Mass layoffs, initial benefit claims down; manufacturing's shares lowest since June 1995

In June 2004, employers took 1,379 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 134,588. Both the number of events and initial claims were lower than a year ago. The number of mass layoff events and the number of associated initial claims were at their lowest levels for any June since 1999. From January through June 2004, the total number of events, at 8,114, and of initial claims, at 795,612, were lower than in January through June 2003 (9,860 and 956,589, respectively).

The manufacturing sector had 16 percent of all mass layoff events and 20 percent of all initial claims filed in June—the lowest shares for any June since 1995, when the monthly series began. A year ago, manufacturing reported 23 percent of events and 26 percent of initial claims. Within manufacturing, the number of claimants was highest in transportation equipment (9,303, mainly automotive-related), followed by food processing (2,677) and textile mills (1,957).