Global| Oct 05 2011U.S. Challenger Reports Widespread Increase In Job Cut Announcements
by:Tom Moeller
|in:Economy in Brief
Summary
The outplacement firm of Challenger, Grey & Christmas reported that job cut announcements during September surged following their August dip. The jump to 115,730 left them more-than double last year. The jump in announcements was led [...]
The outplacement firm of Challenger, Grey & Christmas reported that
job cut announcements during September surged following their August dip.
The jump to 115,730 left them more-than double last year. The jump
in announcements was led by the government (military), transportation,
financial, energy, health care and industrial goods industries. During the
last ten years there has been a 67% 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.
Challenger also samples firms' hiring plans which improved moderately and rose to 76,551. That was the highest level since last October. The retail and insurance industries showed the bulk of the gain.
The Challenger figures are available in Haver's SURVEYS database.
| Challenger, Gray & Christmas | Sep | Aug | Jul | Y/Y% | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Announced Job Cuts | 115,730 | 51,114 | 66,414 | 211.5 | 529,973 | 1,288,030 | 1,223,993 |
| Announced Hiring Plans | 76,551 | 15,201 | 10,706 | -37.8 | 402,638 | 272,573 | 118,600 |
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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