    |               |
  Total, excluding seasonal and     |               |
    vacation events 1/..............|       869     |     182,456
                                    |               |
    Total with movement of work 2/..|       119     |      16,021
                                    |               |
      Overseas relocations..........|        34     |       4,633
        Within company..............|        21     |       2,976
        Different company...........|        13     |       1,657
                                    |               |
      Domestic relocations..........|        79     |       9,985
        Within company..............|        65     |       8,191
        Different company...........|        14     |       1,794
 ---------------------------------------------------------------------                                   
   1  The questions on movement of work were not asked of employers
when the reason for layoff was either seasonal work or vacation period.
   2  Detail does not add to group total due to incomplete information.
     
   Among the 119 events with reported relocation of work, 51 percent were
permanent closures of worksites, which affected 10,019 workers.  In compar-
ison, for the 1,204 total layoff events reported in the first quarter of 
2004, only 17 percent involved permanent closure of worksites.
   
   In establishments that had layoffs related to the movement of work, the
average size of a layoff was 135 workers.  This compares with an average of
199 for all establishments that had extended mass layoffs in the first quar-
ter of 2004.
   
   Sixty-eight percent of the layoff events involving the movement of work
and 65 percent of the laid-off workers were from manufacturing industries
during the first quarter of 2004.  Among all private nonfarm extended lay-
offs, manufacturing accounted for  32 percent of the events and 24 percent 
of the separations.  (See table 1.)
   
   Internal company restructuring (bankruptcy, business ownership change,
financial difficulty, and reorganization) accounted for 70 percent of lay-
off events associated with work relocation and resulted in 11,600 separa-
tions during the first quarter.  (See table 2.)  Most of these were due to 
reorganization within the company.  In contrast, only 25 percent of the mass 
layoff events in the total private nonfarm economy were because of internal 
company restructuring.
   
   The Midwest accounted for the largest proportion of workers in extended
mass layoff events associated with the movement of work (34 percent) in the
first quarter of 2004, followed by the South (31 percent), the West (27 per-
cent), and the Northeast (8 percent).  (See table 3.)  For all extended mass 
layoff events, separations were concentrated in the West (43 percent), fol-
lowed by the Midwest (29 percent), the South (16 percent), and the Northeast 
(12 percent).
   
                                  - 3 -
   
Table B. Extended mass layoff events and separations by movement
of work, first quarter 2004
----------------------------------------------------------------------
                                    |               |
          Type of movement          | Layoff events |   Separations
                                    |               |
------------------------------------|---------------|-----------------
                                    |               |
Total, private nonfarm sector.......|     1,204     |     239,361
                                    |               |
  Total, excluding seasonal         |               |
    and vacation events 1/..........|       869     |     182,456
                                    |               |
    Total with movement of work 1/..|       119     |      16,021
                                    |               |
      Within company 2/.............|        90     |      11,917
        Domestic....................|        65     |       8,191
        Out of country..............|        21     |       2,976
                                    |               |
      Different company 2/..........|        29     |       4,104
        Domestic....................|        14     |       1,794
        Out of country..............|        13     |       1,657
----------------------------------------------------------------------
  1  The questions on movement of work were not asked of employers 
when the reason for layoff was either seasonal work or vacation period.
  2  Detail does not add to group total due to incomplete information.

   
                                  - 4 -

Technical Note
 
 
   The Mass Layoff Statistics (MLS) program is a federal-state program
which identifies, describes, and tracks the effects of major job cutbacks,
using data from each state's unemployment insurance database.  Establish-
ments which have at least 50 initial claims filed against them during a 
consecutive 5-week period are contacted by the state agency to determine 
whether these separations are of at least 31 days duration, and, if so, in-
formation is obtained on the total number of persons separated and the rea-
sons for these separations.  Establishments are identified according to in-
dustry classification and location.  Because of the employer contact com-
ponent, the BLS decided to use the MLS program as a vehicle for collecting 
additional information on offshoring and outsourcing associated with job 
loss, by adding questions that address movement of work.
   
Definitions
   
   Establishment.  A unit at a single physical location at which predom-
inantly one type of economic activity is conducted.
   
   Extended layoff event.  Fifty or more initial claims for unemployment
insurance benefits from an establishment during a 5-week period, with at
least 50 workers separated for more than 30 days.
   
   Layoff.  The separation of persons from an employer as part of a mass
layoff event.  (See below.)  Such layoffs involve both persons subject to
recall and those who are terminated by the establishment.
   
   Mass layoff.  Fifty or more initial claims for unemployment insurance
benefits from an establishment beginning in a given month, regardless of
duration.
   
   Worksite  closure.  The complete closure of either multi-unit or single-
unit establishments or the partial closure of a multi-unit establishment
where entire worksites affected by layoffs are closed or planned to be
closed.
   
Movement of work concepts and questions
   
   The term "moving work" means that the company experiencing the layoff
has reassigned work activities that were performed at a worksite by the
company's employees (1) to another worksite within the company; (2) to
another company under formal arrangements at the same worksite; or (3) to
another company under formal arrangements at another worksite.  The type 
of work activities subject to movement can include accounting, customer
service, cleaning, warehousing, etc.
   
   "Overseas relocation" is the movement of work from within the U.S. to
locations outside of the U.S.  "Overseas relocation" can occur within the
same company and involve movement of work to a different location of that
company outside of the U.S., or to a different company altogether.
   
                                  - 5 -
   
   "Domestic relocation" is the movement of work to other locations inside
the U.S., either within the same company or to a different company.
   
   "Overseas relocation" and "domestic relocation" are no longer used in
the same way as they were in earlier extended mass layoff news releases.
Therefore, the data presented in this news release are not comparable to
those that were presented in earlier news releases.
   
   Questions on movement of work and location are asked for all identified
layoff events when the reason for separation is other than "seasonal work"
or "vacation period."  Seasonal and vacation layoff events were excluded
because movement of work appears unlikely.
   
   Questions on movement of work are asked after the analyst verifies that
a layoff in fact occurred and lasted more than 30 days, and obtained the
total number of workers separated from jobs, the date the layoff began, and
the economic reason for the layoff.  If the reason for layoff is other than
seasonal or vacation, the employer was asked the following:
   
   (1) "Did this layoff include your company moving work from this loca-
tion(s) to a different geographic location(s) within your company?"
   
   (2) "Did this layoff include your company moving work that was performed 
in-house by your employees to a different company, through contractual ar-
rangements?"
   
   A "yes" response to either question is followed by:
   
   "Is the location inside or outside of the U.S.?" and "How many of the
layoffs were a result of this relocation?"
   
   Layoff actions are classified as "overseas relocation" if the employer
responds "yes" to questions 1 and/or 2, and indicates that the location(s)
was outside of the U.S.  Domestic relocation is determined if the employer
responds "yes" to questions 1 and/or 2 and indicates that the location(s)
was within the U.S.
   
   After asking the movement of work questions, the employer contact con-
tinues and responses are obtained for questions on recall expectations and 
open/closed status of the worksite.
   
Reliability of the data
   
   The identification of establishments and layoff events in the MLS
program and associated characteristics of claimants is based on ad-
ministrative data on covered establishments and unemployment insurance
claims, and, therefore, is not subject to issues associated with sampling
error.  Nonsampling errors such as typographical errors may occur but are
not likely to be significant.  While the MLS establishments and layoff
events are not subject to sampling error, and all such employers are asked
the employer contact questions, the employer responses are subject to non-
sampling error.  Nonsampling error can occur for many reasons, including
the inability to obtain information for all respondents, inability or un-
willingness of respondents to provide correct information, and errors made 
in the collection or processing of the data.  For the first quarter of 2004, 
outright refusal to participate in the employer contact accounted for 7.2 per-
cent of all private nonfarm events.
   
Other information
   
   Information in this release will be made available to sensory impaired
individuals upon request.  Voice phone:  202-691-5200;  TDD message referral 
phone:  1-800-877-8339.
   
   
   
   
Table 1. Industry distribution:  Extended mass layoff events and separations associated
with the movement of work, first quarter 2004

                                                     Layoff events           Separations  
                                          
                   Industry                                  Associated	            Associated
                                                    Total     with the	   Total     with the
                                                             movement of 	    movement of
                                                                work	               work

          Total, private nonfarm .................  1,204        108      239,361     16,021
   
   Mining ........................................     14          -        1,421          -
   Utilities .....................................      5      ( 1 )          557      ( 1 )
   Construction ..................................    229          -       24,549          -
   Manufacturing .................................    386         73       57,616     10,438                  
       Food ......................................     70          7       11,005      1,308         
       Beverage and tobacco products .............     10      ( 1 )        1,694      ( 1 )
       Textile mills .............................     14          3        2,022        554
       Textile product mills .....................      7      ( 1 )        1,045      ( 1 )
       Apparel ...................................     16          5        2,251      1,189
       Leather and allied products ...............      4      ( 1 )          653      ( 1 )
       Wood products .............................     14      ( 1 )        1,661      ( 1 )
       Paper .....................................     11          4        1,599        227
       Printing and related support activities ...     13          3        1,732        122
       Petroleum and coal products ...............      5          -          392          -

       Chemicals .................................     14          4        2,055        634
       Plastics and rubber products ..............     18          5        2,452        857
       Nonmetallic mineral products ..............     21          -        2,686          -
       Primary metal .............................     13          -        2,215          -
       Fabricated metal products .................     20          3        2,158        340
       Machinery .................................     20          6        2,135        870
       Computer and electronic products ..........     32          7        3,912        785
       Electrical equipment and appliance ........     13          6        2,312      1,027
       Transportation equipment ..................     39          7        8,874        985
       Furniture and related products ............     19          4        2,965        497
       Miscellaneous manufacturing ...............     13          4        1,798        470

   Wholesale trade ...............................     28          4        3,579        915
   Retail trade ..................................    132          4       86,884        362
   Transportation and warehousing ................     34          4        6,189      1,075
   Information ...................................     44          7        7,837      1,449
   Finance and insurance .........................     46          5        7,207        637
   Real estate and rental and leasing ............  ( 1 )          -        ( 1 )          -
   Professional and technical services ...........     31      ( 1 )        3,363      ( 1 )
   Management of companies and enterprises .......      5      ( 1 )          492      ( 1 )
   Administrative and waste services .............    131          4       21,067        597
   Educational services ..........................  ( 1 )          -        ( 1 )          -
   Health care and social assistance .............     29      ( 1 )        4,175      ( 1 )
   Arts, entertainment, and recreation ...........     14          -        1,238          -
   Accommodation and food services ...............     53          -        9,110          -
   Other services, except public administration ..     15      ( 1 )        2,955      ( 1 )

 Unknown..........................................      2          -          229          - 
    
    1 Data do not meet BLS or state agency disclosure standards.
    NOTE: Dash represents zero.  All data in this table are preliminary.
Table 2. Reason for layoff:  Extended mass layoff events and separations associated with
the movement of work, first quarter 2004

                                       Layoff events           Separations  
                                          
            Industry                         Associated	             Associated
                                     Total    with the	    Total     with the
                                             movement of 	     movement of   
                                                work	                 work

   Total, private nonfarm ........   1,204        108      239,361       16,021

Automation .......................   ( 1 )      ( 1 )        ( 1 )        ( 1 )
Bankruptcy .......................      28          -        8,422            -
Business ownership change ........      31          5        4,217          512
Contract cancellation ............      29      ( 1 )        4,238        ( 1 )          
Contract completed ...............     170      ( 1 )       51,795        ( 1 )          
Environment-related ..............       -          -            -            -
Financial difficulty .............      84         12       15,755        2,394
Import competition ...............      14          3        1,182          219
Labor dispute ....................       4          -       21,293            -
Material shortage ................   ( 1 )          -        ( 1 )            -
Model changeover .................   ( 1 )          -        ( 1 )            -

Natural disaster .................       -          -            -            -
Plant or machine repair ..........   ( 1 )          -        ( 1 )            -
Product line discontinued ........       8      ( 1 )        1,675        ( 1 )
Reorganization within company ....     162         59       26,982        8,736
Seasonal work ....................     332      ( 2 )       56,478        ( 2 )
Slack work .......................     146          4       16,999          291
Vacation period ..................       3      ( 2 )          427        ( 2 )
Weather-related ..................      15          -        1,382            -
Other ............................      56         21       11,004        3,410
Not reported .....................     115          -       15,656            -


    1 Data do not meet BLS or state agency disclosure standards.
    2 The questions on movement of work were not asked of employers when the reason for layoff
 was either seasonal work or vacation period. 
    NOTE: Dash represents zero.  All data in this table are preliminary.
Table 3. Census region and division:  Extended mass layoff events and separations associated
with the movement of work, first quarter 2004

		      
			       Layoff events           Separations  
				  
	Industry                     Associated              Associated
			     Total    with the      Total     with the
				     movement of             movement of
					work                     work

			 
	United States  ..    1,204         108     239,361      16,021

Northeast ...............      215          11      28,978       1,327                           

    New England .........       56       ( 1 )       7,355       ( 1 )
    Middle Atlantic .....      159       ( 1 )      21,623       ( 1 )

South ...................      246          30      38,832       5,011          
    
    South Atlantic ......      155          17      25,267       2,355          
    East South Central ..       28           5       3,889         956
    West South Central ..       63           8       9,676       1,700

Midwest .................      430          38      68,214       5,403
    
    East North Central ..      359          32      57,697       4,216
    West North Central ..       71           6      10,517       1,187

West ....................      313          29     103,337       4,280
    
    Mountain ............       33       ( 1 )       5,694       ( 1 )
    Pacific .............      280       ( 1 )      97,643       ( 1 )



    1 Data do not meet BLS or state agency disclosure standards. 
    NOTE: The States (including the District of Columbia) that comprise the census divisions
 are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and 
 Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware,
 District of Columbia, Florida, Georgia, Maryland, North 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.  All data in this table are preliminary.