from Challenger Gray and Christmas
The nation’s employers announced plans to cut 44,653 jobs in January, 37.7 percent more than the 32,423 cuts announced in December.
While January cuts were up from the previous month, they were 2.8 percent lower than the same month one year ago, when 45,934 cuts were announced.
Said John Challenger, Chief Executive Officer of Challenger, Gray & Christmas, Inc.
Many companies are enjoying relative financial health and a strong economy right now. The good news for those who are finding themselves separated from their previous companies is that employers are scrambling to find talent.
Retail, Consumer Products, and Services are all sectors ripe for automation. This may spell a loss of jobs in the short term, but could create better, higher-paying jobs going forward
Retailers cut 31.6 percent fewer jobs last month than in January 2017, when 22,491 were recorded. Last January, retailers saw the highest single-month total since 53,968 Retail cuts were announced in January 2009.
The Consumer Products sector announced the second highest number of job cuts last month, with 7,158, while Health Care and Products companies announced 6,531.
The Services sector announced 3,212 cuts in January, while companies in the Transportation sector announced 1,472 cuts last month. Concludes Challenger:
It remains to be seen what impact the passage of tax legislation will have on companies’ staffing plans. We’ve seen a number of companies announce one-time bonuses or a raise to their minimum wages. Other companies are planning new investments, and several have pledged new jobs.
According to Challenger tracking, seven companies have announced plans to add over 37,000 new jobs, so far. This includes Apple’s announcement of creating 20,000 new jobs and Starbucks pledge to hire 8,500 new workers. Nearly 180 companies have announced some sort of investment, either through bonuses to employees, increased wages, new jobs, or new facilities.
In fact, nearly 60 companies announced they are raising wages for their workers, typically to around $15 per hour.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
TOP FIVE INDUSTRIES | |||
Year To Date | |||
2018 | 2017 | ||
Retail | 15,378 | 22,491 | |
Consumer | 7,158 | 316 | |
Health Care/Products | 6,531 | 2,250 | |
Services | 3,212 | 1,691 | |
Transportation | 1,472 | 328 | |
MONTH-BY-MONTH TOTALS | |||
| 2018 | 2017 | |
January | 44,653 | 45,934 | |
February |
| 36,957 | |
March | 43,310 | ||
April |
| 36,602 | |
May |
| 33,092 | |
June |
| 31,105 | |
July |
| 28,307 | |
August | 33,825 | ||
September | 32,346 | ||
October | 29,831 | ||
November | 35,038 | ||
December | 32,423 | ||
TOTAL | 44,653 | 418,770 | |
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 | |||
Texas |
| 8,951 | |
Ohio |
| 7,215 | |
California |
| 6,579 | |
New York |
| 2,811 | |
Pennsylvania |
| 2,350 |
JOB CUTS BY INDUSTRY
| 17-Jan | 17-Dec | 18-Jan |
Aerospace/Defense | 964 | 214 | 295 |
Apparel | 0 | ||
Automotive | 3,365 | 129 | 703 |
Chemical | 51 | 65 | |
Commodities | 339 | 153 | |
Computer | 2,211 | 749 | 756 |
Construction | 370 | 163 | 69 |
Consumer Products | 316 | 818 | 7,158 |
Education | 146 | 2,456 | 135 |
Electronics | 90 | 12 | 571 |
Energy | 1,853 | 787 | 1,129 |
Entertainment/Leisure | 1,634 | 339 | 440 |
Financial | 260 | 664 | 637 |
Food | 387 | 759 | 1,286 |
Government | 1897 | 260 | 328 |
Health Care/Products | 2,250 | 2,587 | 6,531 |
Industrial Goods | 1,306 | 14,193 | 964 |
Insurance | 138 | 1,190 | 428 |
Legal | 3 | 0 | |
Media | 546 | 197 | 855 |
Non-Profit | 234 | 83 | 36 |
Pharmaceutical | 872 | 744 | 976 |
Real Estate | 48 | 20 | 55 |
Retail | 22,491 | 1,419 | 15,378 |
Services | 1,691 | 3,338 | 3,212 |
Telecommunications | 1,033 | 832 | 951 |
Transportation | 328 | 131 | 1,472 |
Utility | 1450 | 70 | |
TOTAL | 45,934 | 32,423 | 44,653 |
JOB CUTS BY REGION, STATE
EAST | January |
New York | 2,811 |
Pennsylvania | 2,350 |
Massachusetts | 972 |
Connecticut | 601 |
Rhode Island | 477 |
Maryland | 378 |
New Jersey | 102 |
Dist. of Columbia |
|
Delaware |
|
New Hampshire |
|
Vermont |
|
Maine |
|
| 7,691 |
MIDWEST | January |
Ohio | 7,215 |
Missouri | 1,152 |
Illinois | 1,072 |
Indiana | 969 |
Michigan | 828 |
Wisconsin | 676 |
Iowa | 382 |
Minnesota | 331 |
Nebraska | 228 |
Kansas | 161 |
TOTAL | 13,014 |
JOB CUTS BY REGION, STATE
WEST | January |
Texas | 8,951 |
California | 6,579 |
Arizona | 644 |
Alaska | 592 |
Washington | 515 |
Oklahoma | 246 |
Oregon | 208 |
Colorado | 197 |
Idaho | 135 |
Nevada | 100 |
New Mexico | 12 |
Utah |
|
Montana |
|
Hawaii |
|
Wyoming |
|
South Dakota |
|
North Dakota |
|
TOTAL | 18,179 |
SOUTH | January |
Florida | 1,247 |
Arkansas | 1,058 |
N. Carolina | 670 |
Georgia | 590 |
Virginia | 450 |
Alabama | 405 |
S. Carolina | 357 |
Kentucky | 328 |
Tennessee | 294 |
Louisiana | 270 |
Mississippi | 100 |
West Virginia |
|
TOTAL | 5,769 |
JOB CUTS BY REASON
| January |
Closing | 23,785 |
Cost-Cutting | 10,660 |
Restructuring | 6,625 |
Contract Loss | 1,748 |
Acquisition/Merger | 762 |
Outsourcing | 680 |
Relocation | 333 |
Bankruptcy | 60 |
TOTAL | 44,653 |
Copyright 2018 Challenger, Gray & Christmas, Inc.
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