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 02 February 2017

January 2017 Job Cuts Surge

from Challenger Gray and Christmas

The new year started with an increase in corporate downsizing, as the nation's employers announced plans to cut payrolls by 45,934 in January.

January job-cut announcements were up 37 percent from December 2016, when planned layoffs totaled 33,627.

While last month's tally was the highest since last April (64,141), it was 39 percent lower than January 2016, when employers announced plans to eliminate 75,114 jobs from their ranks.

January job cuts in 2016 were dominated by the energy and retail sectors. This year, planned cuts were concentrated in just retail, which continues to reel from the shift toward online shopping.

The top four job cuts announced during the month occurred in the retail sector, with Macy's leading the pack by reporting plans to close 68 stores and decrease its headcount by 10,000 workers. Said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

Overall, it was a solid holiday shopping season, but several retailers, including Macy's were unable to capitalize on stronger consumer confidence and spending.

In all, retailers announced 22,491 planned layoffs in January, accounting for 49 percent of all job cuts recorded during the month. The January total is virtually unchanged from the previous January, when retailers announced 22,246 job cuts to start 2016.

STRUGGLING RETAILERS

January

Stores Closed

Job Cuts

Macy's

68

10,000

The Limited

250

4,000

American Apparel*

110

3,457

Wet Seal Inc.

171

3,000

Lowe's

2,400

Sears/Kmart**

150

406

Abercrombie & Fitch***

60

150

*Based on California Worker Adjustment and Retraining Notification Act listing

**Only cuts found so far in announcements, news reports

***Corporate cuts

Source: Challenger, Gray & Christmas, Inc. ©

Said Challenger:

A January surge in retail hiring has become the standard. Most retailers ramp up hiring in the final three months of the year to handle the holiday rush. However, as consumers increasingly go online to shop, retailers are not only dismissing temporary seasonal workers, but also increasingly closing stores and laying off permanent staff.

Meanwhile, the energy sector, which announced 20,103 job cuts in January 2016, reported just 1,853 planned layoffs to kick off 2017.

Oil prices were already starting to rebound in the last half of 2016. Now, with an administration that is expected to be very friendly to the oil, gas, and mining industries, many are forecasting a swift and sustained turnaround for these firms in 2017. The fact that January job cuts in the sector were 91 percent lower than a year ago, certainly appears to support that outlook.

January 2016 also experienced heavy layoffs in the computer industry, where employers announced plans to shed 11,003 job cuts. This year, however, job-cut plans announced by these firms totaled 2,211 in the first month of 2017. That represents an 80 percent decline. Challlenger concludes:

Job cuts will not be the leading story in the tech industry this year. It is more likely to be labor shortages, particularly if the new administration continues to tighten the boarders to immigrants, many of whom come to America to work at leading tech companies.

CHALLENGER, GRAY & CHRISTMAS, INC.

JOB-CUT ANNOUNCEMENT REPORT

TOP FIVE INDUSTRIES

Year To Date

2017

2016

Retail

22,491

22,246

Automotive

3,365

1,238

Health Care/Products

2,250

494

Computer

2,211

11,003

Government

1,897

149

MONTH BY MONTH TOTALS

2017

2016

January

45,934

75,114

February

61,599

March

44,207

April

64,141

May

30,157

June

38,536

July

45,346

August

32,188

September

44,324

October

30,740

November

26,936

December

33,627

TOTAL

526,915

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

Ohio

16,104

California

7,142

N. Carolina

3,088

Texas

2,648

Michigan

2,286

JOB CUTS BY INDUSTRY

16-Jan

16-Dec

17-Jan

Aerospace/Defense

731

2,286

964

Apparel

200

Automotive

1,238

4,705

3,365

Chemical

150

1,920

51

Commodities

9

Computer

11,003

633

2,211

Construction

94

133

370

Consumer Products

874

362

316

Education

670

65

146

Electronics

515

70

90

Energy

20,103

2,673

1,853

Entertainment/Leisure

32

1,200

1,634

Financial

998

598

260

Food

1,726

2,929

387

Government

149

3,498

1,897

Health Care/Products

494

1,695

2,250

Industrial Goods

3,009

1,779

1,306

Insurance

75

1,300

138

Legal

45

3

Media

836

104

546

Non-Profit

821

185

234

Pharmaceutical

3,046

959

872

Real Estate

48

Retail

22,246

1,355

22,491

Services

155

333

1,691

Telecommunications

3,371

1,197

1,033

Transportation

2,712

3,439

328

Utility

21

1,450

TOTAL

75,114

33,627

45,934

Copyright 2017 Challenger, Gray & Christmas, Inc.

z%20challenger_jobcuts.png


>>>>> 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. 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
Men Without Work
Slow Economic Growth Will Be Around For A Long Time
News Blog
Crumbling Comet? The Great Debate About Whether Rosetta Rock 67P Is Breaking Apart
ISIS: Income Has More Than Halved Since 2014
What We Read Today 29 March 2017
The Best Hilarious Prank Ideas For April Fools' Day
February 2017 Pending Home Sales Index Improves?
The Need For Very Low Interest Rates In An Era Of Subdued Investment Spending
America's Missing Workers Are Primarily Middle Educated
The Share Of American Women In The Labor Force Is Slipping Even As It Rises In The Rest Of The Developed World
Infographic Of The Day: Which Countries Are Going In The Right Direction
Early Headlines: Asia Stocks Mixed, Dollar, Oil Up, Gold Down, Article 50 Day, Westinghouse Files Ch. 11, Trump Wants $1B To Start Wall, Russian Protests, China's $8T Shaky Debt, And More
Thirty Plus Terror Suspects And Convicts Not A Rare Occurrence In UK
The Winners And Losers In Trump's Proposed Budget
God and America (Version 3)
Investing Blog
Investing.com Technical Summary 28 March 2017
The Dollar's Coming Impact On Markets
Opinion Blog
Free Immigration Is The Moderate, Common-Sense Position
Macron May Lead But Le Pen Remains The Big Story
Precious Metals Blog
These Gold Stocks Will Produce Much Bigger Gains Than Gold Itself
Live Markets
29Mar2017 Market Close: DOW Closes Down 42 Points, SP 500 Up At Close, Nasdaq Clearly The Winner Closing Up 0.4 Percent, Wall Street Investors Happy
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































 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 - 2017 Econintersect LLC - all rights reserved