US: Challenger Job-Cut Report

Thu Mar 05 06:30:00 CST 2015

Actual Previous
Announced Layoffs - Level 50,579 53,041

Challenger's layoff count has been on the rise so far this year, at 50,579 in February vs 53,041 in January. This compares with a monthly average during the fourth quarter of just below 40,000. The count in February last year was 41,835. The energy sector, as it was in January, was the chief source of layoffs in February followed by retail and industrial goods.

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.