US Challenger Job Cuts (Y/Y) Nov: -77% (Prev -71.7%) - Job Cuts Set 28-Year Low In November (YTD At A Record Low) - Neil's Summary
US Challenger Job Cuts (Y/Y) Nov: -77% (prev -71.7%)
After ticking up for two months, Challenger job cuts fell back in November to set a new 28-year low of 14,875 (down from 22.822 in October), down -77% y/y. M/m they fell by -34.8%. The cuts YTD are the lowest on record.
From the report: “With the Omicron variant emerging and the unknowns that come with its spread, coupled with the ongoing difficulty hiring and retaining workers, it’s no surprise job cuts are at record lows. Employers are spread thin, planning best- and worst-case scenarios in terms of COVID, while also contending with staff shortages and high demand,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.
Restructurings popped up to the most cited reason for dismissal in November at 5,490, followed by closings (3,232), market conditions (1,765). Vaccine refusal, which had popped into the top two, with 5,071 cuts due to that in October, fell dramatically to 384 in November.
Companies in the Technology sector announced the most job cuts in November with 1,980, for a total of 12,761 through November, down 84% from the 77,826. The Services sector announced the second-highest total in November with 1,835 for a total of 26,996 this year.
Aerospace/Defense companies have announced the most cuts this year with 34,543, 60% lower than the 85,814 announced through the same period last year.
In terms of seasonal hiring, "Through November, Challenger has tracked 940,300 seasonal hiring plans from Retailers, Transportation, and Warehousing companies, up 11% from the 849,350 announced during the 2020 holiday season. It is the most since the firm began tracking these direct announcements in 2012."
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