Global| May 05 2016Challenger Job Cut Announcements Increase
by:Tom Moeller
|in:Economy in Brief
Summary
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during April rose to 65,141 (5.8% y/y) following the prior month's unrevised decline to 48,207. Layoffs increased in the aerospace/defense, [...]
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during April rose to 65,141 (5.8% y/y) following the prior month's unrevised decline to 48,207. Layoffs increased in the aerospace/defense, automotive, chemical, commodities, computer, construction, energy, financial, government/nonprofit, industrial goods and pharmaceutical industries. Layoffs declined in the apparel, consumer products, education, electronics, entertainment/leisure, food, health care, insurance, legal, media, real estate, 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 increased 11,557 (-16.8% y/y) after rising 10,997 in March. It rose in the automotive, construction, consumer products, electronics, government/nonprofit, health care, industrial goods, transportation and utility industries. Hiring fell in the chemical, computer, entertainment/leisure, food, insurance, media, pharmaceutical, retail, services, telecommunications industries.
The Challenger figures are available in Haver's SURVEYS database.
|
Challenger, Gray & Christmas |
Apr | Mar | Feb | Apr Y/Y % | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
|
Announced Job Cuts |
65,141 | 48,207 | 61,599 | 5.8 | 598,510 | 483,171 | 509,051 |
|
Announced Hiring Plans |
11,557 | 10,997 | 7,539 | -16.8 | 690,751 | 821,506 | 764,206 |
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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