Challenger: Rising Layoffs Don’t Spell Economic Doom
For months, the number of planned layoffs have been trending down, and even if they did not always fall below year-ago levels, they were on pace to fall below 2012’s total of 523,362 — which was the lowest level since 1997.
However, job cuts rose to the highest level since February as employers based in the United States announced plans to decrease payrolls by 50,462 jobs, 33.8 percent more than July’s 37,701-job cut, according to a Thursday report from the global outplacement consultancy firm Challenger, Gray & Christmas. Job cuts in August were also 57 percent higher than a year ago when employers announced 32,239 layoffs, and it is the third consecutive month in which job cuts were greater than in the comparable month of 2012.
So far in 2013, employers have announced 347,095 job cuts, just below the 352,185 job cuts announced in the January through August period in 2012. The industrial goods sector took the hardest hit. Manufacturers announced 22,162 job cuts — the largest layoff in the sector since January 2009 when 32,083 job cuts were announced — the largest one-month total for a single industry category in 2013. The cuts also nearly surpassed the 26,10 jobs cuts announced by industrial goods manufacturers in all of 2012.