CHICAGO, August 3, 2017 – U.S.-based employers announced plans to cut payrolls by 28,307 jobs in July, the lowest monthly total since November 2016. Meanwhile, over 88,000 hiring announcements were recorded last month, the third-highest hiring month of the year and highest July total on record, according to a report released Thursday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
The July job-cut total is 9 percent lower than the 31,105 cuts recorded in June, and 37.6 percent lower than the same month last year, when 45,346 cuts were recorded. Last month’s job cuts were the lowest monthly total since November 2016, when 26,936 cuts were announced.
So far this year, employers announced 255,307 planned job cuts, down 28.9 percent from the 359,100 cuts announced through the first seven months of 2016.
“Job cuts have slowed significantly as we reach mid-year. This month’s total was the lowest July total since 23,238 cuts were recorded in July 1995,” said John Challenger, Chief Executive Officer of Challenger, Gray & Christmas, Inc.
In fact, monthly job cut totals have fallen under 30,000 only three times in the last ten years, all of which occurred in the last three years.
“While we have yet to see the large-scale layoffs of previous years, especially as oil and tech rebound, the specter of a downturn is on the horizon and could spell massive cuts as we head into the fourth quarter and into next year,” said Challenger.
Retail continues to lead all sectors this year with 63,989 announced cuts, 3,862 in July. Retail job cuts are 46.7 percent higher this year than through the same point last year, when 43,618 retail cuts were announced.
Health care products and services announced the second-highest number of job cuts in July, with 3,634, bringing that sector’s year-to-date total to 21,554. Companies in the services sector cut 2,607 jobs in July for a seven-month total of 18,022. Aerospace/defense companies announced 2,295 cuts in July, bringing that sector’s total through July to 11,092.
“While retailers are cutting the most jobs this year, those companies are also announcing the most hiring. These jobs are not the typical retail job, as consumers increasingly turn to online shopping. New retail jobs could be going to places like fulfillment and distribution centers, which increasingly need talent, as well as to workers with the tech skills necessary to interact with and manage the automation that’s revolutionizing the industry,” said Challenger.
Retailers have announced 245,616 of the 556,493 new jobs that have been announced so far this year, according to Challenger tracking. The seven-month hiring total is 500 percent higher than the 92,802 new jobs announced through July 2016. Computer firms have announced the second most new jobs this year 126,121, and the technology sector – Computer, Telecommunications, and Electronics combined – has announced 157,052 new hires.
“We typically see the most hiring announcements in September and October, as companies prepare for the holiday rush. It will be interesting to see whether there are such large gains again this year, or if the staffing that is currently occurring will keep those gains at bay,” said Challenger.
# # #
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
TOP FIVE INDUSTRIES
Year To Date
2017
2016
Retail
63,989
43,618
Health Care/Products
21,554
11,182
Services
18,022
7,799
Automotive
13,521
8,861
Food
13,063
11,301
MONTH-BY-MONTH TOTALS
2017
2016
January
45,934
75,114
February
36,957
61,599
March
43,310
44,207
April
36,602
64,141
May
33,092
30,157
June
31,105
38,536
July
28,307
45,346
August
32,188
September
44,324
October
30,740
November
26,936
December
33,627
TOTAL
255,307
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
California
36,883
Texas
23,705
Ohio
22,617
Indiana
17,408
New York
17,196
Copyright 2017 Challenger, Gray & Christmas, Inc.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
JOB CUTS BY INDUSTRY
16-Jul
17-Jun
17-Jul
YTD 2016
YTD 2017
Aerospace/Defense
732
791
2,295
9,048
11,092
Apparel
352
0
Automotive
480
2,174
951
8,861
13,521
Chemical
140
156
10,422
556
Commodities
454
25
1,552
25
Computer
9,875
2,715
1,448
49,464
11,136
Construction
147
1,039
937
Consumer Products
326
1,798
1,918
5,917
6,558
Education
216
1,727
1,059
7,847
10,063
Electronics
1,941
154
640
6,109
3,398
Energy
17,725
143
1,614
94,936
10,392
Entertainment/Leisure
28
1,061
728
11,396
7,626
Financial
1,524
510
1,474
17,326
7,385
Food
1,592
3,814
1,601
11,301
13,063
Government
796
719
808
5,656
6,954
Health Care/Products
449
3,597
3,634
11,182
21,554
Industrial Goods
2,425
1,819
1,531
22,767
12,693
Insurance
144
53
2,364
5,083
Legal
17
56
148
Media
220
635
249
3,369
3,094
Non-Profit
100
29
1,651
1,159
Pharmaceutical
366
193
877
6,612
4,805
Real Estate
600
50
722
505
Retail
1,523
4,217
3,862
43,618
63,989
Services
1,623
3,070
2,607
7,799
18,022
Telecommunications
940
552
202
7,344
11,569
Transportation
951
1,034
714
10,046
8,450
Utility
176
344
1,530
TOTAL
45,346
31,105
28,307
359,100
255,307
Copyright 2017 Challenger, Gray & Christmas, Inc.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
JOB CUTS BY REGION, STATE
EAST
July
YTD
New York
3,419
17,196
Pennsylvania
853
12,830
New Jersey
580
11,987
Massachusetts
252
7,756
Dist. of Columbia
603
3,346
Maine
114
1,819
Maryland
365
1,589
Connecticut
23
1,182
New Hampshire
90
602
Vermont
41
360
Delaware
264
Rhode Island
72
TOTAL
6,340
59,003
MIDWEST
July
YTD
Ohio
1,803
22,617
Indiana
370
17,408
Michigan
152
10,770
Illinois
2,301
8,930
Wisconsin
797
3,288
Minnesota
1,239
3,242
Kansas
97
2,738
Missouri
394
2,336
Iowa
206
1,433
Nebraska
18
932
TOTAL
7,377
73,694
Copyright 2017 Challenger, Gray & Christmas, Inc.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
JOB CUTS BY REGION, STATE
WEST
July
YTD
California
4,253
36,883
Texas
2,700
23,705
Washington
670
9,309
Oregon
375
3,048
Colorado
76
2,605
New Mexico
336
1,342
Arizona
814
South Dakota
695
Oklahoma
197
454
Utah
247
390
North Dakota
269
Wyoming
222
Alaska
196
Idaho
64
Montana
55
Nevada
0
Hawaii
0
TOTAL
8,854
80,051
SOUTH
July
YTD
N. Carolina
696
11,498
Florida
934
9,618
S. Carolina
1,195
3,374
Mississippi
427
2,669
Georgia
199
2,553
Alabama
990
2,397
Tennessee
167
2,204
Virginia
111
1,840
Arkansas
35
1,821
Kentucky
311
1,710
West Virginia
314
1,616
Louisiana
357
1,259
TOTAL
5,736
42,559
Copyright 2017 Challenger, Gray & Christmas, Inc.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
JOB CUTS BY REASON
July
YTD
Cost-Cutting
15,042
108,168
Closing
8,819
67,255
Restructuring
1,545
39,275
Merger/Acquisition
455
11,142
Demand Downturn
10,516
Loss of Contract
680
8,187
Bankruptcy
158
4,000
Outsourcing
608
3,116
Voluntary Severance
1,963
Oil Prices
1,000
1,000
Relocation
685
TOTAL
28,307
255,307
Copy 2017 Challenger, Gray & Christmas, Inc.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
QUARTER BY QUARTER
Q1
Q2
Q3
Q4
TOTAL
1989
9,850
10,100
24,085
67,250
111,285
1990
107,052
87,686
49,104
72,205
316,047
1991
110,056
76,622
147,507
221,107
555,292
1992*
110,815
85,486
151,849
151,850
500,000
1993
170,615
84,263
194,486
165,822
615,186
1994
192,572
107,421
117,706
98,370
516,069
1995
97,716
114,583
89,718
137,865
439,882
1996
168,695
101,818
91,784
114,850
477,147
1997
134,257
51,309
95,930
152,854
434,350
1998
139,140
131,303
161,013
246,339
677,795
1999
210,521
173,027
173,181
118,403
675,132
2000
141,853
81,568
168,875
221,664
613,960
2001
406,806
370,556
594,326
585,188
1,956,876
2002
478,905
292,393
269,090
426,435
1,466,823
2003
355,795
274,737
241,548
364,346
1,236,426
2004
262,840
209,895
251,585
315,415
1,039,735
2005
287,134
251,140
245,378
288,402
1,072,054
2006
255,878
180,580
202,771
200,593
839,822
2007
195,986
197,513
194,095
180,670
768,264
2008
200,656
275,292
287,142
460,903
1,223,993
2009
562,510
318,165
240,233
151,122
1,272,030
2010
181,183
116,494
113,595
118,701
529,973
2011
130,749
115,057
233,258
127,018
606,082
2012
143,094
139,997
102,910
137,361
523,362
2013
145,041
113,891
128,452
121,667
509,051
2014
121,341
124,693
117,374
119,763
483,171
2015
140,214
147,458
205,759
105,079
598,510
2016
180,920
132,834
121,858
91,303
526,915
2017
126,201
100,799
277,000
AVG
198,910
154,023
179,093
200,423
*Estimate based on half-year total. Challenger began tracking job-cut data in 1993. Before that, it was tabulated by an independent newsletter no longer published.
Copyright 2017 Challenger, Gray & Christmas, Inc.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
ANNOUNCED HIRING PLANS
By Month
2017
2016
2015
2014
2013
2012
January
136,501
8,362
8,774
6,312
60,585
7,568
February
25,765
7,539
14,574
11,054
92,372
10,720
March
127,006
10,997
6,412
6,860
8,115
12,390
April
61,537
11,557
13,898
11,145
9,322
11,794
May
77,447
24,732
12,598
10,141
9,618
7,722
June
40,095
13,564
11,176
15,530
8,774
12,314
July
88,142
16,051
11,637
16,544
9,728
10,350
August
9,101
11,778
9,657
7,662
12,079
September
487,075
492,306
567,705
445,617
425,683
October
135,532
86,107
147,935
87,874
75,065
November
108,994
10,026
11,291
14,177
28,526
December
35,198
11,465
7,332
11,362
16,266
TOTAL
556,493
868,702
690,751
821,506
765,206
630,477
Copyright 2017 Challenger, Gray & Christmas, Inc.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
ANNOUNCED HIRING PLANS
INDUSTRY
July
YEAR-TO-DATE
Aerospace/Defense
330
9,213
Apparel
492
Automotive
100
8,087
Chemical
263
Commodities
143
143
Computer
15,738
126,121
Construction
200
200
Consumer Products
101
1,225
Education
500
1,925
Electronics
90
1,740
Energy
400
1254
Entertainment/Leisure
14,740
89,555
Financial
285
3,507
Food
715
3,147
Government
530
1380
Health Care/Products
600
4,145
Industrial Goods
6,202
Insurance
950
Legal
0
Media
0
Non-Profit
850
Pharmaceutical
100
5,760
Real Estate
0
Retail
51,300
245,616
Services
1,020
5,992
Telecommunications
845
29,191
Transportation
405
9,535
Utility
0
TOTAL
88,142
556,493
