US: Challenger Job-Cut Report

Thu Apr 02 06:30:00 CDT 2015

Actual Previous
Announced Layoffs - Level 36,594 50,579

Challenger's layoff count eased to 36,594 in March, down from 50,000 plus readings in the two prior months. Layoffs in the month were centered in health care and telecommunications. Despite the easing, layoff announcements were heavy in the first quarter, at 140,214 vs 119,763 in the fourth quarter which is the most since first quarter 2013.

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.