Department of Labor and Regulation

Title - Labor Market Information Center

Mass Layoff Statistics

The Mass Layoffs Statistics (MLS) program, which the U.S. Bureau of Labor Statistics (BLS) administers, uses a standardized approach to identify, describe and track the effects of major job cutbacks using data from state unemployment insurance databases.

The national threshold to be considered a mass layoff is 50 initial claims for unemployment insurance benefits. State agencies contact establishments that have at least 50 initial claims for unemployment insurance (UI) filed against them during a consecutive five-week period to determine whether those separations have a duration of at least 31 days. If so, it is considered a mass layoff event and information is gathered on the total number of workers separated, the reasons for those separations and recall expectations.

The Labor Market Information Center (LMIC) of the South Dakota Department of Labor and Regulation (DLR) works in cooperation with the BLS to conduct the MLS program for South Dakota. The table below compares the number of initial claimants and the number of mass layoff events for all South Dakota industries from 2000-2011.

South Dakota
Mass Layoff Statistics
All Industries
  Initial
Claimants
Layoff
Events
2000
801 8
2001
1,515 18
2002
1,241 12
2003
1,363 15
2004
897 10
2005
1,117 13
2006
752 7
2007
1,001 11
2008
966 10
2009
2,099 25
2010
531 7
2011 531 6

The corresponding graph of the initial claimants and layoff events show spikes during 2001 and 2009, which were related to recessionary periods.

Line graph showing SD MLS data for 2000 to 2010

Due to the methodology of the MLS program and the definition of a layoff event, a South Dakota layoff event will not trigger for an employer with fewer than 50 employees, or for an employer for which fewer than 50 initial unemployment insurance claims are filed within a five-week period. Therefore, the MLS program does not capture layoff data for smaller employers. South Dakota MLS data is also available on the U.S. Bureau of Labor Statistics website.

Please Note: Mass Layoffs Data Being Discontinued

On March 1, 2013, President Obama ordered across-the-board spending cuts (commonly referred to as sequestration) required by the Balanced Budget and Emergency Deficit Control Act, as amended. Accordingly, the U.S. Bureau of Labor Statistics (BLS) must cut its current budget by more than $30 million, 5 percent of the current 2013 appropriation, by September 30, 2013. As a result, the BLS will eliminate the Mass Layoff Statistics program, which has made possible the collection and publication of layoff data on our website. The final release of Mass Layoffs Statistics data will occur on June 21, with publication of the May 2013 data.

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Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184