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Mass Layoffs in October 2004

From Bureau of Labor Statistics

Mass Layoffs in October 2004

This release has been edited for length. The original can be found at Bureau of Labor Statistics.

In October 2004, employers took 1,241 mass layoff actions, as measured by new filings for unemployment insurance benefits during the month, according to data from the U.S. Department of Labor's Bureau of Labor Statistics. Each action involved at least 50 persons from a single establishment, and the number of workers involved totaled 127,774. Both the number of events and initial claims were the lowest for any October since October 2000. Data for October 2004 were reported by all states and the District of Columbia, except Vermont. From January through October 2004, the total numbers of events, 12,966, and initial claims, 1,315,320, were lower than in January-October 2003 (15,596 and 1,557,750, respectively).

Industry Distribution

The 10 industries reporting the highest number of mass-layoff initial claims accounted for 37,670 initial claims in October, 29 percent of the total. Temporary help services, with 8,113 initial claims, and motion picture and video production, with 5,673 initial claims, together accounted for 11 percent of all initial claims in October.

The manufacturing sector had 30 percent of all mass layoff events and 38 percent of all initial claims filed in October. A year ago, manufacturing comprised 29 percent of events and 34 percent of initial claims. Within manufacturing, the number of claimants was highest in transportation equipment (12,733, mainly automotive-related), followed by food processing (9,049) and machinery (4,224).

The administrative and waste services sector accounted for 15 percent of events and 12 percent of initial claims filed in October, with layoffs mainly in temporary help services. Ten percent of all layoff events and 7 percent of initial claims filed during the month were in construction, primarily among specialty trade contractors. Accommodation and food services accounted for 7 percent of events and initial claims during the month, mainly in hotels and motels, except casino hotels. Retail trade accounted for 8 percent of events and 7 percent of initial claims, mostly in general merchandise stores. An additional 3 percent of events and 6 percent of initial claims were from the information sector, largely in motion picture and sound recording.

Government establishments accounted for 5 percent of events and 4 percent of initial claims filed during the month, mostly in executive, legislative, and general government agencies.

Compared with October 2003, the largest decreases in initial claims were reported in food and beverage stores (-12,161), administrative and support services (-6,147), and agriculture and forestry support activities (-5,450). The largest over-the-year increases in initial claims were reported in accommodation (+3,383) and transportation equipment (+2,463).

Geographic Distribution

Among the four Census regions, the highest number of initial claims in October due to mass layoffs was reported in the West, 44,250. Motion picture and sound recording industries, administrative and support services, and food manufacturing accounted for 32 percent of all mass layoff initial claims in that region during the month. The Midwest region was the next largest, with 35,859 initial claims, followed by the South, with 30,246, and the Northeast, with 17,419.

The number of initial claimants in mass layoffs fell over the year in two of the four regions. The largest decrease was in the West (-24,126), followed by the Midwest (-7,573). The South reported an over-the-year increase of 875 initial claims, followed by the Northeast (+358). Five of the nine geographic divisions had over-the-year decreases in the number of initial claims associated with mass layoffs, with the largest decreases in the Pacific (-23,698) and West North Central (-6,697) divisions. The largest over-the-year increase was in the South Atlantic division (+1,967).

Among the states reporting data this month (Vermont did not provide data), California recorded the highest number of initial claims filed in mass layoff events in October (34,896), mostly in motion picture and sound recording industries and in administrative and support services. Florida reported 9,737 initial claims, followed by Ohio (8,193), Illinois (8,019), and Pennsylvania (7,661). These five states accounted for 55 percent of all layoff events and 54 percent of all initial claims for unemployment insurance.

California reported the largest over-the-year decrease in the number of initial claims (-22,426), followed by Missouri (-3,442) and Iowa (-2,035). The largest over-the-year increase occurred in Florida (+5,129).

From January to October 2004, California reported 327,746 mass layoff initial claims, 25 percent of the national total. The states with the next largest number of claims over this period were Michigan (83,251), New York (82,765), Ohio (77,321), and Pennsylvania (72,275).

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