FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 04 June 2015

Oil Related Job Cuts Subside. Job Cuts Decline by 33% in May 2015

from Challenger Gray and Christmas

After reaching a three year high in April, planned job cuts announced by U.S.-based firms declined sharply in May, falling by 33 percent to 41,034.

The latest tally on employer downsizing activity comes on the heels of the 61,582 planned job cuts announced in April. That was the highest monthly total since 61,887 layoffs were recorded in May 2012.

Last month's total was 23 percent lower than a year ago, when 52,961 planned job cuts were announced in May.

To date, employers have announced 242,830 in 2015. That is 13 percent more than the 214,600 job cuts announced in the first five months of 2014.

Job cut announcements related to falling oil prices appear to be ebbing. In May, just over 1,000 planned layoffs were attributed to the drop in oil. In contrast, April saw 20,675 job cuts blamed on oil prices. Per John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

Oil prices are starting to stabilize. Exploration and extraction companies responded quickly to the drop in prices, but they are likely to be careful about cutting too deeply, as they will need workers on hand when demand inevitably increases. Unless, there is another severe drop in the price of oil, we probably will not see another surge in oil-related job cuts this year.

In May, the heaviest downsizing occurred in the financial sector, where announced job cuts will impact 5,539 workers. The bulk of these cuts came from banking giant JP Morgan Chase, which announced that the number of tellers working in its branches will shrink by 5,000 over the next 18 months.

Overall, financial cuts total 14,853 in 2015, which is 28 percent fewer than the 20,581 job cuts announced in the sector during the first five months of 2014.

The government was the second leading job-cut sector in May, having announced 5,539 layoffs during the month. Most of these originated from one employer; the state of Massachusetts, which announced plans to trim its payroll by 4,500 workers in an effort to close a $1.8 billion budget gap. Concluded Challenger:

A lot of states were undoubtedly hoping that economic recovery would solve their budget woes, most of which can be traced back to overwhelmed pension systems. For most states, these dreams have failed to materialize. At least 16 states, including Massachusetts, Maryland, Illinois, Wisconsin, and Washington are expected to experience budget shortfalls over the next year or two.

We could definitely see an upswing in state layoffs over the next few months, if more of these financially troubled state governments follow in Massachusetts' footsteps.

>>>>> Scroll down to view and make comments <<<<<<

Permanent link to most recent post on this topic

Click here for Historical Releases Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Economic Releases


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Taking a Wrench to Healthcare
Rising Tide Does Not Lift All Ships
News Blog
Acupuncture Is Useless
September 2016 CFNAI Super Index Moving Average Declines
Consequences Of Rising Income Inequality
America's Most Competitive Renters: Why Many Are Choosing To Rent
Historical Echoes: The Bank Teller Action Figure, Or It's All In The Packaging
Infographic Of The Day: The Oil Market Is Bigger Than All Metal Markets Combined
U.S. 2016 Election Divides Advanced And Emerging Economies
Which Countries Read The Most
The World's Most Expensive Retail Locations
How To Help Energy Demand Match Renewable Supply
Music Subscriptions Revive Revenue
How The Space Station Avoids Junk In Space
Infographic Of The Day: The Most Popular Jobs In A Decade
Investing Blog
FinTech Is Taking A Bite Out Of Banks
Options Early Assignment - Should You Worry?
Opinion Blog
The Beer Goggles Stock Market
US 2016 Election: Will US-China Relations Change
Precious Metals Blog
Preparing For Post-Election Social Unrest
Live Markets
24Oct2016 Market Close: Wall Street Closes Higher, Quietly On Low Volume, Crude Back Up, US Dollar Trading At Resistance, Investors Remain Skeptical On Continuing Bullish Market
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved