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April announced job cuts jump

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April announced job cuts jump

However, 2014 pace lowest in 7 years.

Job cut announcements by U.S.-based firms were up 17% in April, as employers in retail and financial services continued to shed workers in a challenging business environment.

Employers announced plans to shed 40,298 workers from their payrolls in April, according to the monthly report released Thursday by global outplacement firm Challenger, Gray & Christmas. That was up from 34,399 in March and 6.0% higher than the 38,121 job cuts recorded in the same month a year ago.

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We just saw the lowest first-quarter total in 19 years and the year-to-date monthly average of 40,410 is the lowest since 1997.”

So far in 2014, 161,639 announced job cuts have been identified, 12% fewer than the 183,162 planned layoffs in the first four months of 2013.

“Despite the April increase, the pace of downsizing remains relatively low. We just saw the lowest first-quarter total in 19 years and the year-to-date monthly average of 40,410 is the lowest since 1997,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“However, while the economy still has a lot of room for growth, it is unlikely that monthly layoffs will experience a precipitous decline. Even during the economic boom of the late 1990s, employers still averaged about 550,000 announced layoffs annually.”

One area that has continued to struggle in the wake of the recession is retail, which announced an industry-leading 6,993 job cuts in April. To date, retailers have announced 25,224 job cuts, which is only slightly lower than the 31,297 retail job cuts reported in the first four months of 2013.

 

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