US: Challenger Job-Cut Report

Thu Dec 03 06:30:00 CST 2015

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Announced Layoffs - Level 30,953 50,504

In another indication of labor market strength, Challenger's count of layoff announcements fell nearly 20,000 in November to 30,953 for the lowest reading since September last year. And this is more than 20,000 below the 2015 monthly average of over 52,000. Makers of industrial goods announced the most layoffs in November, nearly 7,500, followed by transportation at nearly 4,500. Energy, where layoffs have been very heavy this year, is third at more than 2,500.

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.