In recent years, many companies realized the advantages of outsourcing targeted or specific job functions within their organizations. The outsourcing includes eliminating jobs and moving the corresponding work to another company. The other company can be located in the United States or can be a located outside the United States. If the work is moved outside the United States, it is considered ÃÂoffshoringÃÂ. The Bureau of Labor Statistics Mass Layoff Statistics (MLS) program tracks the mass layoff data collected from State agencies when an organization with 50 or more employees files at least 50 initial claims for unemployment insurance (Brown and Siegel, 2005). The MLS program tracks the major job cutbacks and the reasons for the job eliminations, and the data is used to identify the movement of jobs, reasons for the movement, and the impact on the unemployment rate.
The unemployment rate will never be zero. Workers can be unemployed for numerous reasons such as voluntarily resignation, personal decision to not work, job termination due to performance or attendance, or layoffs due to organizational restructures.
When a company of 50 or more employees elects to eliminate jobs for any reason, it must provide the rational to the appropriate State agency. This information is then collected by the Bureau of Labor Statistics and the data is used to determine the reasons for the job eliminations affecting the unemployment rates. Other information is collected such as whether work was moved within or out of the country, what types of jobs were affected, movement of work by industry, gender and age of the affected workers, and geographic location of the company.
The Bureau of Labor Statistics provides the specifics of the data collection program, maintains quality assurance, reviews the data, and publishes monthly and quarterly news releases. Analysts within each...