US: Challenger Job-Cut Report

Thu Jan 08 06:30:00 CST 2015

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Announced Layoffs - Level 32,640 35,940

Challenger's count of layoff announcements for December totals 32,640 vs 35,940 in November and 30,623 in December last year. By industry, announcements were heaviest in food followed by automotive, health care and energy. For the full year, announcements totaled 483,171 which, in a solid indication of labor market health, is the lowest total since way back in 1997.

This monthly report counts and categorizes announcements of corporate layoffs based on mass layoff data from state departments of labor. The job-cut report must be analyzed with caution. It doesn't distinguish between layoffs scheduled for the short-term or the long term, or whether job cuts are handled through attrition or actual layoffs. Also, the job-cut report does not include jobs eliminated in small batches over a longer time period. Unlike most economic data, this series is not adjusted for seasonal variation.

The job-cut report is basically a rehash of the weekly jobless claims report but provides additional insight into where layoffs are occurring. There is industry and geographic (states) detail that is not available with weekly jobless claims.