US: Challenger Job-Cut Report

Thu Apr 05 06:30:00 CDT 2018

Actual Previous
Announced Layoffs - Level 60,357 35,369

Layoff announcements surged in March, to 60,357 from 35,369 in February for the highest total in nearly two years. Retail, increasingly affected by movement away from brick-and-mortar and toward e-commerce, is once again to blame with layoffs in the sector totaling 35,042 followed in the distance by telecommunications at 4,056. Though these results probably won't lower forecasts for tomorrow's employment report, they definitely point to weakness for retail payrolls.

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.