Layoff plans fall 8.5% in 2007, Challenger says
By Rex Nutting, MarketWatch
Last update: 7:41 a.m. EST Jan. 3, 2008
WASHINGTON (MarketWatch) -- Big corporations took a breather from cutting jobs in December, with announced layoff plans falling 39% to 44,416, the lowest level of the year, according to the monthly tally released Thursday by outplacement firm Challenger Gray & Christmas.
For all of 2007, announced layoffs fell 8.5% to 768,264, the lowest since the recession year of 2001.
The report comes one day before the Labor Department reports on nonfarm payroll growth for December. Analysts surveyed by MarketWatch expect a modest 58,000 gain. See Economic Calendar.
"The housing slump has failed to translate into widespread job cuts outside of the financial sector," said John Challenger, chief executive of the employment company that bears his name. "We did not even see the typical spike in fourth-quarter job cuts."
The financial sector was battered in 2007, with 153,105 announced cuts, more than three times the previous year's total. In the mortgage sector alone, 86,126 jobs were cut in 2007.
Automakers cut 78,880 jobs in 2007, about half the 158,766 cut in 2006.
December's total of 44,416 was down 18.7% compared with a year earlier.
In December, the retail sector cut the most jobs (7,961), followed by automotive, pharmaceutical and financial.
The Challenger report covers only a tiny fraction of those who lose their jobs each month.
In October for instance, a total of 1.8 million workers were let go, representing about 1.3% of total employment, according to the latest available data from the Labor Department. By comparison, 2.7 million people quit their jobs voluntarily in October.
The layoff announcements as tracked by Challenger could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements, buyouts or workers leaving for other jobs, and they could be offset by hiring in other divisions of a company. End of Story
Rex Nutting is Washington bureau chief of MarketWatch.
Find thousands of Bilingual jobs at LatPro.com.
Last update: 7:41 a.m. EST Jan. 3, 2008
WASHINGTON (MarketWatch) -- Big corporations took a breather from cutting jobs in December, with announced layoff plans falling 39% to 44,416, the lowest level of the year, according to the monthly tally released Thursday by outplacement firm Challenger Gray & Christmas.
For all of 2007, announced layoffs fell 8.5% to 768,264, the lowest since the recession year of 2001.
The report comes one day before the Labor Department reports on nonfarm payroll growth for December. Analysts surveyed by MarketWatch expect a modest 58,000 gain. See Economic Calendar.
"The housing slump has failed to translate into widespread job cuts outside of the financial sector," said John Challenger, chief executive of the employment company that bears his name. "We did not even see the typical spike in fourth-quarter job cuts."
The financial sector was battered in 2007, with 153,105 announced cuts, more than three times the previous year's total. In the mortgage sector alone, 86,126 jobs were cut in 2007.
Automakers cut 78,880 jobs in 2007, about half the 158,766 cut in 2006.
December's total of 44,416 was down 18.7% compared with a year earlier.
In December, the retail sector cut the most jobs (7,961), followed by automotive, pharmaceutical and financial.
The Challenger report covers only a tiny fraction of those who lose their jobs each month.
In October for instance, a total of 1.8 million workers were let go, representing about 1.3% of total employment, according to the latest available data from the Labor Department. By comparison, 2.7 million people quit their jobs voluntarily in October.
The layoff announcements as tracked by Challenger could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements, buyouts or workers leaving for other jobs, and they could be offset by hiring in other divisions of a company. End of Story
Rex Nutting is Washington bureau chief of MarketWatch.
Find thousands of Bilingual jobs at LatPro.com.
Labels: Challenger Job-Cut Report, layoffs
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