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Economy in Brief

Challenger Layoff Count Rose Further
by Tom Moeller December 7, 2004

Job cut announcements reported in November rose 2.6% from October and 5.1% from a year ago according to Challenger, Gray & Christmas. The monthly tally of 104,530 pulled the three month moving average of job cut announcements to 104,744 (-9.7% y/y), the highest this year.

During the last ten years there has been an 86% (inverse) correlation between the three month moving average of announced job cuts and the three month change payroll employment.

Job cut announcements differ from layoffs. Many are achieved through attrition, early retirement or just never occur.

Job cut announcements in the automotive industry more than doubled and rose 10 fold in E-Commerce & Dot com to the highest level since January 2003. Government layoffs also surged and layoffs rose in insurance, electronics, services, telecommunication, transportation and energy.

Challenger, Gray & Christmas Nov Oct Y/Y 2003 2002 2001
Announced Job Cuts 104,530 101,840 5.1% 1,236,426 1,431,052 1,956,876
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