| Actual | Previous | |
|---|---|---|
| Level | 77,770 | 102,943 |
Highlights
The Challenger report on layoff intentions in February shows a 24.5 percent decline to 77,770 from 102,943 in January, but up 410.1 percent compared to 1,245 in February 2022. The February report has layoffs in all categories for the first time since January 2013. Challenger said,"cuts occurred in all 29 industries" in 2013; Challenger did not track FinTech until 2019. The largest share of layoff intentions was 21,387 in technology, or 27.5 percent of the total.
It is notable that among the reasons cited for layoff intentions, the largest is 31,931 in market/economic conditions, which is 41.1 percent of the total. The deterioration in perceptions of market and/or economic conditions suggests that businesses are generally preparing for a downturn by eliminating open positions, encouraging voluntary retirement, and/or laying off workers. It is good to keep in mind that layoffs announced may take place at once, in the near term, or over a considerable time. Sometimes the layoffs never take place as circumstances change.
Hiring intentions are down 12.0 percent in February to 28,830 after 32,764 in January, and down 86.6 percent from 215,127 in February 2022. The largest announcement is in technology at 8,410, or 29.2 percent of the total. The next largest are 5,174 in automotive and 4,100 in financial.
It is notable that among the reasons cited for layoff intentions, the largest is 31,931 in market/economic conditions, which is 41.1 percent of the total. The deterioration in perceptions of market and/or economic conditions suggests that businesses are generally preparing for a downturn by eliminating open positions, encouraging voluntary retirement, and/or laying off workers. It is good to keep in mind that layoffs announced may take place at once, in the near term, or over a considerable time. Sometimes the layoffs never take place as circumstances change.
Hiring intentions are down 12.0 percent in February to 28,830 after 32,764 in January, and down 86.6 percent from 215,127 in February 2022. The largest announcement is in technology at 8,410, or 29.2 percent of the total. The next largest are 5,174 in automotive and 4,100 in financial.
Definition
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.
Description
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.
