Layoffs slowing down, but that doesn't mean hiring

Posted Dec 2nd 2009 9:20AM by Tom Johansmeyer
Filed under: Employees, Economic Data

Planned job cuts fell to 50,349 in November, the lowest level in nearly two years. The 9.6% decline from October, according to Challenger, Gray & Christmas, is the fourth month in a row in which layoffs fell. Also, from November 2008 to November 2009, planned reductions plunged 72% from 181,671. November was the worst month of 2008.

Challenger, Gray & Christmas sees companies slowing down the axe-swinging, a trend that has continued through the back half of 2009. Since July 1, 2009, employers have cut an average of 69,252 jobs each month. Through the end of June, the average was 149,446. The aggressive layoff pace in the first two quarters of 2009 have pushed this year's total ahead of 2008, with the year-to-date planned reduction total reaching 1,242,936 last month. That beats the 2008 full-year total of 1,223,993 and tops the November 2008 amount of 1,057,645 by 17.5%.

According to John Challenger, CEO of Challenger, Gray & Christmas, "Most industries are seeing job cuts subside. Barring any unexpected shocks to the economy, we appear to be coming out of the woods when it comes to downsizing." He notes, however, that a slowing of cuts doesn't mean an increase in hiring. "This is not to say that there is absolutely no hiring," he continues. "On the contrary, employers have been hiring about four million new workers per month over the last several months, according to one government report. In addition, there were about two-to-three million unfilled job openings as of the end of September," he said.

If you're holding off your job search until after the first of next year, Challenger advises, don't: "Now is actually a great time to double one's efforts. Not only is there less competition, but many decision makers who might travel a lot during the year, catch up on work around the office as business slows. The odds are greater that you will connect with a hiring authority in your specific field."

Tags: Challenger Gray Christmas, ChallengerGrayChristmas, inthenews, job cuts, JobCuts, layoff, layoffs

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Reader Comments (Page 1 of 1)

12-02-2009 @ 10:10AM

clikdawg said...

When you are bleeding really badly, and the blood flow slows but nothing has really been done about the wound itself, you are NOT improving -- you are dying.

12-02-2009 @ 3:42PM

william lindblad said...

Can't say I agree with Mr. Challenger as he is taking a glass 1/2 empty vs 1/2 full view, and his is 1/2 full and rising. I see the contrary. A good deal of the employment that is being generated is government/government stimulus related and without this, the hiring statistics would be much different. We shall have to see, for his view to be correct those that have been seeking jobs for long periods should now be able to connect. If so, that's great and a sure sign that a recovery is in progress. I, along with the rest of the U.S. would like to believe it. However the other side to the stats says it just ain't so. UN-employment is still on the greater side of 10% and we all know that those whose benefits have lapsed are not counted and thus, the real figure is much higher. True, layoffs are slowing but that is only because employers need a workforce of some kind unless one plans to close.

Opinion is worthless without fact.