June Job Cuts Rise To 41,432

The number of planned job cuts announced by U.S.-based employers increased by 4,297 or 11.6 percent to 41,432 in June.  Despite the increase, the overall pace of downsizing through the first half of 2011 is at the lowest level since 2000, according the latest report on downsizing activity released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The June increase is the second in as many months.  Announced layoffs in May were up 2.0 percent to 37,135, after falling to a four-month low of 36,490 in April.

The two consecutive months of increased job cuts did little to impact the overall slow pace of downsizing.  For the quarter ending on June 30, a total of 115,057 job cuts were announced, down 12 percent from 130,749 in the first quarter and 1.2 percent lower than the second quarter in 2010 (116,494).

Employers have now announced 245,806 planned job cuts this year, 17.4 percent lower than the 297,677 cuts announced in the first half of 2010.  The six month total is the lowest since 2000, when 223,421 job cuts were tracked between January and June.

“The employment picture remains a bit cloudy.  Continued slowness in the pace of job cuts is certainly promising.  However, hiring is coming in spurts and is not quite robust enough to make a significant dent in unemployment,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“We saw relatively strong payroll gains in February, March and April, only to see much slower growth in May.  The next three or four months of employment and hiring data will be important indicators of whether the expansion has prematurely hit the brakes or if the dips in job creation are simply bumps on the road to recovery,” he added.

The weakest link in the economy right now is the government sector.  It continues to see the heaviest downsizing, with employers in the sector announcing 77,591 job cuts so far this year, including an industry-leading 10,176 in June.  If there is any silver lining, it is that the six month total is down 22 percent from the 99,676 government job cuts announced by this point a year ago.

The second-ranked retail sector has also seen job cuts fall from a year ago.  The 23,027 job cuts announced by these employers through June are 12 percent lower than the 26,181 job cuts in the first six months of 2010.

Unfortunately, while the government and retail sectors have seen job cuts decline from a year ago, the other three industries rounding out the top five job-cutting sectors of 2011 to date have all seen notable increases in announced layoffs.  The biggest surge was felt in the aerospace and defense industry, which has experienced a 241 percent increase in job cuts, from 6,121 in 2010 to 20,851 this year.

Firms in the financial services sector have increased downsizing by 18.5 percent to 11,734, after announcing 9,901 in the first six months of 2010.  Job cuts in the industrial goods sector are up 28 percent from a year ago.

“These are significant increases, but the job-cut totals are still low enough to prevent alarm bells from sounding.  However, the fact that job cuts are rising in these particular industries is notable, since aerospace, financial services and industrial goods are all bellwether industries when it comes to the overall health of the economy,” said Challenger.

“As for the remainder of the year, we don’t see much indication of a second-half surge in job-cut activity.  The hiring picture is a little cloudier.  While the government attempts to enact policies that will spur job creation, it really comes down to consumer and business demand for products and services and, right now, that demand remains relatively weak,” said Challenger.

Any progress made on the hiring front will appear anemic due to the fact that we started in such a deep hole.  To provide some perspective, the 16-month long recession that stretched from July 1981 to November 1982 resulted in 2.7 million job losses from the nation’s payrolls.  It took about 11 months for employment to return to pre-recession levels.

Following the relatively short 2001 recession, which also saw 2.7 million jobs losses, it took nearly 40 months for payrolls to return to pre-recession levels.  In the Great Recession of 2008-2009, more than 8.7 million jobs were lost.  It has been nearly 24 months since the end of the recession and employment levels are still about seven million jobs shy of the pre-recession peak.

“So, while we expect that employers will continue to steadily add jobs in the second half of 2011, at times it will appear that employment is standing still,” Challenger concluded.

Full report: http://www.challengergray.com/press/press.aspx

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT
REPORT

 

TOP FIVE INDUSTRIES

Year To Date

 

2011

2010

 

Government/Non-Profit

77,591

99,676

 

Retail

23,027

26,181

 

Aerospace/Defense

20,857

6,121

 

 

Financial

11,734

9,901

 

Industrial Goods

10,735

8,364

 

MONTH BY MONTH TOTALS

2011

2010

January

38,519

71,482

February

50,702

42,090

March

41,528

67,611

April

36,490

38,326

May

37,135

38,810

June

41,432

39,358

July

 

41,676

August

 

34,768

September

 

37,151

October

 

37,986

November

 

48,711

December

 

32,004

TOTAL

245,806

529,973

Some reductions are
identified by employers as workers who will take early retirement offers or
other special considerations to leave the company.

LAYOFF LOCATION

Year to Date

 

California

 

35,114

 

Dist. of Columbia

15,771

 

New
Jersey

13,182

 

Florida

13,066

 

Texas

 

12,165

Listings are identified by
the location of the layoff or corporate headquarters as stated in
announcement.

 

 

 

Copyright 2011
Challenger, Gray & Christmas, Inc.



CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY
INDUSTRY

 

JUNE

Year-To-Date

Government/Non-Profit

10,176

77,591

Health Care/Products

3,729

10,027

Food

3,500

9,187

Aerospace/Defense

3,287

20,857

Entertainment/Leisure

2,651

9,432

Industrial Goods

2,075

10,735

Automotive

1,924

6,544

Services

1,692

7,749

Transportation

1,561

6,645

Retail

1,415

23,027

Media

1,298

4,085

Consumer Products

1,291

9,290

Pharmaceutical

1,082

4,771

Electronics

1,048

4,317

Construction

1,037

4,996

Computer

877

3,178

Energy

870

3,270

Utility

600

2,638

Insurance

511

2,580

Telecommunications

480

6,813

Financial

321

11,734

Real Estate

7

1,244

Apparel

1,276

Chemical

1,311

Legal

2,509

TOTAL

41,432

245,806

 

 

Copyright 2011 Challenger, Gray & Christmas, Inc.



CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

 

JOB CUTS BY
REGION, STATE

 

EAST

JUNE

YTD

Pennsylvania

2,864

7,326

New
York

2,831

9,446

Maryland

2,266

7,724

New
Jersey

1,932

13,182

New
Hampshire

1,550

1,909

Massachusetts

916

5,646

Delaware

570

1,650

Rhode
Island

462

765

Maine

443

1,208

Dist.
of Columbia

385

15,771

Connecticut

 

1,196

Vermont

 

6

TOTAL

14,219

65,829

 

 

MIDWEST

JUNE

YTD

Iowa

2,883

5,827

Ohio

1,807

6,131

Illinois

1,067

10,792

Indiana

878

3,712

Michigan

787

12,105

Kansas

430

1,315

Missouri

356

5,561

Minnesota

277

7,877

Wisconsin

150

2,589

Nebraska

75

280

TOTAL

8,710

56,189

 

 

 

 

Copyright 2011 Challenger, Gray & Christmas, Inc.



 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

 

JOB CUTS BY
REGION, STATE

 

West
/Southwest

JUNE

YTD

California

3,090

35,114

Texas

2,945

12,165

Oregon

1,392

3,363

Washington

991

5,106

Nevada

442

4,478

Arizona

358

1,284

Colorado

311

4,801

Montana

150

204

Hawaii

139

516

Idaho

139

952

North
Dakota

136

286

Oklahoma

125

461

New
Mexico

70

580

Utah

8

242

Alaska

 

500

Wyoming

 

0

South
Dakota

 

430

TOTAL

10,296

70,482

 

 

South

JUNE

YTD

Florida

2,345

13,066

Virginia

1,310

6,992

Georgia

1,055

3,075

Tennessee

1,012

5,351

Alabama

725

5,216

Arkansas

553

1,003

Kentucky

355

2,799

N.
Carolina

352

7,555

Louisiana

305

6,201

S.
Carolina

105

985

Mississippi

90

495

West
Virginia

 

568

TOTAL

8,207

53,306

 

Copyright 2011 Challenger, Gray & Christmas, Inc.



CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUT
REASONS

 

JUNE

YTD

Restructuring

15,174

51,559

Cost-Cutting

9,991

68,220

Closing

7,467

52,180

Merger/Acquisition

1,425

7,891

Economic Conditions

1,279

16,060

Relocation

1,199

2,431

Demand Downturn

1,198

12,274

Loss of Contract

1,086

4,642

Voluntary Severance

827

10,402

Outsourcing

555

2,380

Legal Trouble

334

1,340

Rising Costs

300

300

Order Cancellation/Reduction

278

1,335

Flooding

150

150

Technological Update

104

151

Government Regulation

65

2,446

Bankruptcy

8,745

Competition

150

Funding Loss

2,992

Reorganization/Consolidation

158

TOTAL

41,432

245,806

 

 

 

 

 

 

 

 

Copyright 2011 Challenger, Gray & Christmas, Inc.



 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

QUARTER-BY-QUARTER

 

Q1

Q2

Q3

Q4

TOTAL

1989

9,850

10,100

24,085

67,250

111,285

1990

107,052

87,686

49,104

72,205

316,047

1991

110,056

76,622

147,507

221,107

555,292

1992*

110,815

85,486

151,849

151,850

500,000

1993

170,615

84,263

194,486

165,822

615,186

1994

192,572

107,421

117,706

98,370

516,069

1995

97,716

114,583

89,718

137,865

439,882

1996

168,695

101,818

91,784

114,850

477,147

1997

134,257

51,309

95,930

152,854

434,350

1998

139,140

131,303

161,013

246,339

677,795

1999

210,521

173,027

173,181

118,403

675,132

2000

141,853

81,568

168,875

221,664

613,960

2001

406,806

370,556

594,326

585,188

1,956,876

2002

478,905

292,393

269,090

426,435

1,466,823

2003

355,795

274,737

241,548

364,346

1,236,426

2004

262,840

209,895

251,585

315,415

1,039,735

2005

287,134

251,140

245,378

288,402

1,072,054

2006

255,878

180,580

202,771

200,593

839,822

2007

195,986

197,513

194,095

180,670

768,264

2008

200,656

275,292

287,142

460,903

1,223,993

2009

578,510

318,165

240,233

 151,122

1,288,030

2010

181,183

116,494

113,595

118,701

529,973

2011

130,749

115,057

245,806

AVG

214,243

163,205

190,067

229,527

 

 

*Estimate based on half-year
total. Challenger began tracking job-cut data in 1993.  Before that, it was tabulated by an
independent newsletter no longer published.

 

 

Copyright 2011 Challenger, Gray & Christmas, Inc.



CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT
ANNOUNCEMENT REPORT

 

 

ANNOUNCED HIRING PLANS

MONTHLY TOTALS

 

 

2011

2010

January

29,492

31,381

February

72,581

8,300

March

10,869

13,994

April

59,648

15,654

May

10,248

14,922

June

       15,498

11,732

July

 

8,151

August

 

14,075

September

 

123,076

October

 

124,766

November

 

26,012

December

 

10,575

TOTAL

198,336

402,638

 

 

Copyright 2011 Challenger, Gray & Christmas, Inc.



CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT
ANNOUNCEMENT REPORT

 

 

ANNOUNCED HIRING PLANS

 

Industry

JUNE

YTD

Electronics

2,900

5,392

Computer

2,318

14,561

Health Care/Products

1,823

3,710

Telecommunications

1,500

5,810

Retail

1,392

76,494

Industrial Goods

1,288

4,261

Financial

1,011

4,531

Automotive

890

12,631

Entertainment/Leisure

800

51,300

Services

344

3,209

Pharmaceutical

330

2,710

Transportation

236

3,184

Aerospace/Defense

235

2,178

Consumer Products

155

2,764

Legal

110

294

Food

100

1,060

Government/Non-Profit

66

1,686

Apparel

 

68

Chemical

 

120

Commodities

 

0

Construction

 

485

Energy

 

1,188

Insurance

 

430

Media

 

270

TOTAL

15,498

198,336

 

Copyright 2011 Challenger, Gray & Christmas, Inc.

 

 

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s