Global| Aug 04 2016Challenger Survey Reports Another Increase in Job Cuts
by:Tom Moeller
|in:Economy in Brief
Summary
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during July rose to 45,346 (-57.1% y/y) following June's increase to 38,536. Layoffs increased in the aerospace/defense, commodities, computer, [...]
The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during July rose to 45,346 (-57.1% y/y) following June's increase to 38,536. Layoffs increased in the aerospace/defense, commodities, computer, electronics, energy, government, industrial goods, real estate, telecommunications & utility 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. Layoffs fell in the automotive, chemical, construction, consumer products, education, entertainment/leisure, financial, food, health care, insurance, media, pharmaceutical, retail, services, and transportation industries.
Challenger also samples firms' hiring plans. Hiring increased to 16,051 last month (37.9% y/y) after falling to 13,564 in June. It rose in the aerospace/defense, automotive, computer, construction, consumer products, education, electronics, entertainment/leisure, financial, food, government & nonprofit, health care, legal and services industries. No industries reported less hiring.
The Challenger figures are available in Haver's SURVEYS database.
|
Challenger, Gray & Christmas |
Jul | Jun | May | Jul Y/Y % | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
|
Announced Job Cuts |
45,346 | 38,536 | 30,157 | -57.1 | 598,510 | 483,171 | 509,051 |
|
Announced Hiring Plans |
16,051 | 13,564 | 24,732 | 37.9 | 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.
More Economy in Brief
