Recent Updates

  • Euro area: Flash Consumer Confidence (Apr)
  • Ireland: Producer & Wholesale Price Indexes (Mar)
  • UK: Capital Issuance (Mar)
  • Spain: Trade in Constant Prices, Trade in Goods (Feb)
  • Germany: Federal Budget, PPI, Monthly Tax Revenue (Mar), Short-term Indicator (Feb), Public Sector Finance (Q4)
  • Colombia: Imports (Feb); Brazil: IPCA-15 (Apr)
  • Turkey: Non-Domestic PPI, House Sales, Central Government and Domestic Debt by Instrument, External Debt by Lender, Domestic
  • more updates...

Economy in Brief

Challenger Layoffs Rose
by Tom Moeller July 6, 2006

Challenger, Grey & Christmas indicated that announced job cuts rose 25.1% last month (67,176) to the highest level since February.

During the last ten years there has been an 83% (inverse) correlation between the three month moving average level of announced job cuts and the three month change payroll employment.

Increases m/m were pronounced in the automotive (-73.2% y/y), health care (+23.2% y/y), retail (-80.8% y/y), pharmaceutical (-27.5% y/y) and industrial goods (+45.9% y/y) industries.

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

Challenger also reported a moderate m/m increase in announced hiring plans (-34.6% y/y).

Challenger, Gray & Christmas June May Y/Y 2005 2004 2003
Announced Job Cuts 67,176 53,716 -39.5% 1,072,054 1,039,935 1,236,426
large image