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Mass Layoff Statistics - Technical Notes

The Mass Layoff Statistics (MLS) program is a federal-state program that uses a standardized automated approach to identifying, describing, and tracking the effects of major job cutbacks, using data from each state's unemployment insurance database. Each month, states report on employers which have at least 50 initial claims filed against them during a consecutive 5-week period. These employers then are contacted by the state agency to determine whether these separations lasted 31 days or longer, and, if so, other information concerning the layoff is collected. States report on layoffs lasting more than 1 month on a quarterly basis.

A given month contains an aggregation of the weekly unemployment insurance claims filings for the Sunday through Saturday weeks in that month. All weeks are included for the particular month, except if the first day of the month falls on Saturday. In this case, the week is included in the prior month's tabulations. This means that some months will contain 4 weeks and others, 5 weeks. The number of weeks in a given month may be different from year to year, and the number of weeks in a year may vary. Therefore, analysis of over-the-month and over-the-year change in not seasonally adjusted series should take this calendar effect into consideration.

The MLS program resumed operations in April 1995 after it had been terminated in November 1992 due to lack of funding. Prior to April 1995, monthly layoff statistics were not available.

Definitions

Employer
A firm covered by state unemployment insurance laws. Information on employers is obtained from the Quarterly Census of Employment and Wages (QCEW) program, which is administered by the Bureau of Labor Statistics (BLS).
Extended mass layoff event
A layoff defined by the filing of 50 or more initial claims for unemployment insurance benefits from an employer during a 5-week period, with at least 50 workers separated for more than 30 days. Such layoffs involve both persons subject to recall and those who are terminated.
Industry
Employers are classified according to the 2007 version of the North American Industry Classification System (NAICS). For temporary help and professional employers organization industries, monthly MLS-related statistics generally reflect layoffs related to underlying client companies in other industries. An individual layoff action at a client company can be small, but when initial claimants associated with many such layoffs are assigned to a temporary help or professional employer organization firm, a mass layoff event may trigger.
Initial claimant
A person who files any notice of unemployment to initiate a request either for a determination of entitlement to and eligibility for compensation, or for a subsequent period of unemployment within a benefit year or period of eligibility.
Mass layoff event
Fifty or more initial claims for unemployment insurance benefits filed against an employer during a 5-week period, regardless of duration.
Separations
The number of individuals separated from their jobs for at least 31 days. These individuals have become displaced during an extended mass layoff event, as stated by their employer, regardless of whether they file for unemployment insurance or not.

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