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Economy in Brief

Challenger Job Cut Announcements Slip
by Tom Moeller  December 5, 2013

The outplacement firm of Challenger, Gray & Christmas reported that 45,314 job cuts (-20.6% y/y) were announced during November, roughly constant with October. Layoffs rose in the energy, entertainment/leisure, food, industrial goods, retail, services and transportation industries. These were offset by declines in the pharmaceutical, telecommunications, real estate, media, financial and electronics industries.   

During the last ten years there has been a 67% correlation between the three-month moving average of announced job cuts and the three-month change in payroll employment. Job cut announcements differ from layoffs. Many are achieved through attrition, early retirement or just never occur.

Challenger also samples firms' hiring plans. They fell due to sharp pullbacks in the transportation, entertainment/leisure, services, retail, health care, automotive, food and energy industries. These were offset by increases in the computer, electronics, apparel, financial and insurance industries.   

The Challenger figures are available in Haver's SURVEYS database.

Challenger, Gray & Christmas Nov Oct Sep Y/Y% 2012 2011 2010
Announced Job Cuts 45,314 45,730 40,289 -20.6 523,362 606,082 529,973
Announced Hiring Plans 14,177 87,874 444,617 50.3 630,447 537,572 402,638
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