Internet address:  http://stats.bls.gov/newsrels.htm
Technical information:  (202) 606-6396  USDL 98-426


                                        For release: 10:00 A.M. EDT
Media contact:                606-5902  Thursday, October 22, 1998

                                     
                         MASS LAYOFFS IN JULY 1998

     
  In July 1998, there were 1,862 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 235,996.  Both
the number of layoff events and initial claimants for unemployment
insurance were somewhat lower than in July 1997.  (See table 1.)
  
  The monthly series in this release covers 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
establishment and on the demographics of the laid-off workers.  See the
Technical Note for more detailed definitions.
  
  Because the 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.  For
example, 3,641 layoff events involving 424,018 initial claimants for
unemployment insurance occurred in April, May, and June of 1998 combined.
The second-quarter 1998 figures for mass layoffs lasting more than 30 days,
however, were 1,500 events and 260,837 claimants.  Forty-one percent of all
mass layoffs in the April-June period lasted for more than a month. (See
table 1.)  In all quarters for which data are available, the proportion of
mass layoffs that became ?extended? mass layoffs varied from about 29 to 47
percent.

Industry Distribution

  In July 1998, manufacturing industries accounted for 51 percent of all
mass layoff events and 61 percent of the initial claims filed.
Manufacturing industries that had the largest numbers of initial claimants
were transportation equipment (43,996), primarily in motor vehicles and car
bodies and motor vehicle parts and accessories; electronic equipment
(12,702), mostly in semiconductors; and industrial machinery and equipment
(12,258), particularly in lawn and garden equipment.  (See table 3.)  Most
initial claimants associated with layoff events in both transportation
equipment and electronic equipment were involved in strike-related plant
shutdowns.
     
  In nonmanufacturing industries, services accounted for 18 percent of all
mass layoff events and 15 percent of all initial claims filed, and the
layoffs occurred mostly in business services (largely in help supply
services) and in motion pictures (mostly in motion pictures and video
production).  Layoffs in business services (specifically help supply
services) and the motion picture industry are more likely than those in
other industries to last less than 30 days.  Retail trade contributed 6

                                  - 2 -

percent to layoff events and 5 percent to initial claimants during the
month, largely in general merchandise stores.  Layoffs in government
establishments accounted for 6 percent of all layoff events and 5 percent
of all initial claimants, were most prevalent among elementary and
secondary schools, and coincided with the end of the school year.
  
  Compared with July 1997, the largest increases in initial claims
occurred in electronic equipment (6,184), transportation equipment (5,514),
and primary metal industries (4,649).  The largest over-the-year decreases
in initial claims occurred in business services (-5,762), local urban
transit (-5,536), and agricultural crops (-3,722).
  
State Distribution
  
  Among the 50 states and the District of Columbia reporting data for
July, California had the largest number of initial claims filed in mass
layoff events (33,663), primarily in business services, followed closely by
Michigan (33,520), mostly due to strike-related layoffs in transportation
equipment, and Ohio (24,126), largely in transportation equipment.  These
three states accounted for about 38 percent of all layoff events and
initial claims.  (See table 2.)
  
  From July 1997 to July 1998, Wisconsin reported the largest over-the-
year rise in initial claims (5,535), primarily in transportation equipment,
followed by South Carolina (4,774), Michigan (4,432), and Ohio (4,306).
California had the largest over-the-year decline in initial claims
(-25,616), mostly in business services.
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 one month on a
quarterly basis.

     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: 202-606-STAT; TDD
phone:  202-606-5897; TDD message referral phone number: 1-800-326-2577.
     
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, July 1996 to
July 1998
 
                                                    Extended mass layoffs  
                                                  lasting more than 30 days                                          
            Date             Total mass layoffs                                 Event
                                                                             realization   
                             Events     Initial     Events     Initial          rate (1)
                                       claimants              claimants         
                  
            1996

 July .....................  1,534      192,155     
 August ...................    918       83,166     
 September ................    513       42,376     

 Third quarter ............  2,965      317,697      1,020   (r)200,423         34.4     

 October ..................  1,289      131,850     
 November .................  1,433      130,774     
 December .................  1,824      204,123     

 Fourth quarter ...........  4,546      466,747      1,915   (r)384,161         42.1       

              1997              

 January ..................  2,139      212,860     
 February .................    755       63,352     
 March ....................    783       84,069     

 First quarter ............  3,677      360,281      1,317   (r)253,424         35.8     

 April ....................  1,269      152,168     
 May ......................  1,152      101,476     
 June .....................  1,238      121,256      

 Second quarter ...........  3,659      374,900      1,574   (r)319,617         43.0     

 July .....................  1,899      237,410     
 August ...................    973       99,513     
 September ................    548       59,062     

 Third quarter ............  3,420      395,985      1,077   (r)216,474         31.5     

 October ..................  1,414      139,297     
 November .................  1,156      100,051     
 December .................  1,634      172,029     

 Fourth quarter ...........  4,204      411,377      1,677   (r)311,536         39.9     

              1998              

 January ..................  2,360      255,203     
 February .................    970       81,455     
 March ....................    762       78,210     
 
 First quarter(r) .........  4,092      414,868      1,289      237,528         31.5     

 April ....................  1,253      132,476     
 May ......................  1,180      107,952     
 June .....................  1,208      183,590     

 Second quarter ...........  3,641      424,018   (p)1,500   (p)260,837         41.2     

 July .....................  1,862      235,996     

   1 The event realization rate is the percentage of total mass layoff events lasting more than 30 days.                             
   r = revised.
   p = preliminary.              
 Table 2. State distribution: Mass layoff events and initial claimants for unemployment insurance,
 July 1997 and July 1998

                                                                  Initial claimants for
                                       Mass layoff events         unemployment insurance
                                                                  
              State
                                      July          July           July           July

                                      1997          1998           1997           1998


    Total( 1 )..................     1,899         1,862         237,410        235,996     

 Alabama .......................         7             6           1,184          1,147     
 Alaska ........................         -         ( 2 )               -          ( 2 )
 Arizona .......................        14            15           1,138          1,559     
 Arkansas ......................        18            16           2,211          1,775     
 California ....................       593           378          59,279         33,663     
 Colorado ......................     ( 2 )             5           ( 2 )            643     
 Connecticut ...................     ( 2 )             6           ( 2 )            423     
 Delaware ......................     ( 2 )         ( 2 )           ( 2 )          ( 2 )
 District of Columbia ..........     ( 2 )         ( 2 )           ( 2 )          ( 2 )
 Florida .......................        76            55           4,694          4,411     
 Georgia .......................        18            19           1,518          1,901     
 Hawaii ........................         3             3             186            209     
 Idaho .........................         6            13             415          1,596     

 Illinois ......................        51            58           9,031         10,363     
 Indiana .......................        51            56           9,526          7,394     
 Iowa ..........................        17            19           1,829          2,788     
 Kansas ........................         3             5             586            747     
 Kentucky ......................        18            31           1,800          4,200     
 Louisiana .....................        11            19             860          1,965     
 Maine .........................         5            11             357          1,222     
 Maryland ......................        29             5           6,433            397     
 Massachusetts .................        11            25           1,187          2,347     
 Michigan ......................       179           202          29,088         33,520     
 Minnesota .....................        11            13           1,455          1,673     
 Mississippi ...................         8            17             539          2,176     
 Missouri ......................        56            46           9,758          8,784     

 Montana .......................         4             3             463            479     
 Nebraska ......................         -             3               -            577     
 Nevada ........................         7             8             582            649     
 New Hampshire .................         7             8             723            704     
 New Jersey ....................        39            42           3,247          3,508     
 New Mexico ....................         3             4             299            550     
 New York ......................       107            91          16,025         10,393     
 North Carolina ................         8             7             626          1,183     
 North Dakota ..................         -         ( 2 )               -          ( 2 )
 Ohio ..........................        90           120          19,820         24,126     
 Oklahoma ......................         9            12           1,317          1,185     
 Oregon ........................        10            25             948          2,631     
 Pennsylvania ..................       167           165          16,901         18,973     

 Rhode Island ..................         3             4             198            441     
 South Carolina ................        52            79           6,254         11,028     
 South Dakota ..................         -             -               -              -
 Tennessee .....................        22            12           2,721          1,040     
 Texas .........................        49            70           7,513          8,572     
 Utah ..........................         -             5               -            575     
 Vermont .......................         -             -               -              -
 Virginia ......................        39            60           7,534          7,429     
 Washington ....................        16            20           1,004          1,564     
 West Virginia .................     ( 2 )         ( 2 )           ( 2 )          ( 2 )
 Wisconsin .....................        72            95           7,291         12,826     
 Wyoming .......................         -             -               -              -

 Puerto Rico ...................        17            17           1,934          1,516    

    1  Data were reported by all states and the District of Columbia.                                    
    2  Data do not meet BLS or state agency disclosure standards.                                      
    NOTE:  Data for total mass layoff events and initial claimants for unemployment insurance   
have been revised for July 1997 due to the inclusion of new data for Louisiana and Oklahoma.  
Dash represents zero.
     
 
    
 

Table 3. Industry distribution: Mass layoff events and initial claimants for unemployment insurance, 
July 1997 and July 1998

  
                                                                                        Initial claimants for
                                                             Mass layoff events         unemployment insurance
                                                                                       
                         Industry 
                                                              July        July         July           July
                                                              1997        1998         1997           1998 
      
      Total( 1 )..........................................   1,899       1,862       237,410        235,996     

 Total, private ..........................................   1,785       1,742       224,001        223,905     

   Agriculture ...........................................     153          83        11,658          6,787     
   Nonagriculture ........................................   1,550       1,602       198,501        209,676     
     Manufacturing .......................................     767         942       118,019        144,634     
       Durable goods .....................................     414         570        78,665        100,770     
         Lumber and wood products ........................      33          29         4,318          3,115     
         Furniture and fixtures ..........................      28          32         3,888          5,810     
         Stone, clay, and glass products .................      19          11         2,390          1,373     
         Primary metal industries ........................      28          51         2,735          7,384     
         Fabricated metal products .......................      69         105         8,507         11,496     
         Industrial machinery and equipment ..............      47          84         9,982         12,258     
         Electronic and other electrical equipment .......      49          84         6,518         12,702     
         Transportation equipment ........................     118         145        38,482         43,996     
         Instruments and related products ................      10          16           801          1,291     
         Miscellaneous manufacturing industries ..........      13          13         1,044          1,345     
       Nondurable goods ..................................     353         372        39,354         43,864     
         Food and kindred products .......................      72          88         6,469          9,999     
         Tobacco products ................................   ( 2 )       ( 2 )         ( 2 )          ( 2 )
         Textile mill products ...........................      39          54         4,459          6,872     
         Apparel and other textile products ..............      96          95        10,671         10,030     
         Paper and allied products .......................      13          14         1,353          1,376     
         Printing and publishing .........................   ( 2 )       ( 2 )         ( 2 )          ( 2 )
         Chemicals and allied products ...................      11          10         1,241          1,454     
         Rubber and miscellaneous plastics products ......      88          87        11,769         11,391     
         Leather and leather products ....................      21          17         2,507          2,234     

     Nonmanufacturing ....................................     783         660        80,482         65,042     
       Mining ............................................       4          23           334          1,615     
       Construction ......................................      71          51         5,277          4,142     
       Transportation and public utilities ...............     116          85        13,123          8,229     
       Wholesale and retail trade ........................     174         153        16,890         14,999     
          Wholesale trade ................................      30          37         2,396          3,395     
          Retail trade ...................................     144         116        14,494         11,604     
       Finance, insurance, and real estate ...............      19          19         1,601          1,666     
       Services ..........................................     399         329        43,257         34,391     

   Not identified ........................................      82          57        13,842          7,442     
 
 Government ..............................................     114         120        13,409         12,091     
   Federal ...............................................      25          18         3,322          3,126     
   State .................................................      23          28         2,536          2,312     
   Local .................................................      66          74         7,551          6,653     

    1  Data were reported by all states and the District of Columbia.                                   
    2  Data do not meet BLS or state agency disclosure standards.                                       
    NOTE:  Data for total mass layoff events and initial claimants for unemployment insurance 
have been revised for July 1997 due to the inclusion of new data for Louisiana and Oklahoma.  Dash represents zero.