Job Cuts Fall to Lowest Level Since August 2018
The Challenger Job-Cut Report signaled increased strength in the labor market in July, as U.S.-based employers announced plans to cut 38,845 jobs from their payrolls. That’s down 7.5% from the 41,977 cuts announced in the June report by Challenger, Gray & Christmas, Inc.
|Indicator||Prior (May)||Result (June)||Result (July)|
The decrease in July marks the second consecutive decrease and the lowest level since August of last year, when 38,472 job cuts were announced.
“Employment tends to be a lagging indicator, as companies often keep hiring up to the edge of a recession,” said Andrew Challenger, Vice President of Challenger, Gray & Christmas, Inc. “Right now, the labor market is strong.”
“Employees can continue to anticipate moderate wage growth and advantageous employment prospects for the time being.”
Transportation led all sectors in job cut announcements for July, with 5,532. Industrial Goods Manufacturing announced 4,403 cuts, while the Energy sector announced 3,737. Pharmaceutical companies announced 3,062.