US: Challenger Job-Cut Report

Thu Sep 03 06:30:00 CDT 2015

Actual Previous
Announced Layoffs - Level 41,186 105,696

Lay-off announcements, at 41,186, were moderate in August and far lower than the 105,696 in July which was skewed higher by a massive Army cutback. August layoffs were led by the retail sector reflecting the bankruptcy of the A&P supermarket chain. Layoff levels in this report have generally been on the low side but are not nearly as striking as actual jobless claims which are extremely low. This report will have no effect on expectations for tomorrow's employment report which is expected to be moderate to soft and in line with trend.

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.