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USDL 06-226

For release: 10:00 A.M. EST

Thursday, February 9, 2006

EXTENDED MASS LAYOFFS IN THE FOURTH QUARTER OF 2005

AND ANNUAL AVERAGES FOR 2005

In the fourth quarter of 2005, there were 1,299 mass layoff events that resulted in the separation of

217,803 workers from their jobs for at least 31 days, according to preliminary figures released by the U.S.

Department of Labor’s Bureau of Labor Statistics. Both the total number of layoff events and the number

of separations were sharply lower than during the October-December 2004 time period, with separations

at their lowest level for any fourth quarter since data collection began in 1995. (See table A.) The declines

over the year were most notable in food manufacturing, general merchandise stores, and electrical equipment

and appliance manufacturing. Seventy percent of all employers reporting an extended layoff in the fourth

quarter of 2005 indicated that they would recall some number of workers, the highest proportion for any

fourth quarter. Extended mass layoffs that involve the movement of work within the same company or to a

different company, either domestically or outside the U.S., occurred in 9 percent of the nonseasonal layoff

events, accounting for 10 percent of worker separations related to nonseasonal events. (See table B.)

The completion of seasonal work accounted for 56 percent of all events and resulted in 123,288 separations during the period—the highest share of private nonfarm seasonal separations for any fourth quarter.

Layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty,

and reorganization) represented 12 percent of events and resulted in 28,731 separations, the lowest level

of separations for any fourth quarter since the program began in 1995. Permanent closure of worksites

occurred in 9 percent of all events and affected 20,352 workers, the fewest number of separations due to

permanent closures for any fourth quarter.

In the fourth quarter of 2005, the national unemployment rate was 4.7 percent, not seasonally adjusted;

a year earlier it was 5.1 percent. Private nonfarm payroll employment, not seasonally adjusted, increased

by 1.6 percent or about 1.75 million jobs from October-December 2004 to October-December 2005.

For all of 2005, the total number of extended mass layoff events was 4,780 and the total number of

worker separations was 851,997. These annual totals were lower than in 2004, when there were 5,010

events and 993,909 separations. Since reaching a peak in 2001, the annual number of extended layoff

events has fallen by 2,595, or 35 percent, and the number of separations has declined by 672,835, or 44

percent. Additional information on the annual data is available starting on page 8 of this release.
2

 2001

January-March ........... 1,546 304,171 306,535

April-June .................. 1,828 430,499 358,611

July-September .......... 1,629 330,391 336,298

October-December .... 2,372 459,771 456,068

 2002

January-March ........... 1,611 299,266 292,998

April-June .................. 1,624 344,606 299,598

July-September .......... 1,186 255,152 254,955

October-December .... 1,916 373,307 370,592

 2003

January-March ........... 1,502 286,947 297,608

April-June .................. 1,799 368,273 348,966

July-September .......... 1,190 236,333 227,909

October-December .... 1,690 325,333 326,328

 2004

January-March ........... 1,339 276,503 238,392

April-June .................. 1,358 278,831 254,063

July-September .......... 886 164,608 148,575

October-December .... 1,427 273,967 262,049

 2005

January-March ........... 1,142 187,128 185,420

April-June .................. 1,203 245,790 212,364

July-September .......... 1,136 201,276 189,443

October-December .... 1,299 217,803 178,896

Table A. Selected measures of extended mass layoff activity

 Period Layoff events Separations Initial claimants

r

 = revised.

p

r

r

r

= preliminary.

p

Industry Distribution of Extended Layoffs

Extended mass layoff separations occurred in 311 of the 1,105 detailed industries for which data are

available for the fourth quarter of 2005. This is the fewest number of industries to have at least one extended mass layoff event in a fourth quarter.

Manufacturing industries accounted for 28 percent of private nonfarm layoff events and separations during October-December 2005. (See table 1.) The 61,766 worker separations in manufacturing were the

fewest in that sector for any fourth quarter. In the fourth quarter of 2005, separations in manufacturing were

concentrated in food manufacturing (16,274), followed by transportation equipment manufacturing (12,850).

The construction sector had 35 percent of the events and 28 percent of the separations, mostly among

heavy and civil engineering construction and in specialty trade contractors. Layoffs in the administrative and

waste services sector comprised 11 percent of events and separations, mostly in temporary help services and

in professional employer organizations. Retail trade accounted for 5 percent of private nonfarm layoff events

and 8 percent of separations, primarily in mail-order houses. Layoffs in accommodation and food services

accounted for 4 percent of events and 6 percent of separations, and were primarily concentrated in hotels

and motels, except casino hotels.
3

Information technology-producing industries (communication equipment, communications services,

computer hardware, and software and computer services) accounted for 3 percent of layoff events and

6,417 worker separations in the fourth quarter of 2005. (See table 6.) In the fourth quarter of 2004,

these industries accounted for 4 percent of layoff events and 8,622 separations. Layoffs in the information

technology-producing industries in the fourth quarter of 2005 were most numerous in computer hardware

with 3,450 separations, followed by software and computer services with 1,331 separations.

Reasons for Extended Layoff

Layoffs due to the completion of seasonal work accounted for 56 percent of the extended layoff events

and resulted in 123,288 separations in the fourth quarter of 2005. (See table 2.) Seasonal layoffs were

most numerous among workers in heavy and civil engineering construction (highway, street, and bridge construction) and in food manufacturing (fruit and vegetable canning).

Contract completion accounted for 12 percent of events and resulted in 23,739 separations during the

fourth quarter. These layoffs were primarily in administrative and support services, followed by specialty

trade contractors.

Internal company restructuring (due to bankruptcy, business ownership change, financial difficulty, and

reorganization) accounted for 12 percent of layoff events and resulted in 28,731 separations. These layoffs

were mostly among workers in transportation equipment manufacturing, computer and electronic product

manufacturing, and air transportation. Over half of both the internal company restructuring layoff events and

separations were due to reorganization within the company.

Movement of Work

Between October and December of 2005, 54 extended mass layoff events involved the movement of

work; this was about 9 percent of total extended mass layoff events, excluding those for seasonal and vacation reasons. (See table B.) These movements of work were to other U.S. locations or to locations outside

of the U.S., and they occurred either within the same company or to other companies. The extended mass

layoff events involving movement of work were associated with the separation of 9,851 workers, about 10

percent of all separations resulting from nonseasonal/nonvacation mass layoff events. A year earlier, there

were 83 layoff events and 19,599 separations associated with the movement of work. (See table 10.)

Among the 54 extended mass layoff events with reported relocation of work, just over half (54 percent)

were permanent closures of worksites, which affected 5,453 workers. In comparison, for the 1,299 total

layoff events reported for the fourth quarter of 2005, only 9 percent involved the permanent closure of worksites.

Of the layoffs involving the movement of work, 70 percent of the events and 78 percent of the laid-off

workers were from manufacturing industries during the fourth quarter of 2005. (See table 7.) Among all

private nonfarm extended layoffs, manufacturing accounted for 28 percent of the events and separations.

Internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) accounted for 74 percent of layoff events associated with work relocation and resulted in 7,601 separations during the fourth quarter. (See table 8.) Most of these were due to reorganization within the company. Only 12 percent of all layoff events in the total private nonfarm economy were because of internal

company restructuring.
4

Among the regions, both the Midwest and the South accounted for the largest proportions of workers

in extended mass layoffs associated with the movement of work (29 percent each) in the fourth quarter of

2005, followed by the Northeast (24 percent) and the West (18 percent).

As noted in table B, the 54 extended layoff events for the fourth quarter of 2005 discussed above involve

73 identifiable movement-of-work actions. An identifiable movement-of-work action occurs when the employer provides sufficient information on the new location of work and/or the number of workers affected by

the movement. Some extended mass layoff events involve more than one relocation of work action. For

example, an extended mass layoff event at an establishment may involve job loss due to movement of work

to both another domestic location of the company and to a location out of the country. This would be

counted as two movement-of-work actions. Of the 73 identifiable relocations, employers were able to provide information on the specific separations (6,271 workers) associated with the movement-of-work component of the layoff in 50 actions, or 68 percent of the total actions for the fourth quarter of 2005. Thus, a

range of 6,271 (separations in movement-of-work actions where the employer was able to provide specific

detail) to 9,851 (total separations in all layoff events that included movement of work) is established for job

loss due to the movement of work in the fourth quarter. (See table 10.)

In the 50 actions where employers were able to provide more complete separations information,

80 percent of relocations (40 out of 50) occurred among establishments within the same company. (See

table C.) In 65 percent of these 40 relocations, the work activities were reassigned to places elsewhere

in the U.S.

Thirty-eight percent of the movement-of-work relocations involved out-of-country moves (19 out of 50).

The separation of 2,047 workers was associated with out-of-country relocations, about 2 percent of all nonTable B. Extended mass layoff events and separations, selected measures,

fourth quarter 2005

Action Layoff events Separations

Total private nonfarm ............................. 1,299 217,803

 Total, excluding seasonal and

 vacation events ............................. 572 94,190

 Total events with movement

 of work ................................... 54 9,851

 Movement-of-work actions ..... 73 (3)

With separations reported .. 50 6,271

With separations unknown . 23 (3)

p

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 A layoff event can involve more than one movement-of-work action.

 Data not available.

 preliminary.

1

2

 3

p

 =
5

seasonal/nonvacation extended mass layoff separations. Domestic relocation of work—both within the company and to other companies—affected 4,224 workers. (See table 11.)

Recall Expectations

Seventy percent of employers reporting an extended layoff in the fourth quarter of 2005 indicated they

anticipated some type of recall. This compares with 64 percent of the employers anticipating a recall a year

earlier and is the highest such proportion for any fourth quarter. (See table D.) The fourth quarter typically

has the highest recall expectations for any quarter of the year. Most employers not expecting a recall during

the fourth quarter were from administrative and support services and transportation equipment manufacturing.

Among establishments expecting a recall, most employers expected to recall over one-half of the separated employees and to do so within 6 months. Fifty percent of the employers expected to extend the offer

to all laid-off workers.

Table C. Movement-of-work actions by type of separation where the number

of separations is known by employers, fourth quarter 2005

With separations reported .......... 50 6,271

Out of country............................ 19 2,047

14 1,355

 Different company ................. 5 692

Domestic relocations .................. 31 4,224

26 3,823

 Different company ................. 5 401

Within company ......................... 40 5,178

 Domestic ............................... 26 3,823

 Out of country....................... 14 1,355

Different company ...................... 10 1,093

 Domestic ............................... 5 401

 Out of country....................... 5 692

Action Layoff events Separations

By location

 1 Only actions for which separations associated with the movement of work

were reported are shown.

 p = preliminary.

By company

p

1

Within company.......................

Within company.......................
6

Excluding layoff events due to seasonal work and vacation period (in which 97 percent of the employers

expected a recall), employers expected to recall laid-off workers in 35 percent of the events. A year earlier,

34 percent of employers expected a recall in nonseasonal and nonvacation events. In layoff events due to

internal company restructuring, employers anticipated a recall in only 6 percent of the events.

Size of Extended Layoff

Layoff events during the fourth quarter continued to be concentrated at the lower end of the extended

layoff-size spectrum, with 62 percent involving fewer than 150 workers. These events, however, accounted

for only 33 percent of all separations. (See table E.) Separations involving 500 or more workers, while

comprising 4 percent of the events, accounted for 19 percent of all separations, down from 27 percent in

October-December 2004. The average size of layoffs (as measured by separations per layoff event) differed

widely by industry, ranging from a low of 65 separations in electronics and appliance stores to a high of 677

in nonstore retailers.

Initial Claimant Characteristics

A total of 178,896 initial claimants for unemployment insurance were associated with extended mass

layoffs in the fourth quarter of 2005. Of these claimants, 12 percent were black, 15 percent were Hispanic,

31 percent were women, 36 percent were 30 to 44 years of age, and 16 percent were 55 years of age or

older. (See table 3.) Among persons in the civilian labor force for the same period, 11 percent were black,

13 percent were Hispanic, 47 percent were women, 35 percent were age 30 to 44, and 17 percent were 55

years of age or older.

Geographic Distribution

In the fourth quarter, the number of separations due to extended mass layoff events was highest in the

Midwest (106,095), followed by the South (39,487), the West (38,487), and the Northeast (33,734). (See

 Table D. Summary of employer expectations of a recall from extended

 layoff, fourth quarter 2004-fourth quarter 2005

 Anticipate a recall ................ 64.2 51.5 61.8 39.5 69.7

 Timeframe

 Within 6 months .................. 84.8 85.5 89.4 78.8 90.1

 Within 3 months................. 33.1 53.4 59.5 57.9 36.5

 Size

 At least half ......................... 92.9 92.5 92.9 80.2 92.8

 All workers ........................ 49.8 43.2 51.1 43.2 50.5

Nature of the recall IV

2005

II

2005

III

2005

I

2005

IV

2004 r p

Percentage of events

r

 = revised.

p

 = preliminary.
7

table 4.) Extended mass layoffs in the Midwest were mainly in heavy and civil engineering construction and

in specialty trade contractors.

All four regions reported over-the-year decreases in separations, with the largest decrease occurring in

the West (-29,298), followed by the Northeast (-14,727), the South (-7,541), and the Midwest (-4,598).

Seven of the nine geographic divisions reported over-the-year declines in laid-off workers, with the largest

declines occurring in the Pacific (-27,068) and Middle Atlantic (-12,752) divisions. The West South Central

division reported the largest increase in separations (+1,140).

Among the 50 states and the District of Columbia, the largest number of worker separations occurred

in Illinois (32,967), followed by Ohio (19,640), New York (14,268), and Michigan (14,107). These four

states accounted for 37 percent of total layoff events and separations during the fourth quarter of 2005.

They were followed by California (13,959), Florida (12,824), Minnesota (12,646), and Wisconsin (7,967).

(See table 5.) After excluding the substantial impact of seasonal work, Illinois reported the most laid-off

workers (12,510), largely due to layoffs in administrative and support services.

Over the year, California reported the greatest decrease in workers laid off for all reasons during the

fourth quarter (-26,923), followed by Wisconsin (-6,948) and Florida (-6,434). The largest increases

occurred in Ohio (+8,900), Louisiana (+3,317), and Oregon (+1,492).

Fifty-seven percent of events and 56 percent of separations (121,969) occurred in metropolitan areas

in the fourth quarter of 2005, compared with 56 percent of events and 52 percent of separations (141,366)

during the fourth quarter of 2004. Among the 367 metropolitan areas, Chicago-Naperville-Joliet, Ill.-Ind.-

Wis., reported the highest number of separations, 16,034, in the fourth quarter of 2005. Next were New

York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa., with 7,905 separations, and New OrleansMetairie-Kenner, La., with 6,579 separations. (See table F.) Employers located in nonmetropolitan areas

separated 30,980 workers in mass layoffs, down from 34,595 workers in the fourth quarter of 2004.

 Number Percent Number

Size

 Total............ 1,299 100.0 217,803 100.0

50-99................ 483 37.2 35,405 16.3

100-149............ 324 24.9 37,558 17.2

150-199............ 169 13.0 28,279 13.0

200-299............ 173 13.3 39,534 18.2

300-499............ 102 7.9 35,751 16.4

500-999............ 39 3.0 25,421 11.7

1,000 or more.... 9 .7 15,855 7.3

p

 = preliminary.

 Percent

Table E. Distribution of extended layoff events by size of layoff,

October-December 2005

Layoff events Separations

p
8

Review of 2005

For all of 2005, employers reported 4,780 extended mass layoff actions, affecting 851,997 workers,

down from 5,010 events and 993,909 separations in 2004. The total number of separations for 2005

was the lowest for any year since annual totals became available in 1996. Compared to their peak levels

in 2001, the number of events was down by 35 percent and the number of separations was down by 44

percent. (See table G.) The annual average national unemployment rate decreased from 5.5 percent in

2004 to 5.1 percent in 2005, while private nonfarm payroll employment increased by 1.7 percent, or

1,847,000 jobs.

Eleven percent of extended events in 2005 were permanent closures, accounting for 102,788 worker

separations. When compared with 2004, the share of total extended mass layoff events that resulted in a

permanent worksite closure fell by 4 percentage points, as did the respective share of the associated separations. Both the total number of permanent closures and the associated separations reached series lows in

2005. Since 2001, when permanent closures were at their highest, the number of closures has fallen by 56

percent and the number of associated separations has declined by 73 percent. During 2005, permanent

closures were most numerous in the manufacturing sector, primarily in transportation equipment manufacturing

and food production. Reorganization within the company was most often cited as the reason for closures in

manufacturing during 2005, accounting for 38 percent of the total closures.

Table F. Mass layoff events and separations, selected metropolitan areas

 1 Data do not meet BLS or state agency disclosure standards.

 p

 = preliminary.

 NOTE: The geographic boundaries of the metropolitan areas shown in this table are

defined in Office of Management and Budget Bulletin 04-03, February 18, 2004.

Metropolitan area IV

2005

IV

2004

IV

2005

 IV

2004 p

Events Separations

Total, nonmetropolitan areas............................. 205 208 34,595 30,980

Total, 367 metropolitan areas........................... 804 746 141,366 121,969

Chicago-Naperville-Joliet, III.-Ind.-Wis. ...... 89 86 17,869 16,034

New York-Northern New Jersey-Long

 Island, N.Y.-N.J.-Pa. ............................... 69 63 10,505 7,905

New Orleans-Metairie-Kenner, La. ............. 5 15 1,235 6,579

Detroit-Warren-Livonia, Mich...................... 36 45 5,060 6,000

Minneapolis-St. Paul-Bloomington,

 Minn.-Wis................................................ 33 40 4,794 5,824

Medford, Ore. ............................................ (1

) (1) (1) (1)

Cleveland-Elyria-Mentor, Ohio .................... 11 15 1,051 3,175

St. Louis, Mo.-Ill. ........................................ 5 11 2,428

Columbus, Ohio........................................... 6 9 464 1,825

Louisville, Ky............................................... 7 9 1,022 1,815

p

2,524
9

In 2005, employers expected a recall in 56 percent of the mass layoff events, higher than in 2004 when

employers expected a recall in 51 percent of events. Employers in mining, construction, and arts, entertainment, and recreation were more likely to have some type of recall than were those in other industries. Employers in the finance and insurance sector had the lowest percentage of recall expectation (8 percent), followed by those in the information sector (17 percent).

Of the layoff events where employers did not expect to recall laid-off workers, 34 percent were in the

manufacturing sector. These occurred primarily in transportation equipment and computer and electronic

products.

Industry. Manufacturing had the largest share of both extended events and separations in 2005—26 and

25 percent, respectively. However, these were the smallest shares on record for this industry group. Since

reaching a peak in 2001, the number of manufacturing events has declined by 62 percent and the number of

separations has declined by 66 percent. In 2005, within manufacturing, separations were most numerous in

food manufacturing (48,944, largely in fruit and vegetable processing) and transportation equipment (41,474,

mostly in automobile manufacturing). Compared with 2004, 17 of the 21 manufacturing subgroups had declines in the number of separations, with the largest occurring in food production (-15,106) and apparel manufacturing (-4,845). Wood products manufacturing had the largest increase (+2,708), followed by machinery

(+2,568).

Reason. In 2005, seasonal work continued to be the most-cited reason for layoff, accounting for 37

percent of all layoff events and 40 percent of all separations. A year earlier, seasonal layoffs accounted

for 33 percent of events and 34 percent of separations. The seasonal layoffs in 2005 occurred primarily

in establishments engaged in heavy and civil engineering construction, amusements, gambling and recreation,

and food manufacturing.

Layoff activity due to internal company restructuring occurred largely among transportation equipment

manufacturing, credit intermediation and related activities, air transportation, and food and beverage stores.

Internal company restructuring occurred in 759 events (16 percent of the total), resulting in the separation

of 145,352 workers (17 percent of the total).

Period Layoff events Separations

 1996............................ 4,760 948,122 805,810

1997........................... 4,671 947,843 879,831

1998........................... 4,859 991,245 1,056,462

1999........................... 4,556 901,451 796,917

2000........................... 4,591 915,962 846,267

2001........................... 7,375 1,524,832 1,457,512

2002........................... 6,337 1,272,331 1,218,143

2003........................... 6,181 1,216,886 1,200,811

2004........................... 5,010 993,909 903,079

2005 ................................ 4,780 851,997 766,123

p

 = preliminary.

Initial claimants

Table G. Selected measures of mass layoff activity, 1996-2005

p
10

Movement of work. In 2005, there were 266 extended mass layoff events that involved work moving

within the same company or to a different company, domestically or out of the U.S. The events involving

movement of work were associated with the separation of 51,920 workers, about 10 percent of all separations resulting from nonseasonal/nonvacation mass layoff events. Fifty-four percent of events with movement of work involved the permanent closure of a worksite, affecting 26,991 workers. More than twothirds of the events and separations were in manufacturing industries, mostly in transportation equipment

manufacturing. Employers citing internal company restructuring (bankruptcy, business ownership change,

financial difficulty, and reorganization) accounted for over two-thirds of the movement-of-work events and

separations. Among the regions, the Midwest accounted for the largest proportion of laid-off workers associated with the movement of work (31 percent), followed by the South (30 percent), the West (21 percent), and the Northeast (18 percent).

As part of the 266 layoff events, 344 identifiable movement-of-work actions were taken by employers.

Employers were able to provide information on specific separations associated with the movement-of-work

component of the layoff in 252 actions, which totaled 33,255 laid-off workers. Thus, the number of separations due to the movement of work ranged between 33,255 (separations in movement-of-work actions

where the employer was able to provide specific detail) to 51,920 (total separations in all layoff events that

included movement of work) for 2005.

Of the 252 movement-of-work actions for which complete information is available, 6 in 10 relocations

were to other locations within the U.S., and nearly 8 in 10 involved moving work within the company. The

separation of 11,375 workers was associated with out-of-country relocations, which accounted for 34 percent of the separations related to the movement of work and 2 percent of all separations in nonseasonal/

nonvacation extended mass layoff events. In out-of-country relocations, Mexico and China were cited 69

percent of the time as the destination to which work moved. Domestic relocation of work—both within the

company and to other companies—affected 21,186 workers.

Geographic distribution. The Midwest reported more laid-off workers in 2005 than any other region,

294,762. Layoffs in the Midwest were mainly in heavy and civil engineering construction and administrative

and support services and were primarily attributed to seasonal factors. The Northeast region continued to

report the lowest annual number of separations (160,445). Compared with 2004, three of the four geographic regions reported a decrease in laid-off workers, with the largest decline in the West (-116,424).

The South had the only over-the-year increase (+18,575).

Among the 50 states and the District of Columbia, Illinois reported the largest number of separated

workers in 2005 (101,106). After Illinois were California (80,361), New York (67,276), and Florida

(65,860). These four states accounted for 34 percent of events and 37 percent of separations in 2005.

California had the largest over-the-year decline in the number of separations (-126,426); Louisiana recorded the largest over-the-year increase (+47,288). Over 90 percent of the increase in Louisiana occurred in the third quarter and was related to the effects of Hurricanes Katrina and Rita.

Fifty-nine percent of events and 53 percent of separations occurred in metropolitan areas in 2005, compared with 56 percent of events and 47 percent of separations in 2004. Among the 367 metropolitan areas,

New Orleans-Metairie-Kenner, La., reported the highest number of separations, 48,542, with most related to

the hurricanes. Next were New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa., with 44,931 separations, and Chicago-Naperville-Joliet, Ill.-Ind.-Wis., with 41,946. Employers located in nonmetropolitan

areas separated 105,330 workers in extended mass layoffs during 2005, down from 110,186 workers in

2004.
11

Impact of Hurricanes Katrina and Rita. The impacts of Hurricanes Katrina and Rita were seen in the

Mass Layoff Statistics (MLS) program through initial claims filings against establishments in the most severely

affected states—Louisiana and Mississippi. Total potential events in the period from August 28 through

December 31 reached 964, with 136,930 initial claims filed. Private nonfarm extended mass layoffs directly

or indirectly due to Hurricanes Katrina and Rita totaled 358 events and 56,310 separations in the period.

(See table H.) The majority of the extended mass layoff activity (96 percent of the events and 88 percent

of the separations) occurred in September, and all of the events were from Louisiana and Mississippi employers. Accommodation and food service establishments reported the highest number of worker separations due to the hurricanes, followed by retail trade and healthcare and social assistance.

Extended mass layoff events accounted for 37 percent of the mass layoff events potentially related to

Hurricanes Katrina and Rita (358 of 964) in the 4-month period. It is important to note that the 964 potential events include 99 from government agencies which are not subject to the MLS employer interview.

Also, in response to the interview, many employers responded that the layoff was temporary (less than 31

days) or did not occur at all.

Note

The quarterly series on extended mass layoffs cover layoffs of at least 31-days duration that involve 50

or more individuals from a single establishment filing initial claims for unemployment insurance during a consecutive 5-week period. Approximately 30 days after a mass layoff is triggered at an establishment, the

employer is contacted for additional information. Data for the fourth quarter are preliminary and subject to

revision. This release also includes revised data for previous quarters. Data are not seasonally adjusted,

but survey data suggest that there is a seasonal pattern to layoffs. Thus, comparisons between consecutive

quarters should not be used as an indicator of trend.

For additional information about the program, see the Technical Note.

______________________________

The report on Mass Layoffs in January 2006 is scheduled to be released on Thursday, February 23,

2006.

 Events ....................... 964 358

Initial claims ............... 136,930 47,767

Separations ................ (2) 56,310

 Total potential

 mass layoffs Measure

1 Includes private nonfarm establishments only.

2 Separations are not available.

 p = preliminary.

Table H. Hurricanes Katrina- and Rita-related mass layoff activity

in Louisiana and Mississippi, September-December 2005 p

1 Extended mass layoffs
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. Establishments 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,

information is obtained on the total number of persons

separated and the reasons for these separations.

Establishments are identified according to industry

classification and location, and unemployment insurance

claimants are identified by such demographic factors as age,

race, gender, ethnic group, and place of residence. The program

yields information on an individual’s entire spell of

unemployment, to the point when regular unemployment

insurance benefits are exhausted.

Definitions

Establishment. A unit at a single physical location at which

predominantly 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.

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.

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 multiunit establishment where entire worksites affected by layoffs

are closed or planned to be closed.

Movement of work concepts and questions

Because of the employer interview component, 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. 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.

“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 location(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 arrangements?”

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

interview continues 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 administrative 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 interview questions, the employer

responses are subject to nonsampling error. Nonsampling error

can occur for many reasons, including the inability to obtain

information for all respondents, inability or unwillingness of

respondents to provide correct information, and errors made in

the collection or processing of the data. For the fourth quarter

of 2005, outright refusal to participate in the employer interview

accounted for 2.4 percent of all private nonfarm events.

Although included in the total number of instances involving

the movement of work, for the fourth quarter, employers in 23

relocations were unable to provide the number of separations

specifically associated with the movement of work, 14 of which

involved out-of-country moves.

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, separations, and initial claimants for unemployment insurance,

private nonfarm sector, selected quarters, 2004 and 2005

Industry

IV III IV IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p 2004 2005r 2005p 

 Total, private nonfarm1 .................................. 1,427 1,136 1,299 273,967 201,276 217,803 262,049 189,443 178,896 

 Mining ............................................................. 24 4 25 3,915 1,312 3,068 3,508 1,001 2,510 

 Utilities ............................................................ 6 ( 2 ) 3 2,153 ( 2 ) 519 1,730 ( 2 ) 454 

 Construction .................................................... 418 90 452 61,066 10,507 60,935 67,029 14,721 53,907 

 Manufacturing ................................................. 439 292 364 84,535 55,848 61,766 88,664 56,243 57,684 

 Food ........................................................... 109 50 83 26,473 10,214 16,274 23,241 8,786 13,833 

 Beverage and tobacco products ................ 8 ( 2 ) 5 2,455 ( 2 ) 784 1,158 ( 2 ) 568 

 Textile mills ................................................ 6 12 13 771 1,805 1,392 1,832 2,480 1,643 

 Textile product mills ................................... 3 6 ( 2 ) 350 619 ( 2 ) 385 851 ( 2 )

 Apparel ....................................................... 16 13 8 3,940 1,459 2,075 2,700 1,616 924 

 Leather and allied products ........................ 3 ( 2 ) ( 2 ) 584 ( 2 ) ( 2 ) 733 ( 2 ) ( 2 )

 Wood products ........................................... 10 11 15 1,358 2,828 1,740 2,036 2,822 1,535 

 Paper ......................................................... 12 9 8 1,423 1,174 1,143 1,212 984 805 

 Printing and related support activities ........ 4 7 7 611 662 1,027 805 589 612 

 Petroleum and coal products ..................... 16 – 16 2,389 – 2,285 2,695 – 2,280 

 Chemicals ................................................. 11 10 9 1,417 1,901 1,458 1,451 1,821 1,197 

 Plastics and rubber products ..................... 20 7 23 2,087 770 2,445 2,440 721 2,397 

 Nonmetallic mineral products ..................... 34 12 35 5,409 1,433 5,862 6,365 1,631 5,512 

 Primary metals ........................................... 15 6 10 2,395 1,562 2,292 1,915 898 1,102 

 Fabricated metal products ......................... 23 25 11 3,368 2,623 1,342 3,575 2,978 1,036 

 Machinery .................................................. 17 26 7 2,528 6,079 1,112 3,084 6,335 1,108 

 Computer and electronic products ............. 27 21 20 4,791 4,259 3,729 4,144 3,126 2,666 

 Electrical equipment and appliances ......... 17 9 ( 2 ) 5,149 4,604 ( 2 ) 7,091 4,607 ( 2 )

 Transportation equipment .......................... 54 46 64 11,815 9,715 12,850 16,427 11,629 17,006 

 Furniture and related products ................... 23 9 15 3,540 2,235 1,872 3,501 2,266 1,798 

 Miscellaneous manufacturing .................... 11 10 6 1,682 1,437 769 1,874 1,605 758 

 Wholesale trade .............................................. 17 36 21 4,019 4,561 2,674 2,519 4,030 2,828 

 Retail trade ...................................................... 53 112 61 21,377 20,902 16,885 14,926 19,512 8,747 

 Transportation and warehousing .................... 33 87 31 6,003 17,820 5,949 7,169 15,750 4,465 

 Information ...................................................... 46 26 18 8,416 3,425 3,397 9,144 3,265 2,957 

 Finance and insurance .................................... 31 25 15 6,045 5,029 2,276 5,341 5,178 1,938 

 Real estate and rental and leasing ................. 3 7 ( 2 ) 1,383 562 ( 2 ) 970 978 ( 2 )

 Professional and technical services ................ 28 34 32 6,189 5,029 5,036 5,850 5,519 5,008 

 Management of companies and enterprises ... 4 ( 2 ) 3 1,581 ( 2 ) 566 995 ( 2 ) 466 

 Administrative and waste services .................. 153 121 147 28,401 22,670 23,830 25,775 22,413 20,746 

 Educational services ....................................... – 13 ( 2 ) – 2,390 ( 2 ) – 2,117 ( 2 )

 Health care and social assistance .................. 31 94 19 7,467 11,064 4,497 5,049 9,377 2,549 

 Arts, entertainment, and recreation ................. 46 32 40 8,875 13,985 9,434 5,916 6,386 4,875 

 Accommodation and food services ................. 83 139 56 19,782 23,075 13,049 15,691 20,172 8,030 

 Other services, except public administration .. 10 18 9 2,357 2,285 1,551 1,641 2,099 1,058 

 Unclassified ..................................................... 2 1 – 403 178 – 132 178 –

 1

 For the fourth quarter of 2005, data on layoffs were reported by employers administrative data, will be unaffected and will continue to cover the

in all states and the District of Columbia. Due to budget constraints in the MLS total economy.

program, beginning with data for the first quarter of 2004, the scope of quarterly 2

 Data do not meet BLS or state agency disclosure standards.

extended mass layoffs and plant closings has been redefined to cover only the r

 = revised.

private nonfarm economy. Quarterly information on layoff events in agriculture p

 = preliminary.

and government are no longer being collected. However, the monthly reporting NOTE: Dash represents zero.

of the MLS program in the release, Mass Layoffs , which is based only on

Separations Initial claimants for

unemployment insurance Layoff events
Table 2. Reason for layoff: Extended mass layoff events, separations, and initial claimants for unemployment insurance, 

private nonfarm sector, selected quarters, 2004 and 2005

Reason for layoff

IV III IV IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p 2004 2005r 2005p 

 Total, private nonfarm1 ......................... 1,427 1,136 1,299 273,967 201,276 217,803 262,049 189,443 178,896 

Automation .............................................. ( 2

 ) ( 2 ) – ( 2 ) ( 2 ) – ( 2 ) ( 2 ) –

Bankruptcy ............................................... 25 16 24 3,965 5,864 4,636 2,697 4,570 3,356 

Business ownership change .................... 28 29 14 4,743 5,298 2,282 3,811 4,628 1,685 

Contract cancellation ............................... 23 19 16 4,164 3,309 2,452 2,977 2,869 1,393 

Contract completed ................................. 187 165 151 36,520 25,849 23,739 38,110 31,161 23,170 

Energy-related ......................................... – ( 2 ) ( 2 ) – ( 2 ) ( 2 ) – ( 2 ) ( 2 )

Environment-related ................................ ( 2 ) – ( 2 ) ( 2 ) – ( 2 ) ( 2 ) – ( 2 )

Financial difficulty .................................... 48 32 29 10,373 6,200 5,752 7,540 5,667 3,751 

Import competition ................................... 13 14 16 1,709 3,568 2,712 1,661 3,320 2,337 

Labor dispute ........................................... 13 11 ( 2 ) 5,824 6,365 ( 2 ) 4,814 5,200 ( 2 )

Material shortage ..................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

Model changeover ................................... – 3 3 – 1,655 767 – 2,250 360 

Natural disaster ....................................... – ( 2 ) – – ( 2 ) – – ( 2 ) –

Non-natural disaster ................................ ( 2 ) ( 2 ) – ( 2 ) ( 2 ) – ( 2 ) ( 2 ) –

Plant or machine repair ........................... 5 3 ( 2 ) 600 280 ( 2 ) 588 310 ( 2 )

Product line discontinued ........................ 6 10 13 1,496 1,493 2,007 1,388 1,430 1,282 

Reorganization within company ............... 116 104 94 23,945 20,616 16,061 22,349 19,958 14,594 

Seasonal work ......................................... 667 174 725 129,859 36,992 123,288 111,692 26,964 91,237 

Slack work ............................................... 166 117 125 22,196 16,426 15,790 38,246 20,618 21,885 

Vacation period ........................................ – 9 ( 2 ) – 662 ( 2 ) – 627 ( 2 )

Weather-related ....................................... 32 344 24 4,217 49,832 7,528 3,785 45,473 3,569 

Other ........................................................ 38 26 16 8,491 4,949 2,183 7,069 2,793 1,790 

Not reported ............................................. 55 54 40 14,780 10,757 7,051 14,611 10,686 7,051 

 1

 See footnote 1, table 1. p = preliminary.

 2

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

 r

 = revised.

Initial claimants for

unemployment insurance Layoff events Separations
Table 3. State and selected claimant characteristics: Extended mass layoff events and initial claimants for unemployment insurance, 

private nonfarm sector, third and fourth quarters, 2005

Total Percent of total

State

Layoff events initial

claimants Black Hispanic

origin Women Persons age 55and over

III IV III IV III IV III IV III IV III IV

 2005r 2005p 2005r 2005p 2005r 2005p 2005r 2005p 2005r 2005p 2005r 2005p 

 Total, private nonfarm1 ........... 1,136 1,299 189,443 178,896 26.4 11.6 10.6 14.6 47.3 30.7 16.6 16.3 

Alabama ...................................... 3 6 384 622 61.5 35.4 2.3 2.1 43.8 29.7 25.8 20.9 

Alaska .......................................... 3 8 756 1,282 2.0 4.1 22.8 23.5 29.9 25.2 18.4 12.5 

Arizona ........................................ 3 ( 2 ) 787 ( 2 ) 1.4 7.1 53.1 25.0 20.6 30.4 27.3 16.1 

Arkansas ..................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) 64.2 21.6 – – 88.7 72.2 24.5 20.6 

California ..................................... 87 79 13,199 10,461 10.3 6.7 31.1 45.6 50.5 50.8 18.7 17.4 

Colorado ...................................... 5 18 705 2,169 3.7 1.8 14.2 37.2 32.6 18.9 24.5 17.9 

Connecticut ................................. 9 8 980 904 11.7 10.3 11.8 7.4 59.2 27.0 21.1 15.6 

Delaware ..................................... – – – – – – – – – – – –

District of Columbia ..................... ( 2 ) – ( 2 ) – 28.6 – 26.4 – 48.4 – 20.9 –

Florida ......................................... 78 74 14,659 10,476 15.7 15.3 30.6 30.6 48.7 46.2 17.5 18.2 

Georgia ........................................ 13 15 2,224 1,780 48.6 68.2 .4 .5 60.8 58.6 15.6 15.6 

Hawaii .......................................... 3 3 359 300 2.5 1.0 13.6 22.0 40.4 5.3 18.9 8.7 

Idaho ........................................... 7 18 1,143 2,362 .5 .1 28.6 22.9 59.4 39.9 23.9 18.9 

Illinois .......................................... 75 164 15,346 21,335 24.5 14.9 11.5 21.9 40.2 24.5 14.9 12.7 

Indiana ......................................... 10 42 3,669 5,263 10.1 10.2 1.3 4.0 31.9 20.9 15.4 10.8 

Iowa ............................................. 3 34 1,713 4,317 1.5 1.9 .6 5.4 39.8 13.4 10.7 19.0 

Kansas ........................................ 5 4 500 630 8.6 3.8 5.4 8.6 28.6 13.2 12.0 16.8 

Kentucky ...................................... 15 24 1,616 2,324 13.4 8.8 .2 .1 47.8 28.0 16.0 16.4 

Louisiana ..................................... 331 18 41,600 2,751 58.7 64.2 4.3 3.9 59.1 63.9 10.9 4.8 

Maine ........................................... 3 4 315 647 1.6 .3 – .2 73.0 18.9 18.4 19.2 

Maryland ...................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) 29.6 7.7 .3 – 32.6 6.2 22.0 10.8 

Massachusetts ............................ 19 16 2,893 2,154 8.3 5.5 2.3 7.9 50.9 31.0 20.9 24.3 

Michigan ...................................... 38 107 8,339 17,405 13.7 13.0 2.6 7.5 37.7 26.9 14.7 13.1 

Minnesota .................................... 19 84 4,752 10,336 3.4 2.0 1.9 11.6 21.5 18.0 17.2 16.5 

Mississippi ................................... 45 ( 2 ) 8,941 ( 2 ) 43.7 29.0 10.3 3.8 56.3 58.0 15.1 13.7 

Missouri ....................................... 12 27 1,419 5,926 38.0 9.1 1.0 .4 62.0 32.8 23.5 23.3 

Montana ...................................... ( 2

 ) 11 ( 2 ) 969 .4 .3 1.8 3.5 14.7 12.3 26.7 17.9 

Nebraska ..................................... ( 2 ) 11 ( 2 ) 964 1.7 4.9 25.6 16.8 22.3 19.4 9.1 19.9 

Nevada ........................................ ( 2 ) 5 ( 2 ) 433 5.3 12.7 16.2 17.6 28.7 47.8 28.7 25.9 

New Hampshire ........................... 3 5 281 936 1.1 1.5 6.4 25.0 54.8 23.4 24.6 15.6 

New Jersey .................................. 34 32 5,173 3,741 21.8 14.2 10.9 15.0 49.1 35.7 28.7 26.5 

New Mexico ................................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) 5.0 – 15.0 90.8 26.7 40.6 11.7 20.8 

New York ..................................... 94 99 15,757 13,534 14.5 7.6 11.5 6.8 44.7 22.4 18.8 17.1 

North Carolina ............................. 20 21 6,363 2,308 31.8 35.8 3.6 5.4 49.0 47.6 20.1 24.1 

North Dakota ............................... – 6 – 744 – .1 – 3.1 – 7.0 – 16.9 

Ohio ............................................. 38 105 7,238 13,666 12.2 9.4 1.6 2.9 39.3 20.4 15.3 13.0 

Oklahoma .................................... ( 2 ) 3 ( 2 ) 590 18.1 6.9 4.0 15.9 30.7 43.9 11.6 31.7 

Oregon ........................................ 6 10 994 2,659 .5 .8 30.3 36.3 54.8 55.9 22.5 18.9 

Pennsylvania ............................... 65 64 12,191 11,077 6.0 9.0 2.0 2.8 37.5 42.0 20.8 20.9 

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

 ) ( 2 ) ( 2 ) ( 2 ) 1.7 1.4 6.7 8.6 95.0 14.1 25.0 13.6 

South Carolina ............................. 10 10 1,779 1,855 54.5 53.4 .3 .2 61.6 53.1 5.1 11.2 

South Dakota ............................... – ( 2 ) – ( 2 ) – 1.8 – .9 – 5.5 – 20.0 

Tennessee ................................... 12 11 2,650 1,243 13.0 25.5 – – 50.6 35.8 31.3 28.1 

Texas ........................................... 21 22 3,321 3,722 17.0 19.8 39.3 32.1 35.4 33.8 16.7 14.9 

Utah ............................................. ( 2 ) 9 ( 2 ) 994 4.3 1.4 26.9 14.2 60.7 21.7 5.6 10.3 

Vermont ....................................... – 5 – 468 – – – .4 – 18.8 – 20.1 

Virginia ........................................ 10 16 1,307 1,615 44.5 40.1 2.0 5.8 45.4 49.7 18.2 17.5 

Washington ................................. 9 30 1,069 5,048 5.6 3.1 5.1 35.4 32.5 35.5 23.9 16.9 

West Virginia ............................... 3 ( 2 ) 435 ( 2 ) .2 4.6 – – 10.6 31.2 12.9 15.6 

Wisconsin .................................... 11 57 2,649 7,625 6.7 2.5 16.7 12.2 29.0 18.0 20.1 14.4 

Wyoming ..................................... – ( 2 ) – ( 2 ) – .5 – – – 37.4 – 46.3 

Puerto Rico .................................. 6 11 2,104 1,601 ( 3

 ) ( 3 ) ( 3 ) ( 3 ) 61.7 52.0 6.3 10.9 

 1 See footnote 1, table 1. r

 = revised.

 2 Data do not meet BLS or state agency disclosure standards. p

 = preliminary.

 3 Data are not available. NOTE: Dash represents zero.
Table 4. Census region and division: Extended mass layoff events, separations, and initial claimants for unemployment insurance, 

private nonfarm sector, selected quarters, 2004 and 2005

Census region and division

Layoff events Separations Initial claimants for

unemployment insurance

IV III IV IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p 2004 2005r 2005p 

 United States1 .................................. 1,427 1,136 1,299 273,967 201,276 217,803 262,049 189,443 178,896 

Northeast ................................................. 298 228 235 48,461 31,395 33,734 58,044 37,650 33,681 

 New England ........................................ 51 35 40 9,800 4,443 7,825 8,110 4,529 5,329 

 Middle Atlantic ...................................... 247 193 195 38,661 26,952 25,909 49,934 33,121 28,352 

South ........................................................ 265 567 225 47,028 93,317 39,487 42,867 86,124 29,688 

 South Atlantic ....................................... 166 137 138 30,802 29,580 22,042 26,399 27,162 18,208 

 East South Central ............................... 40 75 43 6,502 16,061 6,581 5,361 13,591 4,320 

 West South Central .............................. 59 355 44 9,724 47,676 10,864 11,107 45,371 7,160 

Midwest .................................................... 608 213 643 110,693 46,876 106,095 113,135 45,746 88,321 

 East North Central ............................... 441 172 475 82,685 36,626 79,845 85,505 37,241 65,294 

 West North Central .............................. 167 41 168 28,008 10,250 26,250 27,630 8,505 23,027 

West ......................................................... 256 128 196 67,785 29,688 38,487 48,003 19,923 27,206 

 Mountain .............................................. 57 20 66 14,495 8,191 12,265 8,136 3,546 7,456 

 Pacific .................................................. 199 108 130 53,290 21,497 26,222 39,867 16,377 19,750 

 1 See footnote 1, table 1. West Virginia; East South Central: Alabama, Kentucky, Mississippi, and 

 r = revised. Tennessee; West South Central: Arkansas, Louisiana, Oklahoma, and

 p = preliminary. Texas: East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin;

 NOTE: The States (including the District of Columbia) that comprise the West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North

census divisions are: New England: Connecticut, Maine, Massachusetts Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho, Montana

New Hampshire, Rhode Island, and Vermont; Middle Atlantic: New Jersey, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California,

New York, and Pennsylvania; South Atlantic: Delaware, District of Columbia, Hawaii, Oregon, and Washington.

Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and
Table 5. State distribution: Extended mass layoff events, separations, and initial claimants for unemployment insurance,

private nonfarm sector, selected quarters, 2004 and 2005

State

IV III IV IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p 2004 2005r 2005p 

 Total, private nonfarm1 ........................ 1,427 1,136 1,299 273,967 201,276 217,803 262,049 189,443 178,896 

Alabama ................................................... 4 3 6 1,005 444 806 1,005 384 622 

Alaska ...................................................... 10 3 8 1,451 670 2,138 1,451 756 1,282 

Arizona ..................................................... 8 3 ( 2 ) 2,034 1,406 ( 2 ) 1,244 787 ( 2 )

Arkansas .................................................. 4 ( 2 ) ( 2 ) 651 ( 2 ) ( 2 ) 368 ( 2 ) ( 2 )

California .................................................. 131 87 79 40,882 16,921 13,959 28,771 13,199 10,461 

Colorado .................................................. 22 5 18 5,507 4,691 3,297 2,866 705 2,169 

Connecticut .............................................. 6 9 8 1,498 1,382 1,426 1,091 980 904 

Delaware .................................................. – – – – – – – – –

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

Florida ...................................................... 106 78 74 19,258 18,156 12,824 16,200 14,659 10,476 

Georgia .................................................... 13 13 15 1,239 1,002 1,893 2,160 2,224 1,780 

Hawaii ...................................................... 5 3 3 487 336 308 419 359 300 

Idaho ........................................................ 10 7 18 1,435 1,185 2,645 1,946 1,143 2,362 

Illinois ....................................................... 155 75 164 36,251 16,862 32,967 29,161 15,346 21,335 

Indiana ..................................................... 34 10 42 5,021 2,614 5,164 8,529 3,669 5,263 

Iowa ......................................................... 35 3 34 4,708 1,510 4,911 6,533 1,713 4,317 

Kansas ..................................................... 11 5 4 2,160 548 875 1,816 500 630 

Kentucky .................................................. 24 15 24 3,091 2,613 3,898 2,678 1,616 2,324 

Louisiana .................................................. 19 331 18 3,665 44,614 6,982 2,207 41,600 2,751 

Maine ....................................................... 7 3 4 3,558 207 2,645 1,943 315 647 

Maryland .................................................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

Massachusetts ......................................... 22 19 16 2,886 2,461 2,077 3,191 2,893 2,154 

Michigan ................................................... 92 38 107 15,758 7,530 14,107 19,338 8,339 17,405 

Minnesota ................................................ 81 19 84 12,553 5,571 12,646 12,510 4,752 10,336 

Mississippi ................................................ 4 45 ( 2 ) 265 9,691 ( 2 ) 261 8,941 ( 2 )

Missouri .................................................... 22 12 27 5,384 2,301 5,951 4,562 1,419 5,926 

Montana ................................................... 5 ( 2

 ) 11 647 ( 2 ) 1,136 444 ( 2 ) 969 

Nebraska .................................................. 9 ( 2 ) 11 1,030 ( 2 ) 998 902 ( 2 ) 964 

Nevada ..................................................... 4 ( 2 ) 5 410 ( 2 ) 505 326 ( 2 ) 433 

New Hampshire ....................................... 7 3 5 804 333 981 804 281 936 

New Jersey .............................................. 44 34 32 7,255 6,195 4,264 7,732 5,173 3,741 

New Mexico ............................................. 3 ( 2 ) ( 2 ) 655 ( 2 ) ( 2 ) 655 ( 2 ) ( 2 )

New York ................................................. 116 94 99 18,846 14,132 14,268 20,347 15,757 13,534 

North Carolina .......................................... 17 20 21 3,030 5,906 2,308 2,087 6,363 2,308 

North Dakota ............................................ 8 – 6 1,173 – 744 1,173 – 744 

Ohio ......................................................... 80 38 105 10,740 7,018 19,640 12,397 7,238 13,666 

Oklahoma ................................................. 4 ( 2 ) 3 407 ( 2 ) 361 642 ( 2 ) 590 

Oregon ..................................................... 21 6 10 4,293 1,653 5,785 3,980 994 2,659 

Pennsylvania ............................................ 87 65 64 12,560 6,625 7,377 21,855 12,191 11,077 

Rhode Island ............................................ 6 ( 2

 ) ( 2 ) 685 ( 2 ) ( 2 ) 712 ( 2 ) ( 2 ) 

South Carolina ......................................... 6 10 10 1,094 1,408 1,898 1,129 1,779 1,855 

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

Tennessee ............................................... 8 12 11 2,141 3,313 1,739 1,417 2,650 1,243 

Texas ....................................................... 32 21 22 5,001 2,581 3,310 7,890 3,321 3,722 

Utah ......................................................... 3 ( 2 ) 9 457 ( 2 ) 1,638 358 ( 2 ) 994 

Vermont ................................................... 3 – 5 369 – 468 369 – 468 

Virginia ..................................................... 14 10 16 3,568 1,300 2,808 3,155 1,307 1,615 

Washington .............................................. 32 9 30 6,177 1,917 4,032 5,246 1,069 5,048 

West Virginia ............................................ 8 3 ( 2 ) 1,848 1,067 ( 2 ) 1,207 435 ( 2 )

Wisconsin ................................................. 80 11 57 14,915 2,602 7,967 16,080 2,649 7,625 

Wyoming .................................................. ( 2 ) – ( 2 ) ( 2 ) – ( 2 ) ( 2 ) – ( 2 )

Puerto Rico .............................................. 4 6 11 284 480 1,411 1,471 2,104 1,601 

 1 See footnote 1, table 1. p

 = preliminary.

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

 r = revised.

Layoff events Separations Initial claimants for

unemployment insurance
Table 6. Information technology-producing industries: Extended mass layoff events and separations, private nonfarm sector, 1998-2005

1998

First quarter ............................................ 1,115 178,251 29 5,212 8 1,550 7 725 9 1,685 

Second quarter ...................................... 1,333 336,536 37 8,455 5 357 7 1,317 5 650 

Third quarter .......................................... 1,028 201,186 63 11,066 5 1,175 12 3,031 5 1,051 

Fourth quarter ........................................ 1,383 275,272 37 11,336 5 974 7 1,898 6 764 

 Total ................................................... 4,859 991,245 166 36,069 23 4,056 33 6,971 25 4,150 

1999

First quarter ............................................ 1,262 230,711 35 4,363 10 1,796 10 1,600 6 1,002 

Second quarter ...................................... 1,194 246,251 28 3,891 7 1,731 8 1,097 ( 6 ) ( 6 )

Third quarter .......................................... 898 184,429 22 11,546 7 1,141 5 840 ( 6 ) ( 6 )

Fourth quarter ........................................ 1,202 240,060 18 2,757 5 526 4 807 6 1,430 

 Total ................................................... 4,556 901,451 103 22,557 29 5,194 27 4,344 18 3,930 

2000

First quarter ............................................ 1,081 202,500 22 5,195 14 2,717 9 1,402 4 771 

Second quarter ...................................... 1,055 205,861 18 8,862 22 9,114 7 805 7 977 

Third quarter .......................................... 817 174,628 10 1,678 12 1,422 4 1,465 6 1,280 

Fourth quarter ........................................ 1,638 332,973 16 3,070 22 3,521 5 946 7 1,020 

 Total ................................................... 4,591 915,962 66 18,805 70 16,774 25 4,618 24 4,048 

2001

First quarter ............................................ 1,546 304,171 91 20,991 44 7,963 22 4,441 24 5,312 

Second quarter ...................................... 1,828 430,499 161 38,986 87 12,943 36 12,109 28 6,386 

Third quarter .......................................... 1,629 330,391 142 24,813 55 6,820 39 8,200 36 7,134 

Fourth quarter ........................................ 2,372 459,771 109 17,797 56 8,290 43 10,124 48 11,252 

 Total ................................................... 7,375 1,524,832 503 102,587 242 36,016 140 34,874 136 30,084 

2002

First quarter ............................................ 1,611 299,266 84 18,574 39 4,442 32 8,192 42 6,664 

Second quarter ...................................... 1,624 344,606 69 11,764 49 5,454 27 4,870 53 8,538 

Third quarter .......................................... 1,186 255,152 76 15,017 42 5,415 34 6,529 42 7,945 

Fourth quarter ........................................ 1,916 373,307 74 14,298 32 7,071 19 3,645 39 8,987 

 Total ................................................... 6,337 1,272,331 303 59,653 162 22,382 112 23,236 176 32,134 

2003

First quarter ............................................ 1,502 286,947 71 11,900 33 5,689 23 4,402 41 6,591 

Second quarter ...................................... 1,799 368,273 54 9,221 27 4,124 21 3,098 29 5,891 

Third quarter .......................................... 1,190 236,333 46 6,488 26 4,433 9 1,289 15 2,604 

Fourth quarter ........................................ 1,690 325,333 25 5,080 14 1,984 9 1,619 28 6,635 

 Total ................................................... 6,181 1,216,886 196 32,689 100 16,230 62 10,408 113 21,721 

2004

First quarter ............................................ 1,339 276,503 27 3,222 16 2,992 8 894 23 4,197 

Second quarter ...................................... 1,358 278,831 18 2,959 21 3,576 – – 22 5,295 

Third quarter .......................................... 886 164,608 13 2,288 15 1,617 4 430 13 4,317 

Fourth quarter ........................................ 1,427 273,967 18 3,055 10 1,547 4 563 23 3,457 

 Total ................................................... 5,010 993,909 76 11,524 62 9,732 16 1,887 81 17,266 

2005

First quarter ............................................ 1,142 187,128 13 1,526 13 2,679 4 439 17 3,569 

Second quarter ...................................... 1,203 r 245,790 20 r 2,973 17 2,106 4 842 11 1,904 

Third quarter

r

 .......................................... 1,136 201,276 23 3,280 12 1,742 ( 6 ) ( 6 ) 11 1,127 

Fourth quarterp

 ....................................... 1,299 217,803 19 3,450 7 1,331 ( 6 ) ( 6 ) 7 992 

 Totalp

 .................................................. 4,780 851,997 75 11,229 49 7,858 13 3,000 46 7,592 

 1 Information technology-producing industries are defined in Digital Economy 2003 , services; computer systems design services; computer facilities management

Economics and Statistics Administration, U.S. Department of Commerce. services; other computer related services; office equipment rental and leasing;

 2

 The industries included in this grouping, based on the 2002 North American Industry and computer and office machine repair.

Classification System (NAICS), are: semiconductor machinery manufacturing; office 4 The industries included in this grouping, based on the 2002 North American 

machinery manufacturing; electronic computer manufacturing; computer storage Industry Classification System (NAICS), are: telephone apparatus manufacturing;

device manufacturing; computer terminal manufacturing; other computer peripheral audio and video equipment manufacturing; broadcast and wireless communications

equipment mfg.; electron tube manufacturing; bare printed circuit board manufacturing; equip.; fiber optic cable manufacturing; software reproducing; and magnetic and

semiconductors and related device mfg.; electronic capacitor manufacturing; electronic optical recording media mfg.

resistor manufacturing; electronic coils, transformers, and inductors; electronic 5 The industries included in this grouping, based on the 2002 North American 

connector manufacturing; printed circuit assembly manufacturing; other electronic Industry Classification System (NAICS), are: wired telecommunications carriers

component manufacturing; industrial process variable instruments; electricity and signal cellular and other wireless carriers; telecommunications resellers; cable and other

testing instruments; analytical laboratory instrument mfg.; computer and software program distribution; satellite telecommunications; other telecommunications;

merchant wholesalers; and computer and software stores. and communication equipment repair.

 3 The industries included in this grouping, based on the 2002 North American Industry 6 Data do not meet BLS or state agency disclosure standards. 

Classification System (NAICS), are: software publishers; internet service providers; NOTE: Dash represents zero.

web search portals; data processing and related services; computer and software r = revised. 

merchant wholesalers; computer and software stores; custom computer programming p = preliminary. 

Year

Separations Separations Separations

hardware2 computer services3

Layoff

events

Total extended

mass layoffs

Information technology-producing industries1

Computer Software and Communications Communications

Separations Layoff

events Separations Layoffevents

equipment4 services5

Layoff

events

Layoff

events
Table 7. Industry distribution: Extended mass layoff events and separations associated with the movement of work,

selected quarters, 2004 and 2005

IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p 

 Total, private nonfarm1 ............................................... 83 68 54 19,599 15,497 9,851 

 Mining .......................................................................... ––––––

 Utilities ......................................................................... – – ( 2 ) – – ( 2 )

 Construction ................................................................. – – – – – –

 Manufacturing .............................................................. 56 43 38 12,782 7,546 7,719 

 Food ........................................................................ 5 5 4 1,401 929 816 

 Beverage and tobacco products ............................. – – – – – –

 Textile mills ............................................................. ( 2 ) ( 2 ) 3 ( 2 ) ( 2 ) 323 

 Textile product mills ................................................ – ( 2 ) – – ( 2 ) –

 Apparel ................................................................... 3 3 3 1,405 362 540 

 Leather and allied products .................................... ( 2 ) – ( 2 ) ( 2 ) – ( 2 )

 Wood products ........................................................ ( 2 ) – – ( 2 ) – –

 Paper ...................................................................... 3 4 – 380 695 –

 Printing and related support activities ..................... ( 2 ) – ( 2 ) ( 2 ) – ( 2 )

 Petroleum and coal products .................................. – – – – – –

 Chemicals .............................................................. ( 2

 ) 3 ( 2 ) ( 2 ) 563 ( 2 ) 

 Plastics and rubber products .................................. ( 2 ) ( 2 ) – ( 2 ) ( 2 ) –

 Nonmetallic mineral products ................................. – – ( 2 ) – – ( 2 )

 Primary metals ........................................................ ( 2 ) – – ( 2 ) – –

 Fabricated metal products ...................................... ( 2 ) 7 ( 2 ) ( 2 ) 749 ( 2 )

 Machinery ............................................................... 3 3 ( 2 ) 604 594 ( 2 )

 Computer and electronic products .......................... 7 6 7 2,390 1,169 1,469 

 Electrical equipment and appliances ...................... 4 ( 2 ) ( 2 ) 960 ( 2 ) ( 2 )

 Transportation equipment ....................................... 8 7 5 1,440 1,665 1,567 

 Furniture and related products ................................ 8 – 3 1,863 – 347 

 Miscellaneous manufacturing ................................. 3 – ( 2 ) 692 – ( 2 )

 Wholesale trade ........................................................... 3 5 ( 2

 ) 307 744 ( 2 ) 

 Retail trade .................................................................. 3 4 ( 2 ) 1,429 1,078 ( 2 )

 Transportation and warehousing ................................. 3 4 – 619 4,489 –

 Information ................................................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

 Finance and insurance ................................................ 7 6 4 1,449 695 746 

 Real estate and rental and leasing .............................. ( 2 ) – – ( 2 ) – –

 Professional and technical services ............................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

 Management of companies and enterprises ............... ( 2 ) – – ( 2 ) – –

 Administrative and waste services ............................... 5 ( 2 ) 4 813 ( 2 ) 411 

 Educational services .................................................... – – – – – –

 Health care and social assistance ............................... – ( 2 ) – – ( 2 ) –

 Arts, entertainment, and recreation ............................. – – – – – –

 Accommodation and food services .............................. ( 2 ) – ( 2 ) ( 2 ) – ( 2 )

 Other services, except public administration ............... – ( 2 ) – – ( 2 ) –

 Unclassified ................................................................. ––––––

 

 1 See footnote 1, table 1. p = preliminary.

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

 r = revised.

Layoff events Separations

Industry
Table 8. Reason for layoff: Extended mass layoff events and separations associated with the movement of work, 

selected quarters, 2004 and 2005

IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p 

 Total, private nonfarm1 .................................. 83 68 54 19,599 15,497 9,851 

Automation ....................................................... ( 2

 ) – – ( 2 ) – –

Bankruptcy ....................................................... – ( 2 ) – – ( 2 ) –

Business ownership change ............................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

Contract cancellation ........................................ 3 ( 2 ) ( 2 ) 424 ( 2 ) ( 2 )

Contract completed .......................................... – ( 2 ) – – ( 2 ) –

Energy-related .................................................. – – – – – –

Environment-related ......................................... – – – – – –

Financial difficulty ............................................. 5 6 ( 2 ) 2,025 791 ( 2 )

Import competition ............................................ 5 6 8 586 1,183 1,399 

Labor dispute ................................................... – ( 2 ) – – ( 2 ) –

Material shortage ............................................. – ( 2 ) – – ( 2 ) –

Model changeover ............................................ – – – – – –

Natural disaster ................................................ ––––––

Non-natural disaster ......................................... – – – – – –

Plant or machine repair .................................... – – – – – –

Product line discontinued ................................. 3 5 – 1,033 481 –

Reorganization within company ....................... 49 39 37 10,733 7,714 7,132 

Seasonal work .................................................. ( 3 ) ( 3 ) ( 3 ) ( 3 ) ( 3 ) ( 3 )

Slack work ........................................................ 4 ( 2 ) ( 2 ) 594 ( 2 ) ( 2 )

Vacation period ................................................ ( 3 ) ( 3 ) ( 3 ) ( 3 ) ( 3 ) ( 3 )

Weather-related ............................................... – – – – – –

Other ................................................................ 11 ( 2 ) 4 3,551 ( 2 ) 624 

Not reported ..................................................... – – – – – –

 1 See footnote 1, table 1. r = revised.

 2

 Data do not meet BLS or state agency disclosure standards. p = preliminary.

 3

 The questions on movement of work were not asked of employers NOTE: Dash represents zero.

when the reason for layoff was either seasonal work or vacation period.

Layoff events Separations

Reason for layoff
Table 9. Census region and division: Extended mass layoff events and separations associated with the movement of work,

selected quarters, 2004 and 2005

Census region and division

Layoff events Separations

IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p 

 United States1 ...................................... 83 68 54 19,599 15,497 9,851 

Northeast ..................................................... 15 10 13 3,526 1,651 2,321 

 New England ........................................... 5 5 ( 2

 ) 1,211 653 ( 2 ) 

 Middle Atlantic ......................................... 10 5 ( 2 ) 2,315 998 ( 2 )

South ........................................................... 26 22 17 7,901 3,961 2,860 

 South Atlantic ........................................... 19 ( 2

 ) 11 4,647 ( 2 ) 1,544 

 East South Central ................................... ( 2 ) ( 2 ) 3 ( 2 ) ( 2 ) 253 

 West South Central .................................. ( 2 ) ( 2 ) 3 ( 2 ) ( 2 ) 1,063 

Midwest ........................................................ 21 17 12 4,679 7,347 2,878 

 East North Central ................................... ( 2

 ) 14 9 ( 2 ) 3,551 1,935 

 West North Central .................................. ( 2 ) 3 3 ( 2 ) 3,796 943 

West ............................................................. 21 19 12 3,493 2,538 1,792 

 Mountain .................................................. 5 ( 2

 ) ( 2 ) 728 ( 2 ) ( 2 ) 

 Pacific ...................................................... 16 ( 2 ) ( 2 ) 2,765 ( 2 ) ( 2 )

 1 See footnote 1, table 1. District of Columbia, Florida, Georgia, Maryland, North Carolina, South 

 2 Data do not meet BLS or state agency disclosure standards. Carolina, Virginia, and West Virginia; East South Central: Alabama, 

 r = revised. Kentucky, Mississippi, and Tennessee; West South Central: Arkansas,

 p = preliminary. Louisiana, Oklahoma, and Texas: East North Central: Illinois, Indiana, 

 NOTE: The States (including the District of Columbia) that comprise Michigan, Ohio, and Wisconsin; West North Central: Iowa, Kansas, 

 the census divisions are: New England: Connecticut, Maine, Massa- Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: 

chusetts, New Hampshire, Rhode Island, and Vermont; Middle Atlantic: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and 

New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.
Table 10. Extended mass layoff events and separations, selected measures, selected quarters, 2004 and 2005

IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p

Total, private nonfarm1 ................................................... 1,427 1,136 1,299 273,967 201,276 217,803 

 Total, excluding seasonal

 and vacation events2

 .............................................. 760 953 572 144,108 163,622 94,190 

 Total, movement of work3

 ....................................... 83 68 54 19,599 15,497 9,851 

 Movement of work actions ................................. 138 83 73 ( 4 ) ( 4 ) ( 4 )

 With separations reported ............................ 95 62 50 13,351 8,035 6,271 

 With separations unknown ........................... 43 21 23 ( 4 ) ( 4 ) ( 4 )

 1 See footnote 1, table 1. 4 Data are not available.

 2 The question on movement of work were not asked of employers r = revised.

when the reason for layoff was either seasonal work or vacation period. p = preliminary.

 3 Movement of work can involve more than one action.

Layoff events Separations

Action
Table 11. Movement of work actions by type of separation where number of separations is known by employers,

selected quarters, 2004 and 2005

IV III IV IV III IV

2004 2005r 2005p 2004 2005r 2005p

With separations reported2 ................................. 95 62 50 13,351 8,035 6,271 

By location

 Out-of-country relocations ................................ 32 20 19 5,258 2,702 2,047 

 Within company ............................................ 29 15 14 4,825 2,137 1,355 

 Different company ........................................ 3 5 5 433 565 692 

 Domestic relocations ........................................ 63 42 31 8,093 5,333 4,224 

 Within company ............................................ 55 32 26 7,285 3,075 3,823 

 Different company ........................................ 8 10 5 808 2,258 401 

 Unable to assign place of 

 relocation ....................................................... ––––––

By company

 Within company ................................................ 84 47 40 12,110 5,212 5,178 

 Domestic ....................................................... 55 32 26 7,285 3,075 3,823 

 Out of country ............................................... 29 15 14 4,825 2,137 1,355 

 Unable to assign ........................................... ––––––

 Different company ............................................ 11 15 10 1,241 2,823 1,093 

 Domestic ....................................................... 8 10 5 808 2,258 401 

 Out of country ............................................... 3 5 5 433 565 692 

 Unable to assign ........................................... ––––––

 1

 Only actions for which separations associated with the r = revised.

movement of work were reported are shown. p = preliminary.

 2

 See footnote 1, table 1. Note: Dash represents zero.

Actions

Layoff events1 Separations