Number of Mass Layoffs Rose Sharply in January
2,400 Employers Let Go 50 or More
By Kirstin Downey
Washington Post Staff Writer
Thursday, February 26, 2004; Page E02
More than 2,400 employers across the country reported laying off 50 or more workers in January, the third-highest number of so-called mass layoffs since the government became tracking them a decade ago.
Only in December 2000 and December 2002 were the number of large layoffs higher. A total of 239,454 workers lost their jobs in the January layoffs, the Bureau of Labor Statistics reported yesterday, based on unemployment insurance claims filed with state employment agencies. Among them were 17,544 temporary workers.
The total jobs lost in January was the most since November 2002, when 240,171 workers were let go in groups of 50 or more. Manufacturing workers, particularly in transportation, food processing and retail jobs, were hardest hit. The large layoffs also included 10,876 government workers, most at the state and local levels.
January often brings pink slips for workers because many employers staff up for the holidays and lay people off after Christmas. It's also the end of the fiscal year for many employers, making Dec. 31 a convenient last day for terminated workers.
The report, which helps states direct retraining funds to troubled industries, comes as continued job losses have sparked debate in the presidential campaign. President Bush's Democratic opponents cite the administration's poor job-growth performance as a reason he should be unseated. Administration officials counter that the positive stock market performance, the uptick in manufacturing orders and improved consumer confidence should soon translate into employment growth.
The administration tried in late 2002 to cease publication of the mass layoff report, citing its cost. But Congress restored funding after state officials complained.
California, the most populous state, had the most mass layoffs, 576, according to the BLS data. This was followed by 194 in New York, 171 in Michigan and 167 in Pennsylvania. In Virginia, 24 employers laid off 50 or more workers, affecting 3,061 jobs. In Maryland, 19 employers did so, with 2,009 jobs lost. No mass layoffs occurred in the District.
"California has continued to lose jobs in recent months," including food-processing, film production and education jobs lost to budget cuts, said Howard Roth, chief economist for the California Department of Finance. "Our labor market is not showing any signs of improving." |
