Global| Nov 05 2015Challenger Job Cut Announcements Ease
by:Tom Moeller
|in:Economy in Brief
Summary
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, [...]
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 |
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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