In November 2004, employers took 1,399 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 130,423. The number of events was the lowest for any November since 1999 and the number of initial claims was the lowest for any November since 1997. From January through November 2004, the total numbers of events, 14,366, and initial claims, 1,445,887, were lower than in January-November 2003 (17,034 and 1,696,293, respectively).
Industry Distribution
The 10 industries reporting the highest number of mass-layoff initial claims accounted for 39,291 initial claims in November, 30 percent of the total. Temporary help services, with 8,873 initial claims, and highway, street, and bridge construction, with 8,566 initial claims, together accounted for 13 percent of all initial claims in November.The manufacturing sector had 29 percent of all mass layoff events and 34 percent of all initial claims filed in November. These were about the same proportions as a year earlier. Within manufacturing, the number of claimants was highest in food processing (7,717, mainly in fruits and vegetables), followed by transportation equipment (6,961) and machinery (4,583).
Construction accounted for 17 percent of events and 14 percent of initial claims filed in November, with layoffs mainly in highway, street, and bridge construction. Thirteen percent of all layoff events and initial claims filed during the month were in the administrative and waste services sector, primarily in temporary help services. Agriculture, forestry, fishing and hunting accounted for 10 percent of events and 7 percent of initial claims, largely among farm labor contractors. Accommodation and food services accounted for 6 percent of events and 7 percent of initial claims, mostly among food service contractors. An additional 5 percent of events and initial claims were from retail trade, mostly from general merchandise stores.
Government establishments accounted for 5 percent of events and 4 percent of initial claims filed in November, mostly in the administration of economic programs.
Compared with November 2003, the largest decreases in initial claims were reported in transportation equipment manufacturing (-2,735), heavy and civil engineering construction (-2,433), and telecommunications (-1,979). The largest over-the-year increase in initial claims was reported in administrative and support services (+3,579).
Geographic Distribution
Among the four Census regions, the highest number of initial claims in November due to mass layoffs was reported in the West, 46,854. Administrative and support services and agriculture and forestry support activities accounted for 27 percent of all mass-layoff initial claims in that region during the month. The Midwest region was the next largest, with 39,650 initial claims, followed by the South, with 24,573, and the Northeast, with 19,346.The number of initial claimants in mass layoffs fell over the year in three of the four regions. The largest decrease was in the Midwest (-6,648), followed by the South (-2,865) and the Northeast (-2,132). The West reported an over-the-year increase in initial claims (+3,525). 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 West North Central (-4,947) and South Atlantic (-3,489) divisions. The largest over-the-year increases were in the Mountain (+1,864) and Pacific (+1,661) divisions.
Among the states, California recorded the highest number of initial claims filed in mass layoff events in November (34,089), mostly in administrative and support services and agriculture and forestry support activities. Wisconsin was next highest with 9,144 initial claims reported, followed by Pennsylvania (7,600) and Illinois (6,462). These four states accounted for 47 percent of all layoff events and 44 percent of all initial claims for unemployment insurance.
Missouri reported the largest over-the-year decrease in the number of initial claims (-2,878), followed by Iowa (-2,305) and Ohio (-2,245). The largest over-the-year increase occurred in California (+1,889).
From January to November 2004, California reported 361,835 mass layoff initial claims, 25 percent of the national total. The states with the next largest number of claims over this period were Michigan (88,283), New York (87,127), Ohio (81,540), and Pennsylvania (79,875).
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