Global| Feb 06 2014Challenger Job Cut Announcements Increase While Hiring Plans Deteriorate
by:Tom Moeller
|in:Economy in Brief
Summary
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements increased to 45,017 (11.6% y/y) during January and reversed the prior month's decline. Layoffs increased m/m the retail, financial, [...]
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements increased to 45,017 (11.6% y/y) during January and reversed the prior month's decline. Layoffs increased m/m the retail, financial, transportation, health care, entertainment/leisure, electronics, commodities, computer and telecommunications industries. These were offset by declines in the chemical, aerospace/defense, industrial goods, media, food and energy industries.
During the last ten years there has been a 62% correlation between the level of job cut announcements and the m/m change in payroll unemployment.
Challenger also samples firms' hiring plans. They fell to a low 6,312 (-89.6% y/y) due to pullbacks in the computer, health care, energy, food industries. These were offset by gains in the education, automotive, retail, pharmaceutical, insurance and industrial goods industries.
The Challenger figures are available in Haver's SURVEYS database.
Comparing U.S. and Euro Area Unemployment Rates from the Federal Reserve Bank of New York can be found here.
| Challenger, Gray & Christmas | Jan | Dec | Nov | Y/Y% | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Announced Job Cuts | 45,017 | 30,623 | 45,314 | 11.6 | 509,051 | 523,362 | 606,082 |
| Announced Hiring Plans | 6,312 | 11,362 | 14,177 | -89.6 | 764,206 | 630,447 | 537,572 |
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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