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Economy in Brief

Challenger Layoffs Surged
by Tom Moeller May 1, 2008

According to the Challenger, Grey & Christmas survey, job cut announcements in April surged to 90,015 from 53,579 in March. The three month average of announcements drifted to its highest level since November 2006.

The three month average of job cut announcements in services, consumer goods, and government sectors led the upward drift.

During the last ten years there has been a 76% (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.

Challenger also reported that announced hiring plans rose sharply m/m but that the three month average was little changed.

Challenger, Gray & Christmas April March Y/Y 2007 2006 2005
Announced Job Cuts 90,015 53,579 27.4% 768,264 839,822 1,072,054
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