Global| Jul 01 2010Challenger Layoffs Rose Slightly M/M But Remain 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 during June rose slightly to 39,358. Still, the level was off by roughly one-half from last year and slightly above the lowest level since 2000. [...]
According
to the outplacement firm of Challenger, Grey & Christmas the level of
layoffs during June rose slightly to 39,358. Still, the level was off by roughly
one-half from last year and slightly above the lowest level since 2000. Planned
layoffs announced during the first six months of 2010 totaled 297,677, down
two-thirds from the 896,675 announced during early-2009. In virtually all
industries except computers, entertainment/leisure, pharmaceutical and retail
layoffs were down last month versus June 2009.
Despite the decline in layoffs the unemployment rate from the Census Department remains high as the number of long-term unemployed has surged.
Challenger also samples firms' hiring plans and June plans fell for the second consecutive month. Versus June '09, however, plans fell 43.1% and during the first six months of this year they've fallen 15.8%. Plans eased during June in most sectors but strengthened in the energy, entertainment/leisure and food 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 | June | May | April | Y/Y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Announced Job Cuts | 39,358 | 38,810 | 38,326 | -47.1% | 1,288,030 | 1,223,993 | 768,264 |
| Announced Hiring Plans | 11,721 | 14,922 | 15,654 | -43.1% | 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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