Global| Jul 01 2009Challenger Layoffs Moderate Further
by:Tom Moeller
|in:Economy in Brief
Summary
For the fifth consecutive month the outplacement firm of Challenger, Grey & Christmas indicated that job cut announcements eased. In fact, the number of layoff announcements of 74,393 was the least since March of last year. This [...]
For the fifth consecutive month the outplacement firm of Challenger, Grey & Christmas indicated that job cut announcements eased. In fact, the number of layoff announcements of 74,393 was the least since March of last year. This cycle's largest layoff total occurred this past January when there were 241,749 cuts. Challenger also reported, however, that announced hiring plans remained near the cycle low.
Announcement of job cuts in the pharmaceutical industry fell even further to 515, the lowest level since early 2007. Announcements in the financial industry also fell as did cuts in the services, apparel and (sharply) in the chemical industries. Job cuts in the computer industry fell to the lowest level since December ad layoffs in the auto industry fell as well.
Picking up some steam were job cut announcements in the chemical and in the transportation industry.
During the last ten years there has been a 67% (inverse) correlation between the three month moving average of announced job cuts and the three month change payroll employment. Job cut announcements differ from layoffs. Many are achieved through attrition, early retirement or just never occur.
The Challenger figures are available in Haver's SURVEYS database.
| Challenger, Gray & Christmas | June | May | Y/Y | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|
| Announced Job Cuts | 74,393 | 111,182 | -9.0% | 1,223,993 | 768,264 | 839,822 |
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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