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Thursday, October 6, 2016

Job Cuts Surged in September

Employers announced plans to cut 44,324 jobs in September, according to a report issued by Challenger Gray & Christmas. September’s cuts were 38% higher than August’s. Employers have announced 435,612 job cuts through the first nine months of 2016, down 12% from a year ago.

“Heavy job cutting in the energy sector defined the first half of the year. But each quarter has seen the number of overall job cuts decline as this sector stabilized and the economy continued to improve,” said John Challenger, CEO of Challenger, Gray & Christmas.

Cuts in the education sector led the increase in September, as announced layoffs increased 363% to 8,671. The computer industry also experienced significant losses once again, announcing 4,152 cuts. Year-to-date, the computer industry has cut 59,719 jobs.

Although cuts in the first three quarters of this year have been lower compared to 2015, the report suggests that we could see a surge in layoffs during final quarter of the year.

“This year could be particularly volatile in the fourth quarter, with employers holding off on significant moves until they see election results,” says Challenger. “It’s not simply who wins the White House, but there are Senate races and countless ballot initiatives on issues like minimum wages that will influence business strategies going forward.”

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

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