Challenger says U.S. employers' January job cuts increase 19% from year ago

Job cut announcements by U.S. corporations increased 19% in January 2008 compared to a year ago, according to a survey the outplacement firm Challenger, Gray & Christmas, Bloomberg News reported Monday. Corporations announced 74,806 job cuts in January, up from 44,416 in December 2007, and up 19% from the previous January.

Economist Glen Langan told BloggingStocks Monday that while the Challenger survey is a sample and not a comprehensive survey, the report, in conjunction with other data on jobs, helps economists form a picture of overall labor force conditions.

"I use the report in conjunction with the ADP payroll data and U.S. Labor Department job data. When the three flash negative or positive for more than two months, that's usually indicative of a labor force trend," Langan said. Last Friday, the U.S. Labor Department announced the nation lost 17,000 jobs in January 2008.

Langan said the January 2008 Challenger report is consistent with a U.S. economic slowing, and cutback in employer hiring.

"Thus far we're not seeing mass lay-offs across the economy, but hiring clearly has tapered off," Langan said. "Companies are taking a wait-and-see stance given the substantial economic slowing and legitimate concerns about future business activity."

Langan said the February and March jobs 2008 data across surveys/samples will provide a more-accurate picture of hiring conditions in early 2008, as they are away from the often-volatile holiday hiring season.