Technical information:   (202) 691-6392      USDL 04-1104
http://www.bls.gov/mls/

                                             For release: 10:00 A.M. EDT
Media contact:                 691-5902      Wednesday, June 23, 2004
     
     
                                     
                         MASS LAYOFFS IN MAY 2004
     
  In May 2004, employers took 988 mass layoff actions, 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 87,501.  (See table 1.)  Both the
number of events and initial claims were sharply lower than a year ago.
The number of mass layoff events was at its lowest level for any May since
2000, and the number of associated initial claims was at its lowest level
for any May since 1996.  (May 2004 contained 4 weeks for possible mass
layoffs, compared with 5 weeks in each May of the prior 2 years.)  From
January through May 2004, the total number of events, at 6,735, and of
initial claims, at 661,024, were lower than in January-May 2003 (8,169
and 799,037, respectively).
     
Industry Distribution
     
  Food service contractors, with 5,310 initial claims, and temporary help
services, with 5,256 initial claims, together accounted for 12 percent of
all initial claims in May.  The 10 industries reporting the highest number
of mass-layoff initial claims accounted for 25,796 initial claims in May,
29 percent of the total.  (See table A.)
     
  The manufacturing sector had 22 percent of all mass layoff events and
25 percent of all initial claims filed in May--the lowest shares for any May
since 1995, when the monthly series began.  A year ago, manufacturing re-
ported 29 percent of events and 35 percent of initial claims.  Within manu-
facturing, the number of claimants was highest in food processing (3,897),
followed by transportation equipment (2,911) and textile product mills (2,820).
(See table 2.)
     
  The administrative and waste services sector accounted for 12 percent
of events and 11 percent of initial claims filed in May, with layoffs mostly
in temporary help services.  Eight percent of all layoff events and 9 percent
of initial claims filed during the month were in accommodation and food ser-
vices, mainly among food service contractors.  Retail trade accounted for
9 percent of events and initial claims, largely in general merchandise stores.
Healthcare and social assistance accounted for 7 percent of events and 6 per-
cent of initial claims during the month, primarily in child day care services.
An additional 8 percent of events and 6 percent of initial claims were in con-
struction, mostly among specialty trade contractors.
     
  Government establishments accounted for 7 percent of events and initial
claims filed during the month.
     
  Compared with May 2003, the largest decreases in initial claims were
reported in transportation equipment manufacturing (-10,432) and adminis-
trative and waste services (-9,920).  The largest over-the-year increase in
initial claims was reported in textile product mills (+1,872).
     
                                  - 2 -

Table A.  Industries with the largest mass-layoff initial claims in
May 2004p
------------------------------------------------------------------------------
                                           |          |        May peak
                 Industry                  | Initial  |-----------------------
                                           |  claims  |  Year  |Initial claims
-------------------------------------------|----------|--------|--------------
                                           |          |        |
Food service contractors...................|  5,310   |  1998  |     7,267
Temporary help services....................|  5,256   |  2002  |    16,992
Child day care services....................|  3,484   |  2002  |     3,894
Other household textile product mills......|  2,567   |  2004  |     2,567
Professional employer organizations........|  1,850   |  2003  |     3,446
Other social advocacy organizations........|  1,846   |  2002  |     2,500
Supermarkets and other grocery stores......|  1,550   |  1996  |     4,492
School and employee bus transportation.....|  1,326   |  2003  |     3,747
Motion picture and video production........|  1,308   |  1999  |     8,985
Full-service restaurants...................|  1,299   |  2002  |     1,319
------------------------------------------------------------------------------
  p=preliminary.


Geographic Distribution
     
  Among the four regions, the highest number of initial claims in May due to
mass layoffs was reported in the South, 27,666.  (See table 3.)  Administra-
tive and support services and textile product mills accounted for 23 percent
of all initial claims in that region during the month.  This is the third time
that the South reported the most mass-layoff initial claims; the others were
in May 1995 and August 1995.  The West region was next, with 25,629 initial
claims, followed by the Midwest, with 22,294, and the Northeast, with 11,912.

  The number of initial claimants in mass layoffs declined over the year
in all four regions.  The largest decrease was in the West (-26,782), followed
closely by the Midwest (-24,107).  Each of the nine geographic divisions had
over-the-year decreases in the number of initial claims associated with mass
layoffs, with the largest decrease in the Pacific division (-24,258).
     
  Among the states, California recorded the highest number of initial claims
filed in mass layoff events in May (20,148), mostly in administrative and sup-
port services.  Illinois reported 5,640 initial claims, followed by Florida
(5,152), Texas (4,683), and Pennsylvania (3,789).  These five states accounted
for 49 percent of all layoff events and 45 percent of all initial claims for
unemployment insurance.  (See table 4.)
     
  California reported the largest over-the-year decrease in the number
of initial claims (-21,709), followed by New York (-8,027), Texas (-7,852),
and Pennsylvania (-7,104).  The largest over-the-year increase occurred in
New Jersey (+853).
     
  From January to May, California reported 171,449 mass layoff initial claims,
26 percent of the national total.  The states with the next largest number of
claims over this period were New York (52,843), Pennsylvania (37,875), and
Ohio (32,594).

                                  - 3 -

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.
For private nonfarm establishments, information on the length of the layoff
is obtained later and issued in a quarterly release that reports on mass lay-
offs lasting more than 30 days (referred to as "extended mass layoffs").  The
quarterly release 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 Techni-
cal Note for more detailed definitions.


                      ______________________________
     

  The report on Mass Layoffs in June 2004 is scheduled to be released on
Thursday, July 22, 2004.





                                   - 4 -                                           

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 establish-
ments 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 long-
er, 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 ter-
minated 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 indi-
viduals 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, April 2002 to May 2004

                                                                                     Private nonfarm                            

                                Total mass layoffs                                Extended mass layoffs          Realization     
             Date                                       Mass layoffs            lasting more than 30 days          rates(1)   
													       
                                          Initial               Initial                         Initial                  Initial  
                                Events   claimants    Events   claimants          Events       claimants     Events     claimants 
             2002           

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         297,607       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         348,890       41.4         79.0

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         227,568       31.9         56.2

October ....................     1,523     158,240     1,265     137,706 
November ...................     1,438     138,543     1,234     123,524 
December ...................     1,929     192,633     1,793     182,750 

Fourth Quarter .............     4,890     489,416     4,292     443,980          1,690         325,765       39.4         73.4

             2004           

January ....................     2,428     239,454     2,226     220,687 
February ...................       941      84,201       832      76,577 
March ......................       920      92,554       847      87,782 

First Quarter ..............     4,289     416,209     3,905     385,046   (2)(p) 1,204  (2)(p) 165,272    (p)30.8      (p)42.9

April (p) ..................     1,458     157,314     1,316     142,657 
May (p) ....................       988      87,501       878      78,786 


    1 The event realization rate is the percentage of all private nonfarm mass layoff events lasting more than 30 days. The initial
claimant realization rate is the percentage of all private nonfarm mass layoff initial claimants associated with layoffs lasting
more than 30 days. 
    2 These quarterly numbers are provisional and will be revised as more data on these layoffs become available. Experience
suggests that the number of extended mass layoff events is generally revised upwards by less than 10 percent and the number of
initial claimants associated with such events increases by 25-40 percent. 
    p = preliminary. 




Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance
                                                 
                                                                                                    Initial claimants for          
                                                             Mass layoff events                     unemployment insurance         
                     Industry                    

                                                     May      March    April     May        May         March     April       May  
                                                     2003     2004     2004p    2004p       2003        2004      2004p      2004p 


      Total(1) ..................................    1,703      920    1,458      988      174,204     92,554    157,314     87,501

Total, private ..................................    1,591      884    1,396      915      164,028     89,955    149,806     81,381

  Agriculture, forestry, fishing and hunting ....       53       37       80       37        3,299      2,173      7,149      2,595

 Total, private nonfarm .........................    1,538      847    1,316      878      160,729     87,782    142,657     78,786
  Mining ........................................        9        4    ( 2 )    ( 2 )        1,749        206      ( 2 )      ( 2 )
  Utilities .....................................        7    ( 2 )    ( 2 )    ( 2 )          529      ( 2 )      ( 2 )      ( 2 )
  Construction ..................................      159      106      149       76       13,279      7,288     11,904      5,424
  Manufacturing .................................      499      258      343      219       61,278     34,686     36,172     22,141
      Food ......................................       70       56      112       41        7,655      6,220     13,582      3,897
      Beverage and tobacco products .............        5        9        5    ( 2 )          548      1,039        319      ( 2 )
      Textile mills .............................       21        6        8       12        2,204        456      1,091      1,099
      Textile product mills .....................       10    ( 2 )        5       13          948      ( 2 )        420      2,820
      Apparel ...................................       31       13       12       18        3,705      1,050        922      1,382
      Leather and allied products ...............        7        -        5    ( 2 )          544          -        399      ( 2 )
      Wood products .............................       24       16       16        5        2,361      1,540      1,684        389
      Paper .....................................       15        7        7        7        1,072        529        499        665
      Printing and related support activities ...       16        7       15       13        1,249        501      1,618        985
      Petroleum and coal products ...............        3        -        -        -          190          -          -          -

      Chemicals .................................        8        7       11    ( 2 )          930        416        677      ( 2 )
      Plastics and rubber products ..............       22       14       12        8        1,480      1,061        936        508
      Nonmetallic mineral products ..............       13       12        7    ( 2 )        1,080        860        452      ( 2 )
      Primary metals ............................       27        4        9    ( 2 )        3,920        375        920      ( 2 )
      Fabricated metal products .................       34       16       22        9        2,957      1,103      2,030        660
      Machinery .................................       39       10       19       14        6,179        693      1,658      1,359
      Computer and electronic products ..........       46       15       17       13        4,029      1,274      1,375      1,081
      Electrical equipment and appliances .......       20       12        7       10        3,665      2,789      1,252      1,572
      Transportation equipment ..................       52       38       32       28       13,288     13,430      4,625      2,911
      Furniture and related products ............       21       11       11       12        1,985        985        835      1,098
      Miscellaneous manufacturing ...............       15    ( 2 )       11        5        1,289      ( 2 )        878        376

  Wholesale trade ...............................       31       19       21       11        2,431      1,518      1,944        819
  Retail trade ..................................      117       77      118       91       12,107      6,733     12,659      7,851
  Transportation and warehousing ................       80       38      145       40        7,755      4,682     20,292      3,822
  Information ...................................       63       32       42       32        8,819      4,912      7,851      2,966
  Finance and insurance .........................       31       27       31       23        2,414      2,228      2,594      1,944
  Real estate and rental and leasing ............        5        5       11    ( 2 )          478        332      1,214      ( 2 )
  Professional and technical services ...........       65       29       54       44        5,542      2,619      6,939      4,116
  Management of companies and enterprises .......        5    ( 2 )        4        4          369      ( 2 )        269        232
  Administrative and waste services .............      204      129      194      119       19,751     11,546     20,812      9,839
  Educational services ..........................        8        3        4        4          536        163        374        309
  Health care and social assistance .............       84       19       31       67        7,043      1,039      2,118      5,500
  Arts, entertainment, and recreation ...........       32        4       40       23        2,293        167      3,368      2,006
  Accommodation and food services ...............       98       82       93       82       10,068      8,755     10,067      8,145
  Other services, except public administration ..       39        9       26       35        4,143        506      3,240      3,112

  Unclassified ..................................        2        1        6        1          145         85        563         62

Government ......................................      112       36       62       73       10,176      2,599      7,508      6,120
  Federal .......................................       14        5       14        8        1,736        428      1,173      1,033
  State .........................................       17       10       11       17        1,454        763        884      1,389
  Local .........................................       81       21       37       48        6,986      1,408      5,451      3,698


    1 Data were reported by all states and the District of Columbia.
    2 Data do not meet BLS or state agency disclosure standards. 
    p = preliminary.
    NOTE: Dash represents zero. 




Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division
                           
                                                                                      Initial claimants for            
                                          Mass layoff events                          unemployment insurance           
 Census region and division

                               May         March     April       May         May          March      April        May  
                               2003        2004      2004p      2004p        2003         2004       2004p       2004p 

      United States(1) ....    1,703        920      1,458        988       174,204      92,554     157,314      87,501

Northeast .................      274        123        332        128        27,071      12,196      40,728      11,912

  New England .............       32         12         49         21         2,888         912       5,913       2,007
  Middle Atlantic .........      242        111        283        107        24,183      11,284      34,815       9,905

South .....................      446        207        292        285        48,321      22,094      27,553      27,666

  South Atlantic ..........      214        101        139        138        21,217       8,749      12,141      12,730
  East South Central ......       74         41         52         63         7,645       4,141       5,936       7,512
  West South Central ......      158         65        101         84        19,459       9,204       9,476       7,424

Midwest ...................      373        185        275        237        46,401      25,756      31,619      22,294

  East North Central ......      271        138        235        172        34,240      19,002      27,755      17,057
  West North Central ......      102         47         40         65        12,161       6,754       3,864       5,237

West ......................      610        405        559        338        52,411      32,508      57,414      25,629

  Mountain ................       62         30         52         39         6,104       3,146       5,962       3,580
  Pacific .................      548        375        507        299        46,307      29,362      51,452      22,049


    1 See footnote 1, table 2.
    p = preliminary.
    NOTE: The States (including the District of Columbia) that comprise the census divisions are: New England:
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont; 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. 




Table 4. State distribution: Mass layoff events and initial claimants for unemployment insurance
                         
                                                                                       Initial claimants for            
                                         Mass layoff events                            unemployment insurance           
           State         

                             May         March       April        May         May          March      April        May  
                             2003        2004        2004p       2004p        2003         2004       2004p       2004p 

   Total(1) .............    1,703         920       1,458         988       174,204      92,554     157,314      87,501

Alabama .................       21           7          15          11         1,996         654       2,051       2,586
Alaska ..................    ( 2 )           -           5       ( 2 )         ( 2 )           -         633       ( 2 )
Arizona .................       19           6          20          14         1,846         593       3,177       1,438
Arkansas ................        4           3           6           7           266         422         513         525
California ..............      502         341         440         272        41,857      25,730      44,311      20,148
Colorado ................        7       ( 2 )           9           5           721       ( 2 )         973         502
Connecticut .............        5           -           6           5           403           -         513         327
Delaware ................    ( 2 )       ( 2 )           3           -         ( 2 )       ( 2 )         165           -
District of Columbia ....    ( 2 )       ( 2 )           -           -         ( 2 )       ( 2 )           -           -
Florida .................      100          57          69          67         8,078       4,405       5,447       5,152
Georgia .................       38          11          21          25         3,807         927       2,111       2,674
Hawaii ..................        6           8           7       ( 2 )           554         788         570       ( 2 )
Idaho ...................       11          10           6           4         1,444       1,156         559         347

Illinois ................       70          29          54          48         9,525       3,812       7,471       5,640
Indiana .................       34          13          25          22         4,685       2,609       2,227       2,155
Iowa ....................       27          11           8           6         4,582       1,330         846         515
Kansas ..................        7           5           9           5           811         357       1,222         348
Kentucky ................       25          18          20          26         3,100       2,164       2,559       2,452
Louisiana ...............       22          10          28          21         2,005         887       2,554       1,869
Maine ...................        4       ( 2 )           7       ( 2 )           265       ( 2 )         662       ( 2 )
Maryland ................        8       ( 2 )           9           7           969       ( 2 )         906         488
Massachusetts ...........       16           6          16          11         1,734         386       1,759       1,333
Michigan ................       36          27          38          33         6,599       4,548       3,556       3,369
Minnesota ...............       22           9           5          12         2,119       2,979         327         959
Mississippi .............       10       ( 2 )           6          10           717       ( 2 )         419         879
Missouri ................       28          14          15          27         3,044       1,429       1,242       2,227

Montana .................        3       ( 2 )       ( 2 )       ( 2 )           236       ( 2 )       ( 2 )       ( 2 )
Nebraska ................        9           5           3           8           702         363         227         556
Nevada ..................       14           7           6           3         1,099         642         420         291
New Hampshire ...........    ( 2 )       ( 2 )       ( 2 )           -         ( 2 )       ( 2 )       ( 2 )           -
New Jersey ..............       22          23          47          25         1,915       2,151       4,862       2,768
New Mexico ..............        6           3           4           9           583         323         346         715
New York ................      110          27         120          40        11,375       2,451      19,056       3,348
North Carolina ..........       27          13          20          16         2,790       1,261       1,768       1,346
North Dakota ............        5       ( 2 )           -           4           349       ( 2 )           -         290
Ohio ....................       68          31          51          38         7,098       4,167       5,811       3,305
Oklahoma ................       23           8           5           4         4,653       3,254         425         347
Oregon ..................       22          13          33           9         2,151       1,858       3,899         562
Pennsylvania ............      110          61         116          42        10,893       6,682      10,897       3,789

Rhode Island ............    ( 2 )           3           8       ( 2 )         ( 2 )         219       1,624       ( 2 )
South Carolina ..........       11           6           6           7         1,436         863         796       1,429
South Dakota ............        4       ( 2 )           -           3           554       ( 2 )           -         342
Tennessee ...............       18          14          11          16         1,832       1,231         907       1,595
Texas ...................      109          44          62          52        12,535       4,641       5,984       4,683
Utah ....................    ( 2 )       ( 2 )           4       ( 2 )         ( 2 )       ( 2 )         248       ( 2 )
Vermont .................        4       ( 2 )          10       ( 2 )           315       ( 2 )       1,177       ( 2 )
Virginia ................       26          10          10          14         2,967       1,010         849       1,536
Washington ..............       17          13          22          15         1,684         986       2,039       1,146
West Virginia ...........    ( 2 )       ( 2 )       ( 2 )       ( 2 )         ( 2 )       ( 2 )       ( 2 )       ( 2 )
Wisconsin ...............       63          38          67          31         6,333       3,866       8,690       2,588
Wyoming .................        -       ( 2 )       ( 2 )           -             -       ( 2 )       ( 2 )           -

Puerto Rico .............        7           4          11           4         1,098         318       1,147         640


    1 See footnote 1, table 2.
    2 Data do not meet BLS or state agency disclosure standards. 
    p = preliminary.
    NOTE: Dash represents zero.