Global| Dec 03 2015Challenger Job Cut Announcements Decline Sharply
by:Tom Moeller
|in:Economy in Brief
Summary
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during November fell to 30,953 (-13.9% y/y) following the prior month's decline to 50,504. The latest level was nearly the lowest of the [...]
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during November fell to 30,953 (-13.9% y/y) following the prior month's decline to 50,504. The latest level was nearly the lowest of the economic recovery. Layoffs fell in the energy, food, chemical, construction, consumer products, electronics, financial, health care, insurance, legal, pharmaceutical, retail and telecommunications industries. Layoffs rose in aerospace/defense, automotive, computer, education, entertainment/leisure, government, industrial goods, media, services, 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 fell sharply last month to 10,026 after the 86,107 rise in October. The aerospace/defense, computer, construction, consumer products, entertainment/leisure, financial, health care, pharmaceutical, retail, services, and transportation industries reduced hiring. Hiring increased in the auto, electronics, energy, food, industrial goods, insurance industries.
The Challenger figures are available in Haver's SURVEYS database.
|
Challenger, Gray & Christmas |
Nov | Oct | Sep | Y/Y % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
|
Announced Job Cuts |
30,953 | 50,504 | 58,877 | -13.9 | 483,171 | 509,051 | 523,362 |
|
Announced Hiring Plans |
10,026 | 86,107 | 492,306 | -11.2 | 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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