Technical information:  (202) 691-6392     USDL 04-287
http://www.bls.gov/mls/

                                           For release: 10:00 A.M. EST
Media contact:                691-5902     Wednesday, February 25, 2004


                       MASS LAYOFFS IN JANUARY 2004
   
   
   In January 2004, there were 2,428 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 239,454.  (See
table 1.)  This marked the most events for a January and the third highest
January level of mass-layoff initial claims since the series began.  Both
the number of layoff events and initial claims were higher than a year ago.
January 2004 marked only the third time in the last two years that initial
claims had increased over the year.
   
Industry Distribution
   
   Temporary help services, with 17,544 initial claimants, and school 
and employee bus transportation, with 8,631 initial claimants, together
accounted for 11 percent of all initial claims in January.  The latter
industry reached a peak for a January this month.  (See table A.)  The 
10 industries reporting the highest number of mass-layoff initial claims
accounted for 62,597 initial claims in January, 26 percent of the total.
   
   The manufacturing sector recorded 35 percent of all mass layoff events
and 37 percent of all initial claims filed in January.  A year ago, manu-
facturing reported 36 percent of events and 40 percent of initial claims.  
Within manufacturing, the number of claimants was highest in transportation 
equipment (15,107, mostly automotive-related) and in food processing (11,083, 
mainly in fruits and vegetables).  (See table 2.)
   
   The administrative and waste services sector accounted for 12 percent 
of both events and initial claims filed in January, with layoffs mostly in
temporary help services.  Construction accounted for 13 percent of events
and 10 percent of initial claims during the month, primarily in heavy and
civil engineering construction and among specialty trade contractors.
Eight percent of all layoff events and 9 percent of initial claims filed
during the month were in retail trade, mainly in general merchandise
stores, especially in discount department stores, which recorded a series
peak for January.  An additional 5 percent of events and 6 percent of
initial claims in January were in transportation and warehousing.
   
   Government establishments accounted for 4 percent of events and 5
percent of initial claims filed during the month, particularly in the
administration of economic programs and in educational services.  The
number of initial claims in government was the highest for a January 
since 1998.
   
   Compared with January 2003, the largest increases in initial claims were
reported in motion picture and sound recording (+3,838), transit and ground
passenger transportation (+3,096), transportation equipment (+2,927), food
manufacturing (+2,830), and heavy and civil engineering construction (+2,711).  
The largest over-the-year decreases in initial claims were reported in com-
puter and electronic products (-3,816) and in air transportation (-3,695).

                                   - 2 -                                                                              

Table A.  Industries with the largest mass-layoff initial claims in 
January 2004p
------------------------------------------------------------------------------
                                           |          |       January peak
                 Industry                  | Initial  |-----------------------
                                           |  claims  |  Year  |Initial claims
------------------------------------------------------------------------------
                                           |          |        |
Temporary help services ...................| 17,544   |  1998  |    26,224
School and employee bus transportation ....|  8,631   |  2004  |     8,631
Highway, street, and bridge construction ..|  6,075   |  2000  |     9,680
Discount department stores ................|  6,063   |  2004  |     6,063
Motion picture and video production .......|  5,439   |  1998  |    12,038
Professional employer organizations .......|  4,736   |  2002  |     5,033
Automobile manufacturing ..................|  4,378   |  2001  |    21,093
Farm labor contractors and crew leaders ...|  3,694   |  1999  |     5,859
Hotels and motels, except casino hotels ...|  3,355   |  1997  |     4,460
Broadwoven fabric mills ...................|  2,682   |  2002  |     5,419
------------------------------------------------------------------------------
  p=preliminary.

Geographic Distribution

   Among the four regions, the highest number of initial claims in January
due to mass layoffs was reported in the Midwest, 68,404.  (See table 3.)
Transportation equipment manufacturing and administrative and waste ser-
vices accounted for 23 percent of all initial claims in that region during 
the month.  The West region was next, with 67,285 initial claims, followed 
by the South, with 53,115, and the Northeast, with 50,650.
   
   The number of initial claimants in mass layoffs rose over the year in
the Midwest (+16,242) and the Northeast (+6,254), and declined in the South
(-8,372) and the West (-100).  Four of the nine geographic divisions had
over-the-year increases in the number of initial claims associated with mass 
layoffs, with the largest increases in the East North Central (+17,066) and 
Middle Atlantic (+7,493) divisions.  The South Atlantic (-7,126) and East 
South Central (-2,142) divisions reported the largest declines in mass-layoff 
initial claims.
   
   Among the states, California recorded the largest number of initial
claims filed in mass layoff events in January, 51,395, mostly in admin-
istrative and support services. New York reported 24,376 initial claims, 
followed by Michigan (16,615) and Ohio (15,169).  These four states ac-
counted for 45 percent of both layoff events and initial claims for
unemployment insurance.  (See table 4.)
                                 
   Michigan reported the largest over-the-year increase in the number of
initial claims (+14,633), followed by New York (+5,570).  The largest over-
the-year decrease occurred in South Carolina (-2,391).
   
                                   - 3-                                                    

Note
   
   The monthly data series in this release cover mass layoffs of 50 or 
more workers beginning in a given month, regardless of the duration of 
the layoffs.  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").  The quar-
terly release provides more information on the industry classification 
and location of the establishment and on the demographics of the laid-off
workers.  Because monthly figures include short-term layoffs of 30 days 
or less, the sum of the figures for the 3 months in a quarter will be 
higher than the quarterly figure for mass layoffs of more than 30 days.  
(See table 1.)  See the Technical Note for more detailed definitions.
   
                       _____________________________
   
   The report on Mass Layoffs in February 2004 is scheduled to be released
on Wednesday, March 24, 2004.
   
  -----------------------------------------------------------
 |   NOTE:  Due to budget constraints in the Mass Layoff     |
 | Statistics (MLS) program, beginning with data for the     |
 | first quarter of 2004, the scope of quarterly extended    |
 | mass layoffs and plant closings, regularly reported in    |
 | the release, Extended Mass Layoffs in (Quarter), has been |
 | redefined to cover only the private nonfarm economy.      |
 | Quarterly information on layoff events in agriculture     |
 | and government will no longer be collected.  However,     |
 | the monthly reporting of the MLS program in the release,  |
 | Mass Layoffs in (Month), which is based only on admini-   |
 | strative data, will be unaffected and will continue to    |
 | cover the total economy.                                  |
  -----------------------------------------------------------
   
 
 
 
 
                                   - 4 -                                           

Technical Note
 
 
 
 The Mass Layoff Statistics (MLS) program is a federal-state program that
uses a standardized, automated approach to identifying, describing, and
tracking the effects of major job cutbacks, using data from each state's
unemployment insurance database.  Each month, states report on establish-
ments which have at least 50 initial claims filed against them during a 
consecutive 5-week period.  These establishments then are contacted by the 
state agency to determine whether these separations lasted 31 days or long-
er, and, if so, other information concerning the layoff is collected.  States 
report on layoffs lasting more than 1 month on a quarterly basis.
 
 A given month contains an aggregation of the weekly unemployment insurance 
claims filings for the Sunday through Saturday weeks in that month.  All 
weeks are included for the particular month, except if the first day of the 
month falls on Saturday.  In this case, the week is included in the prior 
month's tabulations.  This means that some months will contain 4 weeks and 
others 5 weeks, and the number of weeks in a given month may be different 
from year to year.  Therefore, analysis of over-the-month and over-the-year 
change should take this calendar effect into consideration.
 
 The MLS program resumed operations in April 1995 after it had been ter-
minated in November 1992 due to lack of funding.  Prior to April 1995,
monthly layoff statistics were not available.
 
 Information in this release will be made available to sensory impaired indi-
viduals upon request.  Voice phone: 202-691-5200;  TDD message referral phone 
number:  1-800-877-8339.
 
Definitions
 
 Initial claimant.  A person who files any notice of unemployment to initiate 
a request either for a determination of entitlement to and eligibility for 
compensation, or for a subsequent period of unemployment within a benefit 
year or period of eligibility.
 
 Mass layoff event.  Fifty or more initial claims for unemployment insurance 
benefits filed against an establishment during a 5-week period, regardless of 
duration.


 
 

Table 1. Mass layoff events and initial claimants for unemployment insurance, January 2002 to January 2004

             Date                                                                  Private nonfarm
                                 
                                 Total mass layoffs                             Extended mass layoffs        Realization
                                                           Mass layoffs       lasting more than 30 days        rates(1)
                            
                                           Initial                 Initial                  Initial                  Initial
                                 Events   claimants      Events   claimants      Events    claimants     Events     claimants
                                                                                                                    
             2002           

January ....................     2,146     263,777       2,028     252,245
February ...................     1,382     138,808       1,253     129,849
March ......................     1,460     161,316       1,335     151,305

First Quarter ..............     4,988     563,901       4,616     533,399       1,611      292,998       34.9         54.9

April ......................     1,506     165,814       1,378     153,216
May ........................     1,723     179,799       1,571     166,801
June .......................     1,584     162,189       1,266     136,424

Second Quarter .............     4,813     507,802       4,215     456,441       1,624      299,598       38.5         65.6

July .......................     2,042     245,294       1,819     226,892
August .....................     1,248     128,103       1,151     119,874
September ..................     1,062     124,522         957     114,736

Third Quarter ..............     4,352     497,919       3,927     461,502       1,186      254,955       30.2         55.2

October ....................     1,497     171,100       1,270     149,327
November ...................     2,153     240,171       1,860     216,237
December ...................     2,474     264,158       2,324     252,807

Fourth Quarter .............     6,124     675,429       5,454     618,371       1,916      370,592       35.1         59.9

             2003           

January ....................     2,315     225,430       2,130     210,918
February ...................     1,363     124,965       1,222     116,264
March ......................     1,207     113,026       1,099     104,468

First Quarter ..............     4,885     463,421       4,451     431,650       1,502      297,524       33.7         68.9

April ......................     1,581     161,412       1,470     152,937
May ........................     1,703     174,204       1,538     160,729
June .......................     1,691     157,552       1,336     127,743

Second Quarter .............     4,975     493,168       4,344     441,409       1,799      346,549       41.4         78.5

July .......................     2,087     226,435       1,815     206,901
August .....................     1,258     133,839       1,163     124,131
September ..................       868      82,647         756      73,914

Third Quarter ..............     4,213     442,921       3,734     404,946       1,190      225,609       31.9         55.7

October ....................     1,523     158,240       1,265     137,706
November ...................     1,438     138,543       1,234     123,524
December (p) ...............     1,929     192,633       1,793     182,750

Fourth Quarter (p) .........     4,890     489,416       4,292     443,980    (2)1,592   (2)229,014       37.1         51.6

             2004           

January (p) ................     2,428     239,454       2,226     220,687


    1 The event realization rate is the percentage of all private nonfarm mass layoff events lasting more than
30 days.  The initial claimant realization rate is the percentage of all private nonfarm mass layoff initial
claimants associated with layoffs lasting more than 30 days. 
    2 These quarterly numbers are provisional and will be revised as more data on these layoffs become
available.  Experience suggests that the number of extended mass layoff events is generally revised upwards by
less than 10 percent and the number of initial claimants associated with such events increases by 25-40 percent.
    p = preliminary. 




Table 2. Industry distribution: Mass layoff events and initial claimants for unemployment insurance
                                                 
                                                                                                    Initial claimants for          
                                                             Mass layoff events                     unemployment insurance         
                     Industry                    

                                                   January  November December  January    January    November   December    January
                                                     2003     2003     2003p    2004p       2003       2003       2003p      2004p 


      Total(1) ..................................    2,315    1,438    1,929    2,428      225,430    138,543    192,633    239,454

Total, private ..................................    2,228    1,380    1,846    2,339      217,441    133,818    185,928    228,578

  Agriculture, forestry, fishing and hunting ....       98      146       53      113        6,523     10,294      3,178      7,891

 Total, private nonfarm .........................    2,130    1,234    1,793    2,226      210,918    123,524    182,750    220,687
  Mining ........................................       20        8       21       17        1,697        568      1,937      1,329
  Utilities .....................................       10        4        3        3          745        308        160        345
  Construction ..................................      264      263      335      324       18,862     20,999     25,684     23,405
  Manufacturing .................................      822      408      648      848       90,244     48,419     77,915     89,551
      Food ......................................       91       70       89      108        8,253      8,410      9,285     11,083
      Beverage and tobacco products .............       11        9        5        9          755        938        781        834
      Textile mills .............................       42       13       31       48        7,611      1,178      4,299      6,376
      Textile product mills .....................       18        8       14       19        1,890        483      2,102      1,933
      Apparel ...................................       53       14       32       44        6,085      1,269      3,232      5,836
      Leather and allied products ...............        5    ( 2 )        7       11          294      ( 2 )        842      1,195
      Wood products .............................       56       29       55       46        6,702      3,852      5,000      5,651
      Paper .....................................       19       12       12       20        2,510        856        934      1,847
      Printing and related support activities ...       21        8        7       24        1,803        570        627      2,147
      Petroleum and coal products ...............        5    ( 2 )       10        5          339      ( 2 )        863        362

      Chemicals .................................       14       10        9       23        1,202        908        735      2,384
      Plastics and rubber products ..............       34       27       40       50        3,599      2,085      3,579      4,821
      Nonmetallic mineral products ..............       35       21       49       42        3,201      2,089      4,079      3,813
      Primary metals ............................       48       22       33       44        5,846      2,470      3,421      4,579
      Fabricated metal products .................       58       31       39       72        5,664      2,696      4,045      6,960
      Machinery .................................       52       28       24       39        5,962      4,642      3,629      3,017
      Computer and electronic products ..........       81       19       19       44        7,377      1,468      1,408      3,561
      Electrical equipment and appliances .......       30       12       20       23        2,920      2,671      4,726      2,263
      Transportation equipment ..................       86       51      122      114       12,126      9,696     21,061     15,107
      Furniture and related products ............       36       10       14       36        4,003        856      1,607      3,541
      Miscellaneous manufacturing ...............       27        8       17       27        2,102        891      1,660      2,241

  Wholesale trade ...............................       43       23       27       27        3,307      2,421      2,443      2,391
  Retail trade ..................................      209       76       98      188       21,592      6,877      9,203     22,145
  Transportation and warehousing ................      147       42      131      128       16,422      4,127     15,528     14,038
  Information ...................................       69       37       40       67        6,034      5,918      3,839      9,394
  Finance and insurance .........................       46       19       27       41        3,854      1,485      1,764      3,547
  Real estate and rental and leasing ............        7        8        4       15          408        432        562      1,202
  Professional and technical services ...........       45       33       57       47        6,346      3,175      6,095      4,288
  Management of companies and enterprises .......    ( 2 )    ( 2 )        3        3        ( 2 )      ( 2 )        296        895
  Administrative and waste services .............      274      163      200      285       26,885     13,925     17,256     27,855
  Educational services ..........................    ( 2 )    ( 2 )        6        8        ( 2 )      ( 2 )        327        553
  Health care and social assistance .............       26       28       27       35        1,811      2,243      2,075      2,991
  Arts, entertainment, and recreation ...........       29       26       20       41        2,060      1,920      1,795      3,149
  Accommodation and food services ...............       87       75      131      113        7,102      7,348     14,701      9,614
  Other services, except public administration ..       27       15       12       26        3,097      1,081        955      2,992

  Unclassified ..................................        2        2        3       10          172      1,646        215      1,003

Government ......................................       87       58       83       89        7,989      4,725      6,705     10,876
  Federal .......................................       19        9       13       26        2,303        820      1,419      2,725
  State .........................................       28       22       10       13        2,630      1,917        830      1,405
  Local .........................................       40       27       60       50        3,056      1,988      4,456      6,746


    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. 




Table 3. Mass layoff events and initial claimants for unemployment insurance by census region and division
                           
                                                                                      Initial claimants for            
                                          Mass layoff events                          unemployment insurance           
 Census region and division

                              January   November    December   January      January    November     December    January
                               2003       2003       2003p      2004p        2003        2003        2003p       2004p 

      United States(1) ....    2,315      1,438      1,929      2,428       225,430     138,543     192,633     239,454

Northeast .................      475        210        350        498        44,396      21,478      34,437      50,650

  New England .............       68         29         66         64         6,928       2,282       6,904       5,689
  Middle Atlantic .........      407        181        284        434        37,468      19,196      27,533      44,961

South .....................      554        265        335        501        61,487      27,438      32,467      53,115

  South Atlantic ..........      288        135        192        244        32,616      13,822      17,903      25,490
  East South Central ......      167         35         59        153        19,318       4,212       6,510      17,176
  West South Central ......       99         95         84        104         9,553       9,404       8,054      10,449

Midwest ...................      523        426        780        688        52,162      46,298      87,806      68,404

  East North Central ......      401        313        596        574        41,608      31,687      64,802      58,674
  West North Central ......      122        113        184        114        10,554      14,611      23,004       9,730

West ......................      763        537        464        741        67,385      43,329      37,923      67,285

  Mountain ................       73         51         63         63         6,151       4,606       7,025       6,292
  Pacific .................      690        486        401        678        61,234      38,723      30,898      60,993


    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         

                            January    November     December    January      January    November     December    January
                             2003        2003        2003p       2004p        2003        2003        2003p       2004p 

   Total(1) .............    2,315       1,438       1,929       2,428       225,430     138,543     192,633     239,454

Alabama .................      119          10          27         112        14,789       1,384       3,728      13,754
Alaska ..................        7           6           3           6           471         561         213         429
Arizona .................       14           4           8           7         1,292         257         551         645
Arkansas ................        8           3           6       ( 2 )           699         777         656       ( 2 )
California ..............      579         420         346         576        48,913      32,200      25,953      51,395
Colorado ................       16           7          11          11         1,540         549       1,107       1,043
Connecticut .............       16           4          13           7         1,508         312       1,166         669
Delaware ................    ( 2 )       ( 2 )       ( 2 )       ( 2 )         ( 2 )       ( 2 )       ( 2 )       ( 2 )
District of Columbia ....        4       ( 2 )           4       ( 2 )           350       ( 2 )         287       ( 2 )
Florida .................       83          55          63          60         5,767       3,533       4,826       4,044
Georgia .................       89          18          31          92        12,406       1,771       3,354      10,525
Hawaii ..................        8       ( 2 )           6           4           773       ( 2 )         506         296
Idaho ...................       19          11          12          16         1,478       1,408       1,647       1,125

Illinois ................       88          57         123          88         8,794       5,785      15,006       9,610
Indiana .................       34          42         108          58         3,011       4,269      15,330       5,499
Iowa ....................       34          29          46          29         3,083       3,464       5,305       2,267
Kansas ..................       15           6          29          14         1,108         696       3,518         954
Kentucky ................       20          14           9          10         2,512       1,649         995       1,030
Louisiana ...............       19          23          15          14         1,240       1,773         991         908
Maine ...................        8           4           5          14         1,201         306         424       1,463
Maryland ................        8           9          15          19           592         843       1,119       2,009
Massachusetts ...........       33          17          24          30         3,162       1,373       2,568       2,375
Michigan ................       22          48         135         171         1,982       5,058      12,275      16,615
Minnesota ...............       33          44          51          30         3,026       3,849       6,342       2,688
Mississippi .............        4           3           8           6           228         165         450         384
Missouri ................       30          22          45          26         2,351       5,651       6,180       2,422

Montana .................        3           5           7           4           204         428         918         270
Nebraska ................        7           7          10          11           539         412       1,411         984
Nevada ..................       15          14          20          14         1,276       1,156       2,351       2,225
New Hampshire ...........        5       ( 2 )       ( 2 )       ( 2 )           623       ( 2 )       ( 2 )       ( 2 )
New Jersey ..............       49          43          76          73         4,372       5,985       6,895       7,191
New Mexico ..............        5           4           3           6           309         212         278         328
New York ................      188          59          88         194        18,806       5,648       9,448      24,376
North Carolina ..........       26          23          23          18         3,215       3,635       1,857       1,829
North Dakota ............    ( 2 )           4       ( 2 )       ( 2 )         ( 2 )         474       ( 2 )       ( 2 )
Ohio ....................      151          75         117         141        16,689       6,464      10,693      15,169
Oklahoma ................       15           3          12          13         2,225         406       1,278       1,517
Oregon ..................       66          26          26          70         7,672       3,058       2,498       6,681
Pennsylvania ............      170          79         120         167        14,290       7,563      11,190      13,394

Rhode Island ............        4       ( 2 )          12           5           310       ( 2 )       1,775         332
South Carolina ..........       50           7          17          26         5,954         547       2,713       3,563
South Dakota ............    ( 2 )       ( 2 )       ( 2 )       ( 2 )         ( 2 )       ( 2 )       ( 2 )       ( 2 )
Tennessee ...............       24           8          15          25         1,789       1,014       1,337       2,008
Texas ...................       57          66          51          74         5,389       6,448       5,129       7,571
Utah ....................    ( 2 )           6       ( 2 )           5         ( 2 )         596       ( 2 )         656
Vermont .................    ( 2 )       ( 2 )          10           5         ( 2 )       ( 2 )         794         573
Virginia ................       24          16          34          24         3,266       2,644       3,372       3,061
Washington ..............       30          32          20          22         3,405       2,751       1,728       2,192
West Virginia ...........        3           5           3       ( 2 )           174         556         176       ( 2 )
Wisconsin ...............      106          91         113         116        11,132      10,111      11,498      11,781
Wyoming .................        -           -           -           -             -           -           -           -

Puerto Rico .............       14           -           6           5         1,371           -         486         511


    1 See footnote 1, table 2.
    2 Data do not meet BLS or state agency disclosure standards. 
    p = preliminary.
    NOTE: Dash represents zero.