BLS DAILY REPORT, THURSDAY, NOVEMBER 21, 1996 In its first monthly release of such estimates, BLS reports there were 498 mass layoff actions by employers involving 40,964 workers who filed for state unemployment insurance benefits during September. That brought the total number of mass layoffs to 2,870 for the third quarter, which was somewhat larger than in the third quarter of 1995 ....California showed the biggest improvement, with a decline in the number of initial UI claims related to mass layoffs in September 1996 compared with a year ago. BLS attributes the improvement to fewer layoffs in motion pictures and business services. Maryland posted the largest increase in initial UI claims stemming from mass layoffs ....While the data series will be more useful once it has a longer history, analysts say that even now it should provide an early indication of layoffs in relatively large firms ....(Daily Labor Report, pages 1,D-1). Wage data compiled by BNA in the first 46 weeks of 1996 shows median first-year wage increase in newly negotiated agreements equaled 3 percent ....(Daily Labor Report, page D-12). Pay for performance isn't just for top executives any more. For the hourly and professional employees who make up the bulk of the work force, nearly a third of companies have now implemented incentive pay plans tied to measures of individual and group performance, up from about 10 percent of companies a decade ago, according to a 1996 survey by Watson Wyatt & Co., a compensation consulting firm ....(Washington Post, "Trendlines" feature, page D1). You don't have to tell employers that cutting jobs brings stress to the workplace, says the Wall Street Journal (page A2). Now, there's new evidence that companies may pay a price for restructuring besides lower employee morale. According to a new survey by the American Management Association and Cigna Corp., companies that have eliminated jobs since 1990 were more likely to see increases in disability claims ranging from back pain to gastrointestinal disorders than firms that haven't cut jobs. Moreover, job-cutting employers reported the most dramatic increases, as compared with firms that don't cut jobs, for such stress related claims as mental illness, substance abuse, and heart and blood pressure ailments, according to the survey of nearly 300 large and midsize companies ....About 38 percent of employers that cut jobs from 1990 to 1995 saw an increase in psychiatric and substance abuse claims, compared with 29 percent of firms that didn't cut jobs .... Personnel executives say that 26 percent of new hires lack basic skills and 37 percent of current employees need skills enhancement, according to a graph on page 1B of USA Today. Olsten Staffing Services says that 68 percent of companies offer training in basic computer, 61 percent in new technologies, 57 percent in customer service, 56 percent in organizational skills, 47 percent in interpersonal communication, 35 percent in sales/marketing, and 35 percent in written communication. Robert B. Reich's departure as labor secretary is sparking contemplation of career changes within the Labor Department, despite his request that the senior staff remain at the agency. The first of the lot is Timothy M. Barnicle, who recently announced that he is leaving his post as head of the Employment and Training Administration ....(Daily Labor Report, pages 2,A-9). DUE OUT TOMORROW: U.S. Import and Export Price Indexes -- October 1996