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Economy in Brief

Challenger Layoffs Up Third Straight Month in November
by Tom Moeller December 7, 2005

Challenger, Grey & Christmas reported that job cut announcements in November rose for the third consecutive month. The 22.1% rise to 99,279 followed a 13.2% rise the prior month and pulled the three month average of job cut announcements up to 84,139 (-19.7% y/y).

During the last ten years there has been an 84% (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.

The aerospace (+251% y/y) and auto (+42% y/y) industries reported notable m/m increases in layoffs as did the financial (22.0% y/y) and the pharmaceutical (1,046% y/y) industries. These increases were somewhat offset by declines in retail (-31.8% y/y) and telecommunications (-71.2% y/y).

Challenger also reported that announced hiring plans rose sharply (413.8% y/y) for the second consecutive month.

Challenger, Gray & Christmas Nov Oct Y/Y 2004 2003 2002
Announced Job Cuts 99,279 81,301 -5.0% 1,039,175 1,236,426 1,431,052
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