Economic News Release

Extended Mass Layoffs Associated With Domestic and Overseas Relocations, First Quarter 2004 Summary


Technical information:  (202) 691-6392     USDL 04-1038
http://www.bls.gov/mls/
                                           For release:  10:00 A.M. EDT
Media contact:                691-5902     Thursday, June 10, 2004


              EXTENDED MASS LAYOFFS ASSOCIATED WITH DOMESTIC
               AND OVERSEAS RELOCATIONS, FIRST QUARTER 2004

   
   Questions on job loss related to the movement of work were added to 
the Mass Layoff Statistics program in January 2004 by the Bureau of Labor
Statistics of the U.S. Department of Labor.  Data for the first quarter 
of 2004 are included in the release.  In the future, these data will be
included in the regular quarterly news release on Extended Mass Layoffs.

   Extended mass layoffs and separations associated with the movement of
work, domestically or overseas, reflect job loss at companies employing at
least 50 workers where at least 50 people filed for unemployment insurance
during a five-week period and the layoff lasted more than 30 days.  The
extended mass layoff statistics and movement of work measures, therefore,
do not reflect layoffs of less than 50 at these companies, nor do they
capture layoffs occurring at establishments with less than 50 workers.
(About one-third of all private nonfarm mass layoff events extend for more
than 30 days.)  Similarly, these data do not cover situations in which
firms initiate or transfer work to new locations when there are no layoffs
involved.  (See the Technical Note for additional information.)
   
   Of the 239,361 private sector nonfarm workers who were separated from
their jobs for at least 31 days in the first quarter of 2004, the separa-
tions of 4,633 workers were associated with the movement of work outside 
of the country, according to preliminary data.  Domestic relocation of 
work--both within the company and to other companies--affected 9,985
workers. (See table A.)

   From January to March 2004, job loss associated with the relocation 
of work was reported in 119 layoff events, resulting in the separation of
16,021 workers.  (See table B.)  Events associated with movement of work
accounted for about 14 percent of all layoff events and 9 percent of se-
parations where the reason for the layoff was other than seasonal or vaca-
tion.  Three out of four events (90 out of 119) associated with movement 
of work occurred among establishments within the same company.  In more 
than 7 out of 10 cases, the work activities were reassigned to places else-
where in the U.S.  In the 29 events in which work activities were reassigned 
to another company under contractual arrangements, half of the instances in-
volved relocation of work outside the U.S. and half to companies within the 
U.S.
   
                                  - 2 -

Table A. Extended mass layoff events and separations by selected
employer action, first quarter 2004
----------------------------------------------------------------------
                                    |               |                   
               Action               | Layoff events |   Separations
                                    |               |                   
------------------------------------|---------------|-----------------
                                    |               |
Total, private nonfarm sector.......|     1,204     |     239,361
                                    |               |
  Total, excluding seasonal and     |               |
    vacation events 1/..............|       869     |     182,456
                                    |               |
    Total with movement of work 2/..|       119     |      16,021
                                    |               |
      Overseas relocations..........|        34     |       4,633
        Within company..............|        21     |       2,976
        Different company...........|        13     |       1,657
                                    |               |
      Domestic relocations..........|        79     |       9,985
        Within company..............|        65     |       8,191
        Different company...........|        14     |       1,794
 ---------------------------------------------------------------------                                   
   1  The questions on movement of work were not asked of employers
when the reason for layoff was either seasonal work or vacation period.
   2  Detail does not add to group total due to incomplete information.
     
   Among the 119 events with reported relocation of work, 51 percent were
permanent closures of worksites, which affected 10,019 workers.  In compar-
ison, for the 1,204 total layoff events reported in the first quarter of 
2004, only 17 percent involved permanent closure of worksites.
   
   In establishments that had layoffs related to the movement of work, the
average size of a layoff was 135 workers.  This compares with an average of
199 for all establishments that had extended mass layoffs in the first quar-
ter of 2004.
   
   Sixty-eight percent of the layoff events involving the movement of work
and 65 percent of the laid-off workers were from manufacturing industries
during the first quarter of 2004.  Among all private nonfarm extended lay-
offs, manufacturing accounted for  32 percent of the events and 24 percent 
of the separations.  (See table 1.)
   
   Internal company restructuring (bankruptcy, business ownership change,
financial difficulty, and reorganization) accounted for 70 percent of lay-
off events associated with work relocation and resulted in 11,600 separa-
tions during the first quarter.  (See table 2.)  Most of these were due to 
reorganization within the company.  In contrast, only 25 percent of the mass 
layoff events in the total private nonfarm economy were because of internal 
company restructuring.
   
   The Midwest accounted for the largest proportion of workers in extended
mass layoff events associated with the movement of work (34 percent) in the
first quarter of 2004, followed by the South (31 percent), the West (27 per-
cent), and the Northeast (8 percent).  (See table 3.)  For all extended mass 
layoff events, separations were concentrated in the West (43 percent), fol-
lowed by the Midwest (29 percent), the South (16 percent), and the Northeast 
(12 percent).
   
                                  - 3 -
   
Table B. Extended mass layoff events and separations by movement
of work, first quarter 2004
----------------------------------------------------------------------
                                    |               |
          Type of movement          | Layoff events |   Separations
                                    |               |
------------------------------------|---------------|-----------------
                                    |               |
Total, private nonfarm sector.......|     1,204     |     239,361
                                    |               |
  Total, excluding seasonal         |               |
    and vacation events 1/..........|       869     |     182,456
                                    |               |
    Total with movement of work 1/..|       119     |      16,021
                                    |               |
      Within company 2/.............|        90     |      11,917
        Domestic....................|        65     |       8,191
        Out of country..............|        21     |       2,976
                                    |               |
      Different company 2/..........|        29     |       4,104
        Domestic....................|        14     |       1,794
        Out of country..............|        13     |       1,657
----------------------------------------------------------------------
  1  The questions on movement of work were not asked of employers 
when the reason for layoff was either seasonal work or vacation period.
  2  Detail does not add to group total due to incomplete information.

   

Table of Contents

Last Modified Date: June 10, 2004
Recommend this page using: