Mass Layoff Statistics

Fourth Quarter 2003 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 fourth quarter of 2003 showed a rise in the amount of mass layoff events and initial claims from the previous quarter, but a drop from the fourth quarter of 2002. A total of 21 mass layoff events were recorded from October though December of this year, up from 12 events during the third quarter of 2003 and down from 33 events a year prior. The fourth quarter’s mass layoffs included 2,889 initial claims filed for unemployment insurance, up 1,239 or 75.1 percent from one quarter ago and down 2,647 or 47.8 percent from the fourth quarter 2002.

The highest number of MLS claims this quarter came from the Manufacturing sector. However, the highest number of MLS events came from the Construction sector, mainly due to the seasonal slowdown experienced during the winter months. Construction experienced more than twice the number of MLS events than Manufacturing. Other industries affected by mass layoffs included Mining, Retail Trade, Administrative and Waste Services, and Accommodation and Food Services.

Close to two-thirds of all layoff events during the fourth quarter of 2003 were caused by seasonality, with slack work being the second most common reason for layoffs. The event rationales are expected due to the seasonal nature of some Colorado businesses.

Beginning with the fourth quarter of 2003, government layoff events and displaced worker events will no longer be reported due to a change in the operation of the Mass Layoff Statistics Program. This change does affect the series since government layoff events accounted for 41.7 percent of layoff events in the third quarter of 2003 and 12.1 percent of claims in the fourth quarter of 2002.

Nationally 1,956 mass layoff events left 359,085 workers away from their jobs for at least thirty-one days. Layoffs due to seasonal work completion and internal company restructuring each accounted for 22 percent of layoff events across the country.

The fourth quarter of 2003 illustrated the trend of an increase in initial mass layoff claims by persons of Hispanic/Latino origin. Over the past three years, the percentage of Hispanic/Latino MLS claimants has increased during the fourth quarter.

The first three quarters of 2003 remained relatively flat for Hispanic/Latino claimants with a large spike in the fourth quarter. During the fourth quarter of 2003, almost one-third of MLS initial claims were filed by persons of Hispanic/Latino origin, an increase of more than 30 percent from the previous three quarters. A similar trend has occurred over the past three years.