US: Challenger Job-Cut Report

Thu May 03 06:30:00 CDT 2018

Actual Previous
Announced Layoffs - Level 36,081 60,357

Layoff announcements did swell in March but fell back in April, to 36,081 vs 60,357 and in line with 36,602 in April last year. Retail is the difference with layoffs in the sector falling to 7,844 from March's giant 35,042. Health-care layoffs were next heaviest in April at 4,959. Today's data do hint at an expected bounce back in tomorrow's payroll numbers for April.

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.