CHICAGO, October 6, 2016 – Monthly job cuts increased to close out the third quarter, as employers announced plans to shed 44,324 workers from the payrolls in September, according to the report released Thursday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
Last month’s total was 38 percent higher than August, when announcements fell to 32,188, the second lowest total of the year behind May’s 30,157.
While September job cuts were up from the previous month, they were 25 percent lower than the 58,877 planned layoffs announced in September 2015.
Despite the September increase, the third quarter saw an overall decline in the third quarter.  Employers announced 121,858 job cuts during the three-month period ending September 30.  That was down 8 percent from the second quarter (132,834) and 41 percent lower than the 205,759 job cuts announced in the third quarter of 2015.
So far this year, employers have announced a total of 435,612 planned job cuts, which is 12 percent fewer than the 493,431 job cuts reported through nine months of 2015.
“Heavy job cutting in the energy sector defined the first half of the year.  But, each quarter has seen the number of overall job cuts decline, as this sector stabilized and the economy continued to improve,” said John Challenger, chief executive officer of Challenger, Gray & Christmas.
“It is not unusual to see a decreased job-cut activity in the third quarter, as many employers postpone major workforce decisions during the summer months.  We could see a resurgence in cuts to close out the year.  The fourth quarter is typically when companies make strategic moves to prepare for the coming year.
“This year could be particularly volatile in the fourth quarter, with employers holding off on significant moves until they see election results.  It’s not simply who wins the White House, but there are Senate races and countless ballot initiatives on issues like minimum wages that will influence business strategies going forward,” said Challenger.
The September increase was led by the education sector, where job cuts increased by 363 percent to 8,671.  The bulk of the job cuts came from the collapse of for-profit college ITT Technical Institute, which led to 8,000 job losses.
The computer industry continued to see heavy job cutting in September, announcing another 4,152 job cuts during the month.  That brings the annual job-cut total for the sector to 59,719, which is second only to the energy sector, which has announced 98,733 job cuts, to date.
Meanwhile, the retail sector, which announced 7,296 job cuts in September, ranks third in year-to-date job cuts with 51,939 planned layoffs through three quarters.  However, those losses will be more than offset by seasonal hiring that has already seen nearly 230,000 new jobs announced.
“Retailers aren’t the only ones boosting their hiring.  Transportation and warehouses are adding workers, as more holiday shopping is completed online.  Job seekers can also find opportunities at restaurants, caterers, and entertainment venues,” said Challenger.
“The vast majority of these jobs are temporary in nature.  However, many seasonal workers will be able to turn them into full-time positions.  For those hoping to work beyond December 31st, it is critical to make a positive impression during the holidays.”
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source: imgur.com
source: imgur.com
source: imgur.com
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
TOP FIVE INDUSTRIES

Year To Date


2016
2015

Energy
98,733
72,708

Computer
59,719
58,874

Retail
51,939
59,830

Industrial Goods
27,340
44,057

Financial
18,919
21,070





MONTH BY MONTH TOTALS




2016
2015

January
75,114
53,041

February
61,599
50,579

March
44,207
36,594

April
64,141
61,582

May
30,157
41,034

June
38,536
44,842

July
45,346
105,696

August
32,188
41,186

September
44,324
58,877

October

50,504

November

30,953

December

23,622

TOTAL
435,612
598,510





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

97,787

California

63,111

Arkansas

26,244

Illinois

19,070

N. Carolina

18,685




Listings are identified by the location of the layoff or corporate headquarters as stated in announcement.



Copyright 2016 Challenger, Gray & Christmas, Inc.


CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT

JOB CUTS BY INDUSTRY


15-Sep
16-Aug
16-Sep
Jan-Sept 2015
Jan-Sept 2016
Aerospace/Defense
2,495
285
554
10,636
9,887
Apparel
175
413
20
1,134
785
Automotive
3,180
1,296
775
11,957
10,932
Chemical
49
30
326
15,872
10,778
Commodities

560
705
503
2,817
Computer
32,500
6,103
4,152
58,874
59,719
Construction
175
160
99
764
1,298
Consumer Products
285
1,347
898
10,849
8,162
Education
523
1,872
8,671
17,180
18,390
Electronics
768
435
720
10,180
7,264
Energy
1,080
2,430
1,367
72,708
98,733
Entertainment/Leisure
1,930
3,037
469
11,536
14,902
Financial
1,025
381
1,212
21,070
18,919
Food
931
1,144
370
16,334
12,815
Government
954
942
7,156
68,871
13,754
Health Care/Products
785
1,992
1,170
19,913
14,344
Industrial Goods
7,185
3,073
1,500
44,057
27,340
Insurance
241
311
40
3,578
2,715
Legal
31


1,203
56
Media
590
224
945
3,690
4,538
Non-Profit
192
145
187
1,932
1,983
Pharmaceutical
51
389
309
6,683
7,310
Real Estate



407
722
Retail
2,467
1,025
7,296
59,830
51,939
Services
555
395
324
6,135
8,518
Telecommunications
98
1,706
4,331
3,825
13,381
Transportation
612
2,223
328
12,821
12,597
Utility

270
400
889
1,014
TOTAL
58,877
32,188
44,324
493,431
435,612






Copyright 2016 Challenger, Gray & Christmas, Inc.



CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT

JOB CUTS BY REGION, STATE


EAST
SEPTEMBER
Y-T-D
New York
381
14,926
New Jersey
860
11,502
Pennsylvania
422
9,854
Dist. of Columbia
7,036
8,093
Connecticut

7,760
Massachusetts
830
5,105
Maine
407
1,929
Maryland
259
1,711
Vermont

578
Rhode Island
70
526
New Hampshire
400
468
Delaware
50
233
TOTAL
10,715
62,685



MIDWEST
SEPTEMBER
Y-T-D
Illinois
1,933
19,070
Indiana
8,179
14,242
Ohio
296
10,529
Minnesota

8,376
Wisconsin
660
7,905
Iowa

7,792
Michigan
25
6,743
Missouri
38
5,688
Kansas

1,823
Nebraska
415
480
TOTAL
11,546
82,648






Copyright 2016 Challenger, Gray & Christmas, Inc.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT

JOB CUTS BY REGION, STATE


WEST
SEPTEMBER
Y-T-D
Texas
4,424
97,787
California
903
63,111
Washington
203
8,530
Colorado
178
7,485
Oklahoma
309
5,026
Oregon
940
3,909
Idaho

1,689
New Mexico

1,390
Arizona
263
1,190
Utah

863
Montana
84
809
Nevada

721
Hawaii

700
Alaska

584
Wyoming
15
555
North Dakota
17
350
South Dakota

73
TOTAL
7,336
194,772



SOUTH
SEPTEMBER
Y-T-D
Arkansas
7,300
26,244
N. Carolina
292
18,685
Florida
1,391
10,608
Virginia
327
8,039
Tennessee
965
7,302
Louisiana
3,940
6,116
Mississippi
20
5,306
Georgia

5,022
Kentucky
371
3,211
Alabama
121
2,353
West Virginia

1,371
S. Carolina

1,250
TOTAL
14,727
95,507


Copyright 2016 Challenger, Gray & Christmas, Inc.

CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT

JOB CUTS BY REASON


SEPTEMBER
YTD
Restructuring
18,229
153,851
Oil Prices
505
89,214
Closing
10,372
77,616
Cost-Cutting
1,213
32,521
Merger/Acquisition
3,601
17,746
Bankruptcy
479
14,263
Demand Downturn
837
11,731
Technological Update
7,140
7,145
Loss of Contract
531
6,885
Outsourcing

5,871
Relocation

3,563
Coal Downturn
517
3,341
Voluntary Severance
248
3,022
Steel Downturn
65
1,951
Competition
587
1,562
Aluminum Prices

1,152
Government Regulation

1,029
Budget Cuts

657
Copper Downturn

454
Labor Dispute

435
Listeria

311
Economic Conditions

245
Legal Trouble

230
No Reason Provided

209
Funding Loss

169
Financial Losses

125
Grain Downturn

121
Fire

100
Weather

88
Flint, MI Water Crisis

5
TOTAL
44,324
435,612


Copyright 2016 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

435,612
AVG
201,507
156,780
179,093
204,620




*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 2016 Challenger, Gray & Christmas, Inc.



CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT

ANNOUNCED HIRING PLANS
By Month


2016
2015
2014
2013
2012
2011
January
8,362
8,774
6,312
60,585
7,568
29,492
February
7,539
14,574
11,054
92,372
10,720
72,581
March
10,997
6,412
6,860
8,115
12,390
10,869
April
11,557
13,898
11,145
9,322
11,794
59,648
May
24,732
12,598
10,141
9,618
7,722
10,248
June
13,564
11,176
15,530
8,774
12,314
15,498
July
16,051
11,637
16,544
9,728
10,350
10,706
August
9,101
11,778
9,657
7,662
12,079
15,201
September
487,075
492,306
567,705
445,617
425,683
76,551
October

86,107
147,935
87,874
75,065
159,177
November

10,026
11,291
14,177
28,526
63,527
December

11,465
7,332
11,362
16,266
14,074
TOTAL
588,978
690,751
821,506
765,206
630,477
459,971











Copyright 2016 Challenger, Gray & Christmas, Inc.

CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT

ANNOUNCED HIRING PLANS


INDUSTRY
SEPTEMBER
YEAR-TO-DATE
Aerospace/Defense
75
3,225
Apparel

1,000
Automotive
700
12,148
Chemical

490
Commodities

0
Computer
20,400
29,477
Construction

506
Consumer Products

1,338
Education

596
Electronics

1,452
Energy
200
1,913
Entertainment/Leisure
800
1,542
Financial
600
3,476
Food

2,498
Government

693
Health Care/Products

4,594
Industrial Goods

5,778
Insurance

1,561
Legal

91
Media

360
Non-Profit

0
Pharmaceutical

2,728
Real Estate

150
Retail
317,000
267,343
Services

3,638
Telecommunications
300
3,557
Transportation
147,000
150,384
Utility

140
TOTAL
487,075
500,678



Copyright 2016 Challenger, Gray & Christmas, Inc.


CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT

ANNOUNCED SEASONAL HIRING PLANS



2,012
2,013
2,014
2,015
2,016
Amazon
50,000
70,000
80,000
100,000

UPS
55,000
55,000
95,000
95,000
95,000
Macy's
80,000
83,000
86,000
85,000
83,000
Kohl's
52,700
53,000
76,970
79,160
69,000
Target
88,000
70,000
70,000
70,000
70,000
Walmart
50,000
55,000
60,000
60,000

FedEx (Transportation)
20,000
20,000
50,000
55,000
50,000
Toys R Us
45,000
45,000
45,000
40,000

JC Penney
40,000
35,000
35,000
30,000
40,000
GameStop
17,000
17,000
25,000
28,000

Nordstrom
N/A
N/A
N/A
11,800

Sports Authority
N/A
N/A
N/A
3,500

Best Buy
14,000
N/A
N/A


Meijer
12,000
9,000
10,000


Radial




20,000
Party City




35,000
The Bon-Ton Stores




13,000
Gap
N/A
N/A
63,000


Versant Supply Chain




2,000
Opryland




300
Hickory Farms (Food)
5,225
6,000
N/A


TOTAL
495,925
518,000
695,970
657,460
477,300