July mass layoffs highest since July 2001, but span longer period

In July 2004, U.S. employers took 2,094 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. Both the number of events and initial claims were higher than a year ago and higher than any July since 2001. However, July 2004 contained five weeks for possible layoffs, compared with four weeks in July for each of the previous four years.

Each action in July 2004 involved at least 50 persons from a single establishment, and the number of workers involved totaled 253,929. From January through July 2004, there were 10,208 mass layoff events and 1,049,541 initial claims, lower than in January through July 2003 (11,947 and 1,183,024, respectively.

The manufacturing sector had 42 percent of all mass layoff events and 57 percent of all initial claims filed in July. A year ago, manufacturing reported 45 percent of events and 60 percent of initial claims. Within manufacturing, the number of claimants was highest in transportation equipment (72,492, mainly automotive-related), followed by plastics and rubber products manufacturing (13,053), and primary metals (8,177).

Compared with July 2003, the largest initial claims were reported in transportation equipment manufacturing (+12,383), administrative and support services (+4,657), motion picture and sound recording (+3,754), and professional and technical services (+3,592). The largest over-the-year decreases in initial claims were reported in electrical equipment and appliance manufacturing (-3,784) and machinery manufacturing (-3,243).

Among the four regions, the highest number of initial claims in July due to mass layoffs was reported in the Midwest, 118,913. Transportation equipment manufacturing accounted for 48 percent of all initial claims in that region during the month. The South region was next with 55,404 initial claims, followed closely by the West, with 52,412, and the Northeast, with 27,200.