| Actual | Previous | |
|---|---|---|
| Level | 23,697 | 40,709 |
Highlights
The Challenger layoff report shows announced job cut plans down 41.8 percent in July to 23,697 from 40,709 in June, and down 8.2 percent compared to 25,810 in July 2022. The July level is the lowest since 20,485 in August 2022. While the number of job cut intentions are far higher for 2023 to date at 481,906 compared to 159,021 in 2022 for January to July, it appears that the pace of layoffs is fading and remains largely confined to narrow sectors.
In July, the largest number of layoffs is in technology with 4,738 announced intentions, or 20.0 percent of the total. Technology layoffs continue to dominate with 146,254 in 2023 to date, or 30.4 percent of all layoffs in the January to July period. Nonetheless, the number of layoffs in technology are far lower than the peak of 102,943 in January.
It is not entirely clear what is driving layoffs in July. The majority of reasons cited are 9,055 in the"no reason" category, or 38.2 percent of the total. The next largest is 4,306 in closing, or 18.2 percent of the total, followed by 3,179 in market/economic conditions, or 13.4 percent of the total. It may be that there are fewer persons being laid off and most of these are unfilled positions that are being eliminated.
Hiring intentions are down 6.3 percent in July to 12,774 after 13,620 in June, and down 49.9 percent from 25,506 in July 2022. The largest number of hiring intentions are in aerospace/defense at 3,165 in July, or 24.8 percent of the total. The next largest is 2,752 in healthcare, or 21.5 percent of the total.
In July, the largest number of layoffs is in technology with 4,738 announced intentions, or 20.0 percent of the total. Technology layoffs continue to dominate with 146,254 in 2023 to date, or 30.4 percent of all layoffs in the January to July period. Nonetheless, the number of layoffs in technology are far lower than the peak of 102,943 in January.
It is not entirely clear what is driving layoffs in July. The majority of reasons cited are 9,055 in the"no reason" category, or 38.2 percent of the total. The next largest is 4,306 in closing, or 18.2 percent of the total, followed by 3,179 in market/economic conditions, or 13.4 percent of the total. It may be that there are fewer persons being laid off and most of these are unfilled positions that are being eliminated.
Hiring intentions are down 6.3 percent in July to 12,774 after 13,620 in June, and down 49.9 percent from 25,506 in July 2022. The largest number of hiring intentions are in aerospace/defense at 3,165 in July, or 24.8 percent of the total. The next largest is 2,752 in healthcare, or 21.5 percent of the total.
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.
