Recent Updates

  • Canada Regional: Employment Insurance by Province (Aug)
  • Canada: Employment Insurance (Aug)
  • US: Philadelphia FRB Mfg Business Outlook Survey (Oct)
  • South Africa: Wholesale & Motor Trade sales, Mining Production and Sales, Building Plans Passed & Buildings Completed (Aug); Angola: CPI (Sep); Egypt: Suez Canal (Sep-Prelim); Morocco: Public Finance (Sep); Turkey: IIP (Aug); Algeria: PPI, IP (Q2)
  • Portugal: Trade in Services (Aug)
  • Malaysia: House Price Index (Q2); China: Central Bank Balance
  • more updates...

Economy in Brief

Challenger Layoffs Off Sharply
by Tom Moeller January 4, 2007

For December, announced job cuts reported by Challenger, Grey & Christmas fell a sharp 28.8% to 54,643. The three month moving average of layoff announcements also fell to 66,864, its lowest level since August.

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.

Layoffs fell sharply m/m in the automotive (+77.0% y/y) and apparel (+1.4% y/y) and services (-57.0% y/y) industries.

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

Challenger also reported that announced hiring plans fell sharply m/m (-84.4% y/y).

Challenger, Gray & Christmas December November Y/Y 2006 2005 2004
Announced Job Cuts 54,643 76,773 -49.3% 839,822 1,072,054 1,039,935
large image