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Economy in Brief

Challenger Layoffs Near Recent High
by Tom Moeller August 4, 2008

Job cut announcements during July recovered their June decline with a 26.4% m/m rise, according to the Challenger, Grey & Christmas survey. The three-month level layoffs rose further, to the 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 rose sharply m/m but they were still down 90.2% y/y.

What Determines An Output Drop after an Energy Price Increase? Household or Firm Energy Share? by Rajeev Dhawan and Karsten Jeske for the Federal Reserve Bank of Atlanta and it is available here.

Challenger, Gray & Christmas July June Y/Y 2007 2006 2005
Announced Job Cuts 103,312 81,755 140.8% 768,264 839,822 1,072,054
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