Global| Aug 06 2015Challenger Job Cut Announcements Surge
by:Tom Moeller
|in:Economy in Brief
Summary
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during July jumped to 105,696 (125.4% y/y) and added to June's unrevised increase of 44,842. Layoffs spiked higher in the computer, electronics, [...]
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during July jumped to 105,696 (125.4% y/y) and added to June's unrevised increase of 44,842. Layoffs spiked higher in the computer, electronics, energy and government sectors. Layoffs also increased in construction, consumer products, financial, industrial goods, services and transportation. Layoffs fell sharply in the chemical, aerospace/defense, automotive, entertainment/leisure, food, health care, insurance, legal, pharmaceutical ands retail 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 held fairly steady last month at 11,637 (-29.7% y/y) versus 11,176 in June. Hiring fell in the aerospace/defense, automotive, electronics, energy, financial, government, health care, industrial goods, telecommunications and transportation industries. Increased job creation occurred in the apparel, chemical, computers, construction, consumer products, retail and services industries.
The Challenger figures are available in Haver's SURVEYS database.
|
Challenger, Gray & Christmas |
Jul | Jun | May | Y/Y % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
|
Announced Job Cuts |
105,696 | 44,842 | 41,034 | 125.4 | 483,171 | 509,051 | 523,362 |
|
Announced Hiring Plans |
11,637 | 11,176 | 12,598 | -29.7 | 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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