Global| Jun 02 2010Challenger Layoffs Near Lowest in Ten Years
by:Tom Moeller
|in:Economy in Brief
Summary
According to the outplacement firm of Challenger, Grey & Christmas the level of layoffs rose slightly m/m during May to 38,810. Nevertheless, the figure was off by roughly two-thirds from last year and just slightly above the lowest [...]
According to the outplacement firm of Challenger, Grey & Christmas the level of layoffs rose slightly m/m during May to 38,810. Nevertheless, the figure was off by roughly two-thirds from last year and just slightly above the lowest level since 2000. Planned layoffs announced during the first five months of 2010 totaled 258,319, down 68.6% from the 822,282 announced during early-2009. In virtually all industries except entertainment/leisure and pharmaceutical layoffs were down last month versus May 2009.
Challenger also samples firms' hiring plans. During May plans fell slightly after a strong gain during April. Versus May '09 plans rose 83.7% but during the first five months of this year they've fallen slightly y/y. Plans eased during May in the transportation, health care & financial sectors but strengthened in the auto, energy, industrial goods & services industries.
During the last ten years there has been a 67% (inverse) correlation between the three-month moving average of announced job cuts and the three-month change in payroll employment. Job cut announcements differ from layoffs. Many are achieved through attrition, early retirement or just never occur.
The Challenger figures are available in Haver's SURVEYS database.
| Challenger, Gray & Christmas | May | April | March | Y/Y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Announced Job Cuts | 38,810 | 38,326 | 67,611 | -65.1% | 1,288,030 | 1,223,993 | 768,264 |
| Announced Hiring Plans | 14,922 | 15,654 | 13,994 | 83.7% | 272,573 | 118,600 | 365,583 |
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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