MLS Methodology

Mass Layoff Statistics

Establishments that have had 50 or more Initial Unemployment Insurance Claims filed against them are identified as having potential mass layoffs or closures.  Smaller levels of initial UI claims can trigger a potential layoff event if the total number of claims represent at least 75 percent of an establishment’s employment or if there are at least 20 Initial Claims filed against an establishment (the establishment employment number is not published).

Once the employers are identified, the analyst would contact the employers by telephone 31 days after the potential layoff events are triggered. Some of the information the analyst would collect from the employers include finding out what kind of layoff occurred (Permanent, Temporary, or no layoff) and the reason for the layoff or closure of a company. Other important information gathered would include finding out the number of people employed prior to the layoff, the establishment’s open/close status; and finally whether or not there will be any employee recall.

Employers are identified according to industry classification and location, while UI claimants are identified by demographic characteristics such as: age, race, sex, ethnic group, and place of residence.