Layoff plans of 22% in June, Challenger says
By Rex Nutting, MarketWatch
Last Update: 7:41 AM ET Jul 5, 2007
WASHINGTON (MarketWatch) -- U.S. corporations announced 55,726 layoffs last month, down 22% from May's figure and 17% below the figure from June 2006, according to an unscientific monthly tally compiled by outplacement firm Challenger Grey & Christmas.
The figures released Thursday are not seasonally adjusted. June's traditionally a slow month for job-cutting announcements, Challenger Grey noted.
For the first half of the year, layoff announcements have totaled 393,499, down 10% compared with a year ago.
Of the top five industries, only the financial sector cut more jobs in the first half compared with the same period last year.
"The financial sector is clearly affected by the significant housing slowdown and subsequent collapse in the subprime lending market," said John Challenger, CEO of the employment firm, in statement. Cuts in the financial sector doubled in June to 9,800 compared with May and were up 131% in the first six months of the year to 64,825.
The automotive sector, by contrast, has cut 46% fewer jobs this year than last: 37,246 to 69,334.
In all of 2006, Challenger Gray tallied 839,822 job reductions.
The Challenger Gray report covers only a tiny fraction of those who lose their jobs each month.
In April, for instance, a total of 1.5 million workers were discharged from their jobs
involuntarily, representing about 1.1% of total employment, according to the latest available data from the Labor Department. By comparison, 2.5 million people quit their jobs voluntarily in April.
The layoff announcements as tracked by Challenger Gray could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements or workers leaving for other jobs, and they could be offset by hiring in other divisions of a company.
Rex Nutting is Washington bureau chief of MarketWatch.
Last Update: 7:41 AM ET Jul 5, 2007
WASHINGTON (MarketWatch) -- U.S. corporations announced 55,726 layoffs last month, down 22% from May's figure and 17% below the figure from June 2006, according to an unscientific monthly tally compiled by outplacement firm Challenger Grey & Christmas.
The figures released Thursday are not seasonally adjusted. June's traditionally a slow month for job-cutting announcements, Challenger Grey noted.
For the first half of the year, layoff announcements have totaled 393,499, down 10% compared with a year ago.
Of the top five industries, only the financial sector cut more jobs in the first half compared with the same period last year.
"The financial sector is clearly affected by the significant housing slowdown and subsequent collapse in the subprime lending market," said John Challenger, CEO of the employment firm, in statement. Cuts in the financial sector doubled in June to 9,800 compared with May and were up 131% in the first six months of the year to 64,825.
The automotive sector, by contrast, has cut 46% fewer jobs this year than last: 37,246 to 69,334.
In all of 2006, Challenger Gray tallied 839,822 job reductions.
The Challenger Gray report covers only a tiny fraction of those who lose their jobs each month.
In April, for instance, a total of 1.5 million workers were discharged from their jobs
involuntarily, representing about 1.1% of total employment, according to the latest available data from the Labor Department. By comparison, 2.5 million people quit their jobs voluntarily in April.
The layoff announcements as tracked by Challenger Gray could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements or workers leaving for other jobs, and they could be offset by hiring in other divisions of a company.
Rex Nutting is Washington bureau chief of MarketWatch.
Labels: Challenger Job-Cut Report, Marketwatch
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