Mass Layoff Statistics

First Quarter 2004 Summary

 

The Mass Layoff Statistics (MLS) program records and tracks layoff events occurring in Colorado through the use of the unemployment insurance program.  A mass layoff event occurs when at least fifty people from a firm file a first-time or initial claim for unemployment insurance during any consecutive five-week period with the workers being separated for more than 30 days. 

 

The first quarter of 2004 followed the usual trend of a drop in MLS events and claims at the start of the year.  Nine layoff events lead to 904 separations from January through March.  This quarter Colorado experienced the lowest number of MLS events and claims since the series began in 2000. 

 

 

The highest number of MLS events this quarter came from the construction and retail trade sectors mainly due to the winter seasonal slowdown in these industries.  The highest number of MLS claims came from the manufacturing sector. 

 

Two-thirds of all layoff events during the first quarter of 2004 were a result of seasonal factors, a percentage almost identical to the previous quarter.  Financial difficulty and discontinued product lines accounted for the remaining layoff events with one organization refusing to provide an explanation for the layoff. 

 

Beginning in January 2004, the Mass Layoff Statistics program began collecting data on movement of work due to mass layoff events associated with domestic and international business relocations.  Colorado did not identify any extended mass layoffs involving movement of work during the first quarter of 2004.  Nationally, 119 extended mass layoffs included movement of work both domestically and internationally involving 16,021 separations.  Domestic relocations accounted for two-thirds of all movement of work-related separations with the remaining third moving internationally. 

 

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                                    |               |                  

               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

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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.

 

 

Nationally, 1,204 mass layoff events left 239,361workers away from their jobs for at least 31 days during the first quarter of 2004.  This quarter was lower than one year ago which experienced 1,502 events and 286,947 separations.  Nearly 40 percent of all mass layoff events expect to recall positions with 83.3 percent of those recalls occurring within the next six months and 87.5 percent expecting to recall at least half of the original workforce.