Global| May 07 2015Challenger Job Cut and New Hiring Announcements Increase
by:Tom Moeller
|in:Economy in Brief
Summary
Job market churning increased last month; job cuts surged along with hiring. The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during April increased 61,582 (52.8% y/y) following a sharp drop [...]
Job market churning increased last month; job cuts surged along with hiring. The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during April increased 61,582 (52.8% y/y) following a sharp drop 36,594 in March. The latest was the highest level since May 2012. Layoffs increased m/m in the aerospace/defense, automotive, chemical, computer, consumer products, education, energy, entertainment/leisure, government, health care and real estate industries. Layoffs fell m/m in the apparel, electronics, financial, food, industrial goods, insurance, legal, media, pharmaceutical, retail, services, telecommunications, transportation and utility 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 picked up last month to 13,898 (24.7% y/y) from 6,412 in March. Job creation rose in the computer, construction, consumer products, education, entertainment/leisure, health care, legal, media, retail, services and telecommunications industries. Hiring fell in the aerospace/defense, automotive, chemical, energy, financial, industrial goods, pharmaceutical industries.
The Challenger figures are available in Haver's SURVEYS database.
|
Challenger, Gray & Christmas |
Apr | Mar | Feb | Y/Y % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
|
Announced Job Cuts |
61,582 | 36,594 | 50,579 | 52.8 | 483,171 | 509,051 | 523,362 |
|
Announced Hiring Plans |
13,898 | 6,412 | 14,574 | 24.7 | 821,506 | 764,206 | 630,447 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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