US: Challenger Job-Cut Report

Thu Nov 05 06:30:00 CST 2015

Actual Previous
Announced Layoffs - Level 50,504 58,877

Layoff announcements fell in October to 50,504 vs September's 58,877 and vs the third-quarter monthly average of 68,586. October's announcements were concentrated in the retail and energy sectors, the latter being hurt of course by low oil prices. Challenger estimates that just a little more than 1/4 of October's announcements were tied to oil prices.

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.