US: Challenger Job-Cut Report

Thu May 31 06:30:00 CDT 2018

Actual Previous
Announced Layoffs - Level 31,517 36,081

Pointing to strength for Friday's employment report, layoff announcements were especially low in May, at 31,517 vs 36,081 in April for the lowest total since October last year. Layoffs in retail remain the highest, at 4,946 to lead all industries for a fifth straight month.

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.