March 2014 Challenger Job Cuts Lowest First Quarter Since 1995

April 3rd, 2014
in econ_news, syndication

from Challenger, Gray & Christmas, Inc.

New figures show employers announced the fewest first-quarter job cuts in 19 years, providing further evidence that the economy continues to gain strength as it enters the sixth year of recovery.

Follow up:

The first quarter closed with 34,399 March job cuts, the second lowest monthly total since January 2013. The only month to see fewer cuts during that period was December, when just 30,623 job cuts were announced. The March total was 18 percent lower than the 41,835 planned job cuts reported in February and 30 percent lower than a year ago when March job cuts totaled 49,255.

Through the first quarter of 2014, employers announced 121,341 job cuts, down 16 percent from the 145,041 cuts tracked during the first three months of 2013. The first-quarter total was virtually unchanged from the previous quarter, when 121,667 job cuts were recorded.

The first quarter total was the lowest quarterly total since Q2 of 2013 (113,891). Even more significant, however, is the fact that it is the lowest Q1 total since 1995, when 97,716 job cuts were announced. Said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

The first quarter typically experiences some of the heaviest job cutting of the year. Since we began tracking planned layoffs in 1989, the first quarter is only slightly lower than the fourth quarter when it comes to the pace of downsizing, with an average job-cut total of just over 205,000. Employers are well below that pace this year, suggesting that layoffs continue to decline in a recovery that is approaching its five-year anniversary.

Call center workers are also being impacted by a series of layoffs announced by wireless carrier Sprint. While Sprint is struggling to keep up with AT&T and Verizon, at least some of the recent cuts appear to be the result of smarter consumers. A company spokesperson told one news outlet that many of the call center reductions reflect customers' growing familiarity with smartphones as well as simplified rate plans which have resulted in fewer customer service calls.

Neither retail nor financial firms saw the heaviest job cuts last month, however. The top job-cutting sector in March was health care, which announced plans to reduce payrolls by 5,768, bringing its year-to-date total to 10,984, which ranks fourth among all industries.

 

Job cuts within the telecommunications industry have risen sharply this year. The 11,277 job cuts announced by these firms, to date, ranks third among all industries and marks a 225 percent increase from the 3,471 telecommunications job cuts recorded in the first three months of 2013.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

TOP FIVE INDUSTRIES

Year To Date

 

2014

2013

Retail

18,231

25,400

Financial

15,306

33,819

Telecommunications

11,277

3,471

Health Care/Products

10,964

11,713

Computer

9,133

3,526

MONTH BY MONTH TOTALS

 

2014

2013

January

45,107

40,430

February

41,835

55,356

March

34,399

49,255

April

 

38,121

May

 

36,398

June

 

39,372

July

 

37,701

August

 

50,462

September

 

40,289

October

 

45,730

November

 

45,314

December

 

30,623

TOTAL

121,341

509,051

Some reductions are identified by employers as workers who will take early retirement offers or other special considerations to leave the company.

 

LAYOFF LOCATION

 

Year To Date

New York

 

18,589

California

 

17,891

Illinois

 

9,293

Pennsylvania

 

7,833

Texas

 

6,618

 

Listings are identified by the location of the layoff or corporate headquarters as stated in announcement.


Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY INDUSTRY

 

13-Mar

14-Feb

14-Mar

Jan-Mar 2013

Jan-Mar 2014

Aerospace/Defense

3,921

1,300

895

9,766

3,061

Apparel

117

234

106

307

490

Automotive

104

518

795

4,349

2,603

Chemical

130

175

22

904

369

Commodities

 

 

324

67

726

Computer

491

793

1,884

3,526

9,133

Construction

52

166

154

245

372

Consumer Products

930

1,309

964

2,197

4,120

Education

1,391

1,500

1,639

3,812

3,354

Electronics

388

1,150

423

1,395

3,051

Energy

611

100

427

2,544

940

Entertainment/Leisure

716

1,659

2,509

5,717

6,591

Financial

3,517

9,791

698

33,819

15,306

Food

1,573

3,022

1,855

6,090

5,956

Government

1,448

1,835

1,678

3,721

4,701

Health Care/Products

6,349

2538

5,768

11,713

10,964

Industrial Goods

2,810

2,622

2,813

7,562

6,864

Insurance

943

309

207

1,108

716

Legal

106

9

1

118

219

Media

290

720

333

5,154

1,134

Non-Profit

66

35

340

596

499

Pharmaceutical

2151

1,035

580

3,185

2,521

Real Estate

100

3

 

378

84

Retail

16,445

3,848

2,989

25,400

18,231

Services

652

369

797

1,134

1,466

Telecommunications

2,536

5,147

4,325

3,471

11,277

Transportation

1,216

1,565

1,754

6,344

6,391

Utility

202

83

119

419

202

TOTAL

49,255

41,835

34,399

145,041

121,341

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

JOB CUTS BY REGION, STATE

 

EAST

MARCH

Y-T-D

New York

6,934

18,589

Pennsylvania

1,272

7,833

New Jersey

361

3,381

Massachusetts

652

2,268

Maryland

131

1,976

Dist. of Columbia

212

1,277

Connecticut

181

1,116

Maine

447

707

Vermont

238

381

Rhode Island

88

322

New Hampshire

139

199

Delaware

176

176

TOTAL

10,831

38,225

MIDWEST

MARCH

Y-T-D

Illinois

3,022

9,293

Minnesota

1,071

5,603

Ohio

595

4,941

Michigan

325

3,793

Indiana

892

2,200

Missouri

495

2,108

Wisconsin

490

2,078

Kansas

755

1,339

Iowa

286

490

Nebraska

 

63

TOTAL

7,931

31,908

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY REGION, STATE

 

WEST

MARCH

Y-T-D

California

4,850

17,891

Texas

1,218

6,618

Idaho

700

3419

Washington

1,552

1,899

Colorado

430

952

Oklahoma

367

787

Oregon

281

487

Hawaii

220

390

Nevada

 

308

Alaska

 

200

Arizona

7

132

South Dakota

 

120

Utah

24

94

New Mexico

 

50

Montana

 

24

Wyoming

 

0

North Dakota

 

0

TOTAL

9,649

33,371

SOUTH

MARCH

Y-T-D

Florida

1,730

4,038

Arkansas

14

3,054

Virginia

1,206

2,076

Mississippi

1,300

1,855

Kentucky

330

1,488

Tennessee

915

1,454

N. Carolina

198

1,402

Alabama

256

1,227

Louisiana

13

532

Georgia

 

330

S. Carolina

18

218

West Virginia

8

163

TOTAL

5,988

17,837


Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

JOB CUTS BY REASON

 

 

MARCH

YTD

Restructuring

8,569

51,910

Closing

14,301

33,523

Cost-Cutting

4,594

16,498

Demand Downturn

1,162

4,999

Merger/Acquisition

3,116

3,647

Voluntary Severance

270

2,829

Economic Conditions

253

2,626

Outsourcing

972

1,617

Health Reform

92

894

Loss of Contract

212

680

Relocation

192

571

Legal Trouble

9

459

Sequestration

390

390

Labor Dispute

250

250

Bankruptcy

17

203

Competition

 

100

Natural Disaster

 

95

Technological Update

 

47

Foreclosure

 

3

TOTAL

34,399

121,291


Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

QUARTER BY QUARTER

 

 

Q1

Q2

Q3

Q4

TOTAL

1989

9,850

10,100

24,085

67,250

111,285

1990

107,052

87,686

49,104

72,205

316,047

1991

110,056

76,622

147,507

221,107

555,292

1992*

110,815

85,486

151,849

151,850

500,000

1993

170,615

84,263

194,486

165,822

615,186

1994

192,572

107,421

117,706

98,370

516,069

1995

97,716

114,583

89,718

137,865

439,882

1996

168,695

101,818

91,784

114,850

477,147

1997

134,257

51,309

95,930

152,854

434,350

1998

139,140

131,303

161,013

246,339

677,795

1999

210,521

173,027

173,181

118,403

675,132

2000

141,853

81,568

168,875

221,664

613,960

2001

406,806

370,556

594,326

585,188

1,956,876

2002

478,905

292,393

269,090

426,435

1,466,823

2003

355,795

274,737

241,548

364,346

1,236,426

2004

262,840

209,895

251,585

315,415

1,039,735

2005

287,134

251,140

245,378

288,402

1,072,054

2006

255,878

180,580

202,771

200,593

839,822

2007

195,986

197,513

194,095

180,670

768,264

2008

200,656

275,292

287,142

460,903

1,223,993

2009

578,510

318,165

240,233

151,122

1,288,030

2010

181,183

116,494

113,595

118,701

529,973

2011

130,749

115,057

233,258

127,018

606,082

2012

143,094

139,997

102,910

137,361

523,362

2013

145,041

113,891

128,452

121,667

509,051

2014

121,341

 

 

 

121,341

AVG

205,272

158,436

182,785

212,303

735,153

*Estimate based on half-year total. Challenger began tracking job-cut data in 1993.  Before that, it was tabulated by an independent newsletter no longer published.

Copyright 2014 Challenger, Gray & Christmas, Inc.

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

 

ANNOUNCED HIRING PLANS

Monthly Totals

 

2014

2013

2012

2011

January

6,312

60,585

7,568

29,492

February

11,054

92,372

10,720

72,581

March

6,860

8,115

12,390

10,869

April

 

9,322

11,794

59,648

May

 

9,618

7,722

10,248

June

 

8,774

12,314

15,498

July

 

9,728

10,350

10,706

August

 

7,662

12,079

15,201

September

 

445,617

425,683

76,551

October

 

87,874

75,065

159,177

November

 

14,177

28,526

63,527

December

 

11,362

16,266

14,074

TOTAL

24,226

765,206

630,477

459,971

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

ANNOUNCED HIRING PLANS

 

ANNOUNCED HIRING PLANS

INDUSTRY

MARCH

YEAR-TO-DATE

Aerospace/Defense

447

647

Apparel

 

0

Automotive

1,266

2,566

Chemical

 

60

Commodities

 

0

Computer

1,350

4,400

Construction

 

235

Consumer Products

100

200

Education

80

1,505

Electronics

 

300

Energy

1000

1,000

Entertainment/Leisure

 

50

Financial

150

679

Food

340

423

Government

 

14

Health Care/Products

125

1,375

Industrial Goods

162

2,986

Insurance

700

1,070

Legal

 

60

Media

 

60

Non-Profit

70

70

Pharmaceutical

120

656

Real Estate

 

0

Retail

120

3,595

Services

100

226

Telecommunications

730

1,512

Transportation

 

537

Utility

 

0

TOTAL

6,860

24,226


Copyright 2014 Challenger, Gray & Christmas, Inc.









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