The outplacement firm of Challenger, Gray & Christmas reported that job cut announcements during June increased to 44,842 (42.7% y/y) and added to May's unrevised increase of 41,034. Layoffs increased in aerospace/defense, chemicals, commodities, construction, consumer products, entertainment/leisure, insurance and retail. Layoffs declined in apparel, automotive, computer, education, electronics, energy, financial, food, government, health care, industrial goods, legal, media, pharmaceutical, services, telecommunications and transportation.

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 slipped last month to 11,176 (-28.0% y/y) from 12,598 in May. Hiring fell in the automotive, chemical, computer, consumer products, food, retail, services and telecommunications industries. Job creation occurred in the aerospace/defense, apparel, construction, electronics, energy, financial, government/nonprofit, health care, industrial goods and transportation industries.

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