US: Challenger Job-Cut Report

Thu Oct 06 06:30:00 CDT 2016

Actual Previous
Announced Layoffs - Level 44,324 32,188

Layoff announcements rose 44,324 in September, up from August's very low 32,188. Education is at the top of September's layoff list, at 8,671 and reflecting the bankruptcy of ITT Technical Institute which had 130 campuses spread across the country. Retail is second on September's list at 7,296 followed by government at 7,156. Today's results are a negative indication for tomorrow's employment report though trends are still favorable, with total layoffs in the third quarter coming in at 121,858, down from 132,834 and 180,920 in the prior two quarters.

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.