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Economy in Brief

Challenger Layoffs Fell in June, Trend Up Strongly
by Tom Moeller July 2, 2008

Job cut announcements fell 21.0% last month and reversed all of their rise during May, according to the Challenger, Grey & Christmas survey. The three-month rise in layoffs surged, however, to its highest level since early 2006.

A rise in the three-month average of job cut announcements in the financial, automotive, transportation and telecommunication sectors led the recent strength.

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 again fell sharply (-63.7% y/y).

The Evolution of World Income Distribution from the Federal Reserve Bank of Philadelphia can be found here.

Challenger, Gray & Christmas June May Y/Y 2007 2006 2005
Announced Job Cuts 81,755 103,522 46.7% 768,264 839,822 1,072,054
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