econintersect.com
       
  

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 03 March 2016

February 2016 Job Cuts Fall by 18%

from Challenger Gray and Christmas

After surging to a six-month high to begin the new year, downsizing slowed in February, as US-based employers announced 61,599 job cuts during the month, 18 percent fewer than the 75,114 in January

The February total was up 22 percent from a year ago, when employers announced 50,579 job cuts during the month.

Planned job cuts total 136,713 through the first two months of the year, up 32 percent from the same period in 2015, when employers announced layoffs totaling 103,620 in January and February.

Just as in 2015, the energy sector has seen the heaviest job cutting in the opening months of the year. These firms announced another 25,051 job cuts in February, bringing the year-to-date total to 45,154. Most of the cuts in the sector have been attributed to low oil prices.

The 45,154 energy cuts through February represents a 24 percent increase from 2015, when employers in the sector announced 36,532 planned layoffs in the opening two months of the year.

Per John A. Challenger, chief executive officer of Challenger, Gray & Christmas:

Low oil prices continue to take a toll on workers in the energy and industrial goods sectors. Since January of 2015, these two sectors alone have seen workforce reductions in excess of 200,000, the majority of which were attributed to oil prices. The major concern is that the job losses in cities and towns that rely heavily on oil production will begin to drag down other parts of the local economy.

Shockingly, we have not seen a precipitous rise in unemployment in the many cities that were benefitting from the recent oil boom, suggesting that the job losses are contained to the energy sector, for the moment.

Several energy-centric metropolitan areas have seen unemployment rates increase, but most are still enjoying rates that are below the national average. The latest available date from the US Bureau of Labor Statistics shows that the unemployment rate in Houston increased from 4.0 percent in December 2014 to 4.6 percent in December 2015.

In Midland, Texas, the unemployment rate increased by more than one percentage point in 2015, but remains at an enviable 3.3 percent. As of December, Bismarck, North Dakota - another city that benefitted significantly from the oil boom - is still enjoying an unemployment rate of 2.7 percent, which is actually lower than the 3.1 percent unemployment rate recorded in December 2014.

In addition to energy, another area experiencing increased job cuts is the technology sector. Announced layoffs by computer firms this year total 16,006, which is a 143 percent increase from the 6,582 job cuts recorded in the first two months of 2015.

Challenger concludes:

"There will always be heavy churn in the tech sector. It is an area that embodies change, trial and error, and constant reinvention. There is more start-up activity in the sector, but that also means there are more failures. Even among the more established firms in the industry, we see workforce volatility, as they branch into new products or services, some of which may or may not succeed," said Challenger.


>>>>> 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


search_box

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 Econintersect.com
Main Home
Analysis Blog
Energy and Falling Productivity
Reinhard Selten: Pioneering Analyst of Rationality and Human Behaviour
News Blog
How Britain Owes Its Immigrants A Debt Of Gratitude
Super Mario, The Timeless Bestseller
Explainer: The Nine Swing States That Will Decide The Next US President
How Long Does Apple Support Older IPhone Models
What We Read Today 25 September 2016
Dangerous Ultra Pure Water
Job Employment Tenure Down
Mobile Payments Promise To Improve Financial Accessibility In Mexico
Aging Populations May Mean Lower Economic Growth
Urban Rebound Causes Large Shift In Lower Credit Borrowers To Seek The Outer Suburbs
Infographic Of The Day: How Oil Is Formed
Early Headlines: Japan Needs Fed Hike, Mexico Tanker Ablaze, 1.5C Limit Within 10 Yrs, Africa's Growth Problems, Did US Destroy Syria Truce?, Merkel: No Help For DB And More
Americans Wary Of Drone Delivery
Investing Blog
We're Back Here We Started
The Week Ahead: How Will Election News Impact The Market?
Opinion Blog
What If We're In A Depression But Don't Know It?
There's No Wall Between The Fed And Banco De Mexico
Precious Metals Blog
War On Cash Turns To $20, $50, And $100 Bills
Live Markets
23Sep2016 Market Close: US Indexes Close Lower As Crude Prices Slip, Fed Lowers Economic Growth Prospects, Indicators Melting Into Bearish Territory
Amazon Books & More






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



Crowdfunding ....






























 navigate econintersect.com

Blogs

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

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com 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