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Thursday, July 7, 2016

Job Cuts Slowed in the Second Quarter

Employers announced plans to cut 38,536 jobs in June, according to a report issued by Challenger Gray & Christmas. June’s announced cuts were 28% higher than May’s total, but still well below the 12 month average. The pace of cuts in the second quarter was 27% lower than the first quarter of the year.

“It is not unusual to see a slowdown in job cuts during the summer months,” said John A. Challenger, CEO of Challenger Gray & Christmas. “Other factors are definitely contributing to the decline, the biggest one being the precipitous drop off in job cuts attributed to low oil prices.”

Job cuts in the energy sector fell to 28,310 during the second quarter, down 42% from the first quarter’s total. Cuts in the retail and health care sectors also fell significantly in the second quarter, down 48% and 65% respectively. In contrast, the computer industry increased layoffs during the second quarter. The industry has cut 39,589 jobs through the first half of 2016.

“We may continue to see low job cuts throughout the remainder of 2016, as employers take a wait-and-see stance on workforce levels. Several uncertainties, including national elections, the recent Brexit, and global security and economic issues are giving employers pause when it comes to workforce decisions,” said Challenger.

Read the Challenger Gray & Christmas release.
Visit Banks and the Economy.

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