In September 2004, employers took 708 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 68,972. Both the number of events and initial claims were lower than a year ago. From January through September 2004, the total number of events, 11,725, and initial claims, 1,187,546, were lower than in January-September 2003 (14,073 and 1,399,510, respectively).
Industry Distribution
The 10 industries reporting the highest number of mass-layoff initial claims accounted for 27,382 initial claims in September, 40 percent of the total. Temporary help services, with 6,789 initial claims, accounted for 10 percent of all initial claims in September.The manufacturing sector had 27 percent of all mass layoff events and 37 percent of all initial claims filed in September. A year ago, manufacturing reported 31 percent of events and 38 percent of initial claims. The number of manufacturing events this month was the lowest for any September since 1997, and the number of initial claims was the lowest for any September since 1998. Within manufacturing, the number of claimants was highest in transportation equipment (7,400, mainly automotive-related), followed by food processing (4,848) and electrical equipment and appliances (3,211).
The administrative and waste services sector accounted for 15 percent of both events and initial claims filed in September, with layoffs mainly in temporary help services. Ten percent of all layoff events and 9 percent of initial claims filed during the month were in retail trade, primarily in general merchandise stores. Accommodation and food services accounted for 9 percent of events and 6 percent of initial claims during the month, mainly in full-service restaurants. Construction also accounted for 9 percent of events and 6 percent of initial claims, mostly among specialty trade contractors. An additional 4 percent of events and 5 percent of initial claims were from the information sector, largely in motion picture and sound recording.
Government establishments accounted for 6 percent of events and initial claims filed during the month, mostly in elementary and secondary schools.
Compared with September 2003, the largest decreases in initial claims were reported in computer and electronic products (-4,078), textile mills (-2,809), professional and technical services (-2,021), and motion picture and sound recording industries (-1,806). The largest over-the-year increases in initial claims were reported in transportation equipment (+2,575) and electrical equipment and appliances (+2,069).
Geographic Distribution
Among the four regions, the highest number of initial claims in September due to mass layoffs was reported in the West, 24,324. Administrative and support services and motion picture and sound recording industries accounted for 35 percent of all initial claims in that region during the month. The South region was next, with 19,467 initial claims, followed by the Midwest, with 16,380, and the Northeast, with 8,801.The number of initial claimants in mass layoffs fell over the year in three of the four regions. The largest decrease was in the West (-10,053), followed by the Northeast (-3,314) and the Midwest (-488). 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 (-8,648), New England (-3,922), and West South Central (-2,773) divisions. The largest over-the-year increases were in the East South Central (+1,499) and South Atlantic (+1,454) divisions.
Among the states, California recorded the highest number of initial claims filed in mass layoff events in September (21,752), mostly in administrative and support services and in motion picture and sound recording industries. Florida reported 6,349 initial claims, followed by Michigan (5,997) and Pennsylvania (3,584). These four states accounted for 57 percent of all layoff events and 55 percent of all initial claims for unemployment insurance.
California reported the largest over-the-year decrease in the number of initial claims (-7,677), followed by Texas (-2,622) and Illinois (-1,943). The largest over-the-year increases occurred in Michigan (+4,136) and Florida (+3,794).
From January to September, California reported 292,850 mass layoff initial claims, 25 percent of the national total. The states with the next largest number of claims over this period were Michigan (79,483), New York (77,502), Ohio (69,128), and Pennsylvania (64,614).
