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Economy in Brief

U.S. Challenger Job Cut Announcements Move Slightly Higher
by Tom Moeller  July 6, 2011

The outplacement firm of Challenger, Grey & Christmas reported that job cut announcements during June again rose slightly. Nevertheless, the 11.6% m/m increase to 41,432 left them still near the cycle low. The uptick in announcements was led by the utility, automotive, construction, entertainment/leisure, food, health care, media, pharmaceutical and services 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 rose slightly to 15,498 but still near the recovery low.

The Challenger figures are available in Haver's SURVEYS database.

Challenger, Gray & Christmas Jun May Apr Y/Y % 2010 2009 2008
Announced Job Cuts 41,432 37,135 36,490 5.3 529,973 1,288,030 1,223,993
Announced Hiring Plans 15,498 10,248 59,648 32.1 402,638 272,573 118,600
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