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Economy in Brief

U.S. Challenger Layoffs Back Up
by Tom Moeller October 1, 2008

Job cut announcements rose 7.2% to 95,094 in September reversing half of their August decline, according to the Challenger, Grey & Christmas survey.

The three-month level layoffs also increased to 95,714 and was near the highest level since early 2006.

The rise in layoffs last month was led by a huge 25,221 rise in the computer industry and a 8,288 rise in the apparel industry. Declines in layoffs were registered in the automotive, electronics and in the industrial goods industries. Layoffs also fell in insurance industry and in the telecommunication businesses

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 fell m/m and they were down 2.6% y/y.

Challenger, Gray & Christmas September August Y/Y 2007 2006 2005
Announced Job Cuts 95,094 88,736 32.6% 768,264 839,822 1,072,054
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