Global| Nov 03 2016Challenger Survey Layoff Announcements Backpedal
by:Tom Moeller
|in:Economy in Brief
Summary
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during October declined to 30,740 (-39.1% y/y) following September's increase to 44,324. It was the lowest level of job cut announcements since [...]
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during October declined to 30,740 (-39.1% y/y) following September's increase to 44,324. It was the lowest level of job cut announcements since May. Layoffs declined in the apparel, chemical, commodities, construction, education, financial, food, government/nonprofit, media, retail, telecommunications and utility industries. Layoffs increased in the aerospace/defense, automotive, computer, consumer products, electronics, energy, entertainment/leisure, health care, industrial goods, insurance, legal, pharmaceutical, services 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 fell sharply to 135,532 last month (+57.4% y/y) following a surge to 487,075 in September. It fell in the aerospace/defense, automotive, energy, entertainment/leisure, financial, retail and transportation industries. Hiring rose in the computer, consumer products, health care, insurance, media, services telecommunications.
The Challenger figures are available in Haver's SURVEYS database.
|
Challenger, Gray & Christmas |
Oct | Sep | Aug | Oct Y/Y % | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
|
Announced Job Cuts |
30,740 | 44,324 | 32,188 | -39.1 | 598,510 | 483,171 | 509,051 |
|
Announced Hiring Plans |
135,532 | 487,075 | 9,101 | 57.4 | 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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