Challenger: Fewer layoffs in November than a year ago

The monthly Challenger, Gray & Christmas, Inc. Job Cuts report showed a slight decline in job cuts in November from October, but the number of job cuts was down –13% from a year ago. That's good news. This includes government job cuts. Overall, Challenger reports more announced job cuts to-date than in all of last year. These are "announced" cuts, so it is always uncertain when those people may actually lose their jobs or in some cases the cuts can take effect through retirement and attrition.

 

Job cuts at the state and local level have been significant, but appear to be showing. Instead, Challenger now expects increased cutting by the federal government, including the postal service. The U.S. Air Force announced 13,500 job cuts last month. The winding down of the wars in Iraq and Afghanistan will also likely result in further cuts. Federal budget spending cuts will only increase cuts at the federal level. The financial sector could also continue to see job cuts due to the financial turmoil in Europe.

 

Challenger also expects higher retail hiring due to better-than-expected Black Friday and Cyber Monday retail sales.

-- Jack Krupansky