Layoff announcements jump 69% in January
By Rex Nutting, MarketWatch
Last update: 7:30 a.m. EST Feb. 4, 2008
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WASHINGTON (MarketWatch) -- A fresh surge in financial-sector layoffs contributed to a 69% increase in corporate job-cut announcements in January, according to the latest tally compiled by outplacement firm Challenger Gray & Christmas released Monday.
U.S. corporations announced 74,986 job reductions last month, up from December's 44,416 and 19% higher compared with the previous January, Challenger Gray reported.
The financial sector cut 15,789 positions, accounting for more than a fifth of the documented job cuts for January.
Job cuts remain below levels seen in the 2001 recession, noted John Challenger, CEO of the firm that bears his name.
"If the economy dips into a full-blown recession, it will likely be caused by a drop in consumer spending and the effects of the high price of energy," Challenger said in a release. "In that case, we would expect to see job cutting in areas such as retail, consumer products, and transportation."
The Challenger Gray report is hardly comprehensive: It covers only a tiny fraction of those who lose their jobs each month.
In November, 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, 2.1 million people quit their jobs voluntarily in November.
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, 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.
Last update: 7:30 a.m. EST Feb. 4, 2008
PrintPrint EmailE-mail Subscribe to RSSRSS DisableDisable Live Quotes
WASHINGTON (MarketWatch) -- A fresh surge in financial-sector layoffs contributed to a 69% increase in corporate job-cut announcements in January, according to the latest tally compiled by outplacement firm Challenger Gray & Christmas released Monday.
U.S. corporations announced 74,986 job reductions last month, up from December's 44,416 and 19% higher compared with the previous January, Challenger Gray reported.
The financial sector cut 15,789 positions, accounting for more than a fifth of the documented job cuts for January.
Job cuts remain below levels seen in the 2001 recession, noted John Challenger, CEO of the firm that bears his name.
"If the economy dips into a full-blown recession, it will likely be caused by a drop in consumer spending and the effects of the high price of energy," Challenger said in a release. "In that case, we would expect to see job cutting in areas such as retail, consumer products, and transportation."
The Challenger Gray report is hardly comprehensive: It covers only a tiny fraction of those who lose their jobs each month.
In November, 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, 2.1 million people quit their jobs voluntarily in November.
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, 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.
Labels: Challenger Job-Cut Report, layoffs
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