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Economy in Brief

Challenger Job Cut Announcements Ease
by Tom Moeller  November 5, 2015

The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during October declined to 50,504 (-1.3% y/y) following the prior month's sharp decline to 58,877. Layoffs fell in the aerospace/defense, apparel, automotive, computer, entertainment/leisure, government, industrial goods and media industries. Layoffs increased in the construction, consumer products, education, electronics, energy, financial, food, health care, insurance, legal, pharmaceutical, retail, services, telecommunications and transportation industries.

During the last ten years there has been a 68% correlation between the level of job cut announcements and the m/m change in payroll employment.

Challenger also samples firms' hiring plans. Hiring fell sharply last month to 86,107 after the 492,306 September surge. The retail and transportation industries pulled job growth back sharply following September surges. Reduced hiring plans were also realized in the apparel, automotive, computer, construction, pharmaceutical, food, health care, retail and services industries. Increased hiring occurred the aerospace/defense, construction, consumer products, entertainment & leisure, financial, health care, industrial goods, services and telecommunications industries.

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

Challenger, Gray & Christmas

Oct Sep Aug Y/Y % 2014 2013 2012

Announced Job Cuts

50,504 58,877 41,186 -1.3 483,171 509,051 523,362

Announced Hiring Plans

86,107 492,306 11,778 -41.8 821,506 764,206 630,447
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