Technical information:  (202) 691-6392     USDL 02-44
http://www.bls.gov/mls/
                                           For release: 10:00 A.M. EST
Media contact:                691-5902     Tuesday, January 29, 2002

                                     
                       MASS LAYOFFS IN DECEMBER 2001


   In December 2001, there were 2,425 mass layoff actions by employers as
measured by new filings for unemployment insurance benefits during the
month, according to data from the U.S. Department of Labor's Bureau of
Labor Statistics.  Each action involved at least 50 persons from a single
establishment, and the number of workers involved totaled 267,839.  (See
table 1.)  The number of layoff events and initial claimants for unemploy-
ment insurance, while lower than in December 2000, were the second highest 
for the month of December since the series began in April 1995.  (December 
2001 contained 4 weeks for possible mass layoffs, compared with 5 weeks in 
December 2000.)
   
   The total of layoff events for all of 2001, at 21,345, and the total
number of initial claimants, at 2,496,784, were considerably higher than in
2000 (15,738 and 1,835,592, respectively).   Additional information on the
annual data is provided in the review of 2001 section on page 2 of this
release.
   
Industry Distribution

   Manufacturing industries accounted for 46 percent of all mass layoff
events and 52 percent of all initial claims filed in December 2001.  A year
earlier, layoffs in manufacturing accounted for 39 percent of events and 
50 percent of initial claims.  The highest numbers of initial claimants had
worked in transportation equipment (21,344, mostly in motor vehicles parts
and accessories), electronic and other electrical equipment (17,928,
primarily in electronic components and in semiconductors and related
devices), and industrial machinery and equipment (15,727, largely in
refrigeration and heating equipment and in construction machinery).  
(See table 2.)
   
   Services accounted for 15 percent of events and initial claims filed
during the month, with layoffs concentrated in business services,
particularly help supply services.  Fifteen percent of all layoff 
events and 11 percent of initial claims filed during the month were in
construction, mostly in heavy construction, except buildings.  Retail 
trade accounted for an additional 8 percent of both events and initial 
claims, primarily in eating and drinking places.  Transportation and 
public utilities accounted for 6 percent of events and 7 percent of 
initial claims in December, mostly in local and interurban passenger 
transit (school buses).
   
   Compared with December 2000, the largest decreases in initial claims
were reported in transportation equipment (-18,998), motion pictures 
(-6,611), and heavy construction, except buildings (-4,919).  The largest
over-the-year increase in initial claims was reported in electronic and
other electrical equipment (+2,893).
   
                                  - 2 -

Geographic Distribution

   In December, the highest number of initial claims due to mass layoffs
was in the Midwest--119,250--largely in transportation equipment and heavy
construction (except buildings).  (See table 3.)  The Northeast region
continued to register the lowest number of mass layoff-related initial
claims, 40,843.
   
   The number of initial claimants in mass layoffs declined in the Midwest
(-38,236), the West (-15,803), and the South (-5,020).  Six 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 East
North Central division (-37,840).  Over the year, the largest increase in
initial claims occurred in the West South Central division (+4,408).
   
   California registered the largest number of initial claims filed in
mass layoff events, 39,239, mostly in business services (help supply
services), followed by Michigan (34,681, primarily in transportation
equipment), Pennsylvania (19,592, largely in electronic and other
electrical equipment and in primary metals), Wisconsin (16,573, mostly 
in primary metals), and Illinois (15,387, particularly in industrial
machinery).  These five states accounted for 49 percent of all layoff
events and 47 percent of all initial claims for unemployment insurance.
(See table 4.)
   
   Illinois reported the largest over-the-year decrease (-13,770) in
initial claims, followed by California (-13,337).  The largest over-the-
year increase occurred in Kansas (+4,116).
   
Review of 2001

   During 2001, 21,345 layoff events occurred in the nation, resulting in
2,496,784 initial claims filings for unemployment insurance.  Both the
number of events and the number of initial claimants were the highest in
the nearly 7-year history of the program. (See table A.)
   
   Manufacturing accounted for 42 percent of all mass layoff events and 49
percent of initial claims filed during 2001, the largest annual shares to
date.  Initial claim filings were most numerous in transportation equipment
(256,703), followed by electronic and other electrical equipment (167,125)
and industrial machinery and equipment (146,265).  Compared with 2000, the
largest increase in initial claims occurred in electronic and other
electrical equipment (+113,155).  The largest over-the-year decrease in
initial claims occurred in lumber and wood products (-5,062).
   
   The number of initial claims filed in 2001 due to mass layoffs was
higher in the Midwest (841,597) than any other region.  Layoffs in
transportation equipment, industrial machinery and equipment, and
electronic and other electrical equipment accounted for 39 percent of the
claims in the Midwest. The fewest number of mass-layoff initial claims was
reported in the Northeast region (340,246).  Over-the-year increases in
mass-layoff initial claims occurred in each of the four regions, with the
largest in the Midwest (+258,307).  Among the 50 states and the District of
Columbia, California recorded the largest number of initial claims filed in
mass layoff events for the period (600,501).  Michigan reported the largest
over-the-year increase in initial claims (+66,819), followed by California
(+63,828).  The largest over-the-year decrease (-4,740) occurred in
Virginia.

                                  - 3 -

Table A. Number of mass layoff events and initial
claimants for unemployment insurance, 1996-2001
---------------------------------------------------------
           |                    |
           |                    |   Initial claimants for
   Year    |    Layoff events   |  unemployment insurance
           |                    |
---------------------------------------------------------
 1996      |       14,111       |       1,437,628
 1997      |       14,960       |       1,542,543
 1998      |       15,904       |       1,771,069
 1999      |       14,909       |       1,572,399
 2000      |       15,738       |       1,835,592
 2001p     |       21,345       |       2,496,784
---------------------------------------------------------
 p=preliminary.

Note
   
   The monthly data series in this release cover mass layoffs of 50 or
more workers beginning in a given month, regardless of the duration of the
layoffs.  Information on the length of the layoff is obtained later and
issued in a quarterly release that reports on mass layoffs lasting more
than 30 days (referred to as "extended mass layoffs") and provides more
information on the industry classification and location of the establish-
ment 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 Technical Note 
for more detailed definitions.
   
                      ______________________________
   
   The report on Extended Mass Layoffs in the Fourth Quarter of 2001 will
be issued on Wednesday, February 13, 2002.
  
                                  - 4 -

  -------------------------------------------------------------------
 |             Change in Industry Classification System              |
 |                                                                   |
 |   December and fourth quarter 2001 data will be the last from     |
 |the Mass Layoff Statistics (MLS) program using the 1987 Standard   |
 |Industrial Classification (SIC) system.  Beginning with the release|
 |of data for January 2002 in late February 2002, the program will   |
 |switch to the 2002 version of the North American Industry Classi-  |
 |fication System (NAICS) as the basis for the assignment and tabula-|
 |tion of economic data by industry.  NAICS is the product of a      |
 |cooperative effort on the part of the statistical agencies of the  |
 |United States, Canada, and Mexico.  Due to differences in NAICS    |
 |and SIC structures, data by industry for 2002 will not be compar-  |
 |able to the SIC-based data for earlier years.  However, the monthly|
 |historical industry series from April 1995 through December 2001   |
 |will be available on both SIC and NAICS bases.                     |
 |                                                                   |
 |   NAICS uses a production-oriented approach to categorize economic|
 |units.  Units with similar production processes are classified in  |
 |the same industry.  NAICS focuses on how products and services are |
 |created, as opposed to the SIC focus on what is produced. This ap- |
 |proach yields significantly different industry groupings than those|
 |produced by the SIC approach.                                      |
 |                                                                   |
 |   Users interested in more information about NAICS can access the |
 |BLS Web page at http://www.bls.gov/bls/naics.htm or the Bureau of  |
 |the Census Web page at http://www.census.gov/epcd/www/naics.html.  |
  -------------------------------------------------------------------
Technical Note
 
 
 
 The Mass Layoff Statistics (MLS) program is a federal-state program that
uses a standardized, automated approach to identifying, describing, and
tracking the effects of major job cutbacks, using data from each state's
unemployment insurance database.  Each month, states report on
establishments which have at least 50 initial claims filed against them
during a consecutive 5-week period.  These establishments then are
contacted by the state agency to determine whether these separations lasted
31 days or longer, and, if so, other information concerning the layoff is
collected.  States report on layoffs lasting more than 1 month on a
quarterly basis.
 
 A given month contains an aggregation of the weekly unemployment
insurance claims filings for the Sunday through Saturday weeks in that
month.  All weeks are included for the particular month, except if the
first day of the month falls on Saturday.  In this case, the week is
included in the prior month's tabulations.  This means that some months
will contain 4 weeks and others 5 weeks, and the number of weeks in a given
month may be different from year to year.  Therefore, analysis of over-the-
month and over-the-year change should take this calendar effect into
consideration.
 
 The MLS program resumed operations in April 1995 after it had been
terminated in November 1992 due to lack of funding.  Prior to April 1995,
monthly layoff statistics were not available.
 
 Information in this release will be made available to sensory
impaired individuals upon request.  Voice phone: 202-691-5200; 
TDD message referral phone number:  1-800-877-8339.
 
Definitions
 
 Initial claimant.  A person who files any notice of unemployment to
initiate a request either for a determination of entitlement to and
eligibility for compensation, or for a subsequent period of unemployment
within a benefit year or period of eligibility.
 
 Mass layoff event.  Fifty or more initial claims for unemployment
insurance benefits filed against an establishment during a 5-week period,
regardless of duration.
Table 1. Mass layoff events and initial claimants for unemployment insurance, October 1999 to December 2001


                                                         Extended mass layoffs 
                                                       lasting more than 30 days
             Date                                                                               
                              Total mass layoffs                                           Realization rates(1)
                                                                                           
                                                                                                
                                          Initial                         Initial                        Initial 
                              Events     claimants        Events         claimants         Events       claimants
                                          
             1999

 October ...................   1,098      118,938
 November ..................   1,336      139,508
 December ..................   1,509      162,381

 Fourth Quarter ............   3,943      420,827         1,625           287,685           41.2           68.4
                                          
             2000

 January ...................   1,934      223,322
 February ..................   1,045      103,898
 March .....................     986      106,748

 First Quarter .............   3,965      433,968         1,330           221,368           33.5           51.0
                                          
 April .....................     924      101,359
 May .......................     984       92,193
 June ......................   1,597      192,025

 Second Quarter ............   3,505      385,577         1,271           231,471           36.3           60.0
                                          
 July ......................   1,333      164,978
 August ....................     751       97,215
 September .................     936      106,842

 Third Quarter .............   3,020      369,035         1,014           189,250           33.6           51.3
                                          
 October ...................     874      103,755
 November ..................   1,697      216,514
 December ..................   2,677      326,743

 Fourth Quarter ............   5,248      647,012         2,005           376,362           38.2           58.2
                                          
             2001

 January ...................   1,522      200,343
 February ..................   1,501      172,908
 March .....................   1,527      171,466

 First Quarter .............   4,550      544,717         1,765           338,596           38.8           62.2
                                          
 April .....................   1,450      175,911
 May .......................   1,426      157,759
 June ......................   2,081      250,359

 Second Quarter ............   4,957      584,029         2,055           387,880           41.5           66.4
                                          
 July ......................   2,108      272,308
 August ....................   1,474      163,263
 September .................   1,316      158,859

 Third Quarter .............   4,898      594,430    (2)(p)1,689     (2)(p)233,780        (p)34.5       (p)39.3
                                          
 October ...................   1,816      212,695
 November(p)................   2,699      293,074
 December(p)................   2,425      267,839

    1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days.  The
initial claimant realization rate is the percentage of total mass-layoff initial claimants associated with 
layoffs lasting more than 30 days.                                          
    2 These quarterly numbers are provisional and will increase as more data on these layoffs become available.
Recent 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                                                                     

                                                     December  October   November  December  December  October  November   December
                                                       2000      2001     2001(p)   2001(p)    2000      2001    2001(p)    2001(p)

     Total(1) ......................................  2,677     1,816     2,699     2,425     326,743  212,695   293,074    267,839

Total, private .....................................  2,605     1,753     2,645     2,371     320,875  206,622   288,224    263,126

  Agriculture ......................................    152        99       312        89      11,007    8,134    22,476      6,503
  Nonagriculture ...................................  2,388     1,653     2,330     2,278     301,367  198,431   265,506    256,351
    Manufacturing ..................................  1,056       729     1,129     1,111     164,578  105,505   152,916    138,128
      Durable goods ................................    676       503       750       743     118,984   78,371   104,309     98,019
        Lumber and wood products ...................     88        28        59        73       9,636    3,205     7,256      7,516
        Furniture and fixtures .....................     43        27        46        40       5,735    3,193     5,025      5,630
        Stone, clay, and glass products ............     56        20        33        48       7,397    2,596     3,397      4,621
        Primary metal industries ...................     75        58       103        75      12,796    8,334    13,098     11,009
        Fabricated metal products ..................     89        49        75       117       9,500    6,858     7,559     10,555
        Industrial machinery and equipment .........     88        91       139       112      14,979   11,988    19,587     15,727
        Electronic and other electrical equipment ..     65       101       121       122      15,035   13,080    18,295     17,928
        Transportation equipment ...................    139        99       133       121      40,342   25,524    24,691     21,344
        Instruments and related products ...........     10        21        14        14       1,080    2,677     1,686      1,291
        Miscellaneous manufacturing industries .....     23         9        27        21       2,484      916     3,715      2,398

      Nondurable goods .............................    380       226       379       368      45,594   27,134    48,607     40,109
        Food and kindred products ..................     98        73       121       100      11,932    8,467    12,398     11,218
        Tobacco products ...........................      4         -     ( 2 )     ( 2 )         338        -     ( 2 )      ( 2 )
        Textile mill products ......................     50        30        57        46       7,874    6,073     8,445      6,538
        Apparel and other textile products .........     66        43        44        44       6,395    5,078     6,637      3,543
        Paper and allied products ..................     27        13        30        28       2,876    1,315     4,363      2,441
        Printing and publishing ....................     16        14        24        23       1,788    1,063     2,342      1,633
        Chemicals and allied products ..............     14        16        13        14       1,201    1,429     1,377      1,228
        Petroleum and coal products ................     14     ( 2 )     ( 2 )     ( 2 )       1,437    ( 2 )     ( 2 )      ( 2 )
        Rubber and miscellaneous plastics products .     81        34        68        90      10,498    3,401    10,876     11,188
        Leather and leather products ...............     10     ( 2 )        11        14       1,255    ( 2 )       958      1,466

    Nonmanufacturing ...............................  1,332       924     1,201     1,167     136,789   92,926   112,590    118,223
      Mining .......................................     26        10        22        30       2,379    1,191     2,396      3,473
      Construction .................................    433        99       312       359      37,175    8,692    28,508     28,444
      Transportation and public utilities ..........    152       141       120       150      17,514   15,950    11,384     18,909
      Wholesale and retail trade ...................    247       182       221       231      26,324   16,742    21,240     24,326
         Wholesale trade ...........................     48        39        57        35       4,796    3,228     4,601      2,612
         Retail trade ..............................    199       143       164       196      21,528   13,514    16,639     21,714
      Finance, insurance, and real estate ..........     26        43        43        31       2,177    3,620     3,685      2,367
      Services .....................................    448       449       483       366      51,220   46,731    45,377     40,704

  Not identified ...................................     65         1         3         4       8,501       57       242        272

Government .........................................     72        63        54        54       5,868    6,073     4,850      4,713
  Federal ..........................................      6        20        10         7         583    2,151     1,020        651
  State ............................................     20        18        20        15       1,705    1,890     1,826      1,205
  Local ............................................     46        25        24        32       3,580    2,032     2,004      2,857


  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
                                                                                                     
                                             Mass layoff events                              Initial claimants for
                                                                                             unemployment insurance
  Census region and division


                                December    October    November    December      December     October    November    December
                                  2000        2001      2001(p)     2001(p)        2000         2001      2001(p)     2001(p)

         United States(1) ....   2,677       1,816       2,699       2,425        326,743     212,695     293,074     267,839

 Northeast ...................     397         273         388         401         40,688      29,900      41,738      40,843

     New England .............      95          57          76         116         10,739       7,258       8,813      12,809
     Middle Atlantic .........     302         216         312         285         29,949      22,642      32,925      28,034

 South .......................     487         433         517         436         56,297      49,275      66,838      51,277

     South Atlantic ..........     246         238         287         185         29,409      24,849      35,748      19,366
     East South Central ......     119          64          90         124         14,617       7,944      13,464      15,232
     West South Central ......     122         131         140         127         12,271      16,482      17,626      16,679

 Midwest .....................   1,079         450         793       1,013        157,486      68,814     101,147     119,250

     East North Central ......     837         360         615         774        125,559      51,022      79,965      87,719
     West North Central ......     242          90         178         239         31,927      17,792      21,182      31,531

 West ........................     714         660       1,001         575         72,272      64,706      83,351      56,469

     Mountain ................      94          68         120          83          9,093       6,361      14,802       8,547
     Pacific .................     620         592         881         492         63,179      58,345      68,549      47,922


      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       

                                December    October    November    December       December     October     November     December
                                  2000        2001      2001(p)     2001(p)         2000         2001       2001(p)      2001(p)

    Total(1) .................   2,677       1,816       2,699       2,425        326,743      212,695      293,074      267,839

 Alabama .....................      17           9          23          12          2,086        1,113        2,402        1,902
 Alaska ......................       7           4           6           3            619          381          651          237
 Arizona .....................       6          12          17          10            408          823        1,663          831
 Arkansas ....................      14           5          11          10          1,765          734        2,500        1,030
 California ..................     534         516         782         406         52,576       48,316       57,804       39,239
 Colorado ....................      12          16          29          14            983        1,594        3,044        1,295
 Connecticut .................       7           6           9           9            677          366          745          674
 Delaware ....................   ( 2 )           8       ( 2 )           4          ( 2 )          970        ( 2 )          521
 District of Columbia ........       3           3       ( 2 )       ( 2 )            265          350        ( 2 )        ( 2 )
 Florida .....................      66         119         102          54          4,956        9,065       10,138        4,136
 Georgia .....................      29          16          26          15          2,965        1,742        3,714        1,268
 Hawaii ......................   ( 2 )          20          10           5          ( 2 )        2,130          924          494
 Idaho .......................      17          11          27          17          2,201        1,638        3,250        1,914

 Illinois ....................     157          83         106         130         29,157       12,717       13,648       15,387
 Indiana .....................      95          43          65          77         17,391        5,845        8,775        9,516
 Iowa ........................      67          26          50          63          9,619        3,598        6,647        7,523
 Kansas ......................      19           5          13          25          1,949        2,940        1,613        6,065
 Kentucky ....................      68          28          44          74          9,418        4,078        8,863        9,912
 Louisiana ...................      20           5           7           9          1,345          282          537          565
 Maine .......................      10       ( 2 )           7           7          1,168        ( 2 )          827          571
 Maryland ....................       9           7          11           6            709          651          878          451
 Massachusetts ...............      41          39          41          52          3,887        4,612        4,617        5,534
 Michigan ....................     301          88         158         298         43,436       10,349       23,102       34,681
 Minnesota ...................      55          19          62          55          7,140        1,989        6,934        6,181
 Mississippi .................      11          11           7          11          1,110        1,288          499          740
 Missouri ....................      93          36          33          70         12,435        8,844        3,704        8,799
 Montana .....................       4       ( 2 )           5           4            585        ( 2 )          562          728
 Nebraska ....................       4       ( 2 )          10          19            367        ( 2 )        1,347        2,324
 Nevada ......................      44          23          18          30          4,091        1,797        2,730        3,202
 New Hampshire ...............      10           3           6          17          1,445        1,213        1,277        1,930
 New Jersey ..................      51          40          48          45          5,250        6,229        5,155        5,416
 New Mexico ..................       5       ( 2 )       ( 2 )           4            292        ( 2 )        ( 2 )          246
 New York ....................      41          47          51          35          3,980        4,546        5,384        3,026
 North Carolina ..............      25          29          46          20          2,893        3,997        4,764        1,869
 North Dakota ................   ( 2 )       ( 2 )           8           4          ( 2 )        ( 2 )          809          352
 Ohio ........................     142          73         103         123         18,623       13,435       10,918       11,562
 Oklahoma ....................      13          11          14          19            937        1,237        2,648        3,214
 Oregon ......................      42          30          54          54          5,545        5,009        6,674        5,946
 Pennsylvania ................     210         129         213         205         20,719       11,867       22,386       19,592

 Rhode Island ................      19           4           6          19          2,522          464          772        2,288
 South Carolina ..............      51          36          61          36          8,404        5,361       10,651        5,049
 South Dakota ................       3           -       ( 2 )           3            362            -        ( 2 )          287
 Tennessee ...................      23          16          16          27          2,003        1,465        1,700        2,678
 Texas .......................      75         110         108          89          8,224       14,229       11,941       11,870
 Utah ........................       6           3          20           4            533          307        3,184          331
 Vermont .....................       8           3           7          12          1,040          462          575        1,812
 Virginia ....................      59          20          35          47          8,561        2,713        5,125        5,875
 Washington ..................      36          22          29          24          4,379        2,509        2,496        2,006
 West Virginia ...............   ( 2 )           -           3       ( 2 )          ( 2 )            -          229        ( 2 )
 Wisconsin ...................     142          73         183         146         16,952        8,676       23,522       16,573
 Wyoming .....................       -       ( 2 )       ( 2 )           -              -        ( 2 )        ( 2 )            -

 Puerto Rico .................      18          12          13           9          2,413        1,035        1,524        1,281


  1 See footnote 1, table 2.
  2 Data do not meet BLS or state agency disclosure standards. 
  p = preliminary.
  NOTE: Dash represents zero.