US: Challenger Job-Cut Report

Thu Dec 07 06:30:00 CST 2017

Actual Previous
Announced Layoffs - Level 35,038 29,831

Lay-off announcements rose to 35,038 in November vs 29,831 in October and 26,936 in November last year. This is the highest total in seven months and, though still at an historically low level, does hint at softer-than-expected results for tomorrow's monthly employment report. Health care had the highest total for a second month with services and computer products also showing sizable totals.

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.