from Challenger Gray and Christmas
U.S.-based employers announced 32,423 job cuts in the last month of the year, bringing the year-end total to 418,770. That is the lowest annual total since 1990*, when 316,047 cuts were recorded.
Said John Challenger, Chief Executive Officer of Challenger, Gray & Christmas, Inc.
The retail pivot that caused thousands of store closures and job cuts was not seen in any other industry this year.
While companies in the Pharmaceutical, Health Care, Construction, and Food industries did announce more job cuts than last year, it was nothing like the Energy cuts seen in the last two years or the Financial cuts seen during the recession.
The tight labor market, coupled with uncertainty surrounding health care and tax legislation, possibly kept employers from making any long-term staffing decisions this year. However, 2018 may see an increase in job cut announcements, as companies realign with consumer demand.
Employers announced 20.5 percent fewer cuts than the previous year, when 526,915 cuts were announced. Last month saw a 7.4 percent decrease from November's total of 35,038 and a 3.6 percent decrease from the 33,627 cuts announced in the same month last year.
Retail's restructuring led to 76,084 job cuts this year, a 28.2 percent increase from 2016 when 59,324 job cuts were announced. The move from brick-and-mortar to online shopping has caused over 7,400 store closures, according to Challenger tracking.
The Health Care sector announced 40,732 job cuts, 118 percent more than last year's annual total for the industry of 18,725. The Services sector announced 36,174 cuts this year, nearly quadrupling the total from last year, which was 9,917.
Meanwhile, announced hiring plans are the highest on record, according to Challenger tracking. Employers announced plans to hire over 1,100,000 new hires, 27 percent more than the 868,702 announced last year. Concludes Challenger:
While we may see more job cuts in the first quarter of 2018, some companies have announced wage increases and bonuses for employees due to the passing of the tax bill.
AT&T, Comcast NBCUniversal, and Fifth Third Bancorp all announced $1,000 bonuses to their eligible employees. Meanwhile, Fifth Third Bank and Wells Fargo will increase their minimum wage to $15/hour. Boeing announced $300,000,000 in new investments.
Note: *Challenger began tracking job cuts in 1993. Prior years' job cuts were calculated by a newsletter no longer in circulation.
CHALLENGER, GRAY & CHRISTMAS, INC.
JOB-CUT ANNOUNCEMENT REPORT
|
TOP FIVE INDUSTRIES |
|||
|
Year To Date |
|||
|
2017 |
2016 |
||
|
Retail |
76,084 |
59,324 |
|
|
Health Care/Products |
40,732 |
18,725 |
|
|
Services |
36,174 |
9,917 |
|
|
Industrial |
34,179 |
33,435 |
|
|
Food |
20,737 |
16,260 |
|
|
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 |
33,825 |
32,188 |
|
|
September |
32,346 |
44,324 |
|
|
October |
29,831 |
30,740 |
|
|
November |
35,038 |
26,936 |
|
|
December |
32,423 |
33,627 |
|
|
TOTAL |
418,770 |
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 |
|
63,301 |
|
|
Texas |
|
38,521 |
|
|
New York |
|
27,481 |
|
|
Ohio |
|
24,742 |
|
|
Massachusetts |
|
23,242 |
JOB CUTS BY INDUSTRY
|
|
16-Dec |
17-Nov |
17-Dec |
YTD 2016 |
YTD 2017 |
Percent Change |
|
Aerospace/Defense |
2,286 |
849 |
214 |
14,153 |
14,825 |
4.7% |
|
Apparel |
200 |
1,039 |
0 |
-100.0% |
||
|
Automotive |
4,705 |
1,101 |
129 |
19,283 |
17,521 |
-9.1% |
|
Chemical |
1,920 |
66 |
13,107 |
903 |
-93.1% |
|
|
Commodities |
9 |
70 |
339 |
3,033 |
941 |
-69.0% |
|
Computer |
633 |
2,694 |
749 |
66,821 |
19,417 |
-70.9% |
|
Construction |
133 |
207 |
163 |
1,431 |
8,822 |
516.5% |
|
Consumer Products |
362 |
3,053 |
818 |
10,397 |
16,803 |
61.6% |
|
Education |
65 |
829 |
2,456 |
19,545 |
14,721 |
-24.7% |
|
Electronics |
70 |
88 |
12 |
9,078 |
4,868 |
-46.4% |
|
Energy |
2,673 |
1,001 |
787 |
107,714 |
16,631 |
-84.6% |
|
Entertainment/Leisure |
1,200 |
628 |
339 |
18,262 |
11,645 |
-36.2% |
|
Financial |
598 |
2,179 |
664 |
22,015 |
16,119 |
-26.8% |
|
Food |
2,929 |
2,210 |
759 |
16,260 |
20,737 |
27.5% |
|
Government |
3,498 |
962 |
260 |
18,653 |
9,236 |
-50.5% |
|
Health Care/Products |
1,695 |
7,011 |
2,587 |
18,725 |
40,732 |
117.5% |
|
Industrial Goods |
1,779 |
2,623 |
14,193 |
33,435 |
34,179 |
2.2% |
|
Insurance |
1,300 |
397 |
1,190 |
4,371 |
8,970 |
105.2% |
|
Legal |
193 |
106 |
588 |
454.7% |
||
|
Media |
104 |
449 |
197 |
7,792 |
4,062 |
-47.9% |
|
Non-Profit |
185 |
122 |
83 |
2,210 |
1,719 |
-22.2% |
|
Pharmaceutical |
959 |
433 |
744 |
9,940 |
13,998 |
40.8% |
|
Real Estate |
20 |
722 |
552 |
-23.5% |
||
|
Retail |
1,355 |
2,065 |
1,419 |
59,324 |
76,084 |
28.3% |
|
Services |
333 |
3,920 |
3,338 |
9,917 |
36,174 |
264.8% |
|
Telecommunications |
1,197 |
300 |
832 |
20,118 |
14,223 |
-29.3% |
|
Transportation |
3,439 |
1,249 |
131 |
18,420 |
12,258 |
-33.5% |
|
Utility |
339 |
1,044 |
2,042 |
95.6% |
||
|
TOTAL |
33,627 |
35,038 |
32,423 |
526,915 |
418,770 |
|
JOB-CUT ANNOUNCEMENT REPORT
|
EAST |
December |
YTD |
|
New York |
1,993 |
27,481 |
|
Massachusetts |
13,562 |
24,493 |
|
Pennsylvania |
509 |
21,462 |
|
New Jersey |
393 |
19,260 |
|
Dist. of Columbia |
|
4,279 |
|
Maryland |
20 |
3,217 |
|
Connecticut |
84 |
2,949 |
|
Maine |
124 |
2,022 |
|
Rhode Island |
|
787 |
|
New Hampshire |
|
619 |
|
Delaware |
|
402 |
|
Vermont |
18 |
390 |
|
|
16,703 |
107,361 |
|
MIDWEST |
December |
YTD |
|
Ohio |
618 |
25,360 |
|
Indiana |
268 |
23,510 |
|
Illinois |
1,501 |
19,222 |
|
Michigan |
516 |
13,825 |
|
Wisconsin |
|
6,733 |
|
Minnesota |
472 |
5,430 |
|
Missouri |
283 |
4,944 |
|
Kansas |
78 |
3,520 |
|
Iowa |
180 |
2,876 |
|
Nebraska |
201 |
2,323 |
|
TOTAL |
4,117 |
107,743 |
JOB CUTS BY REGION, STATE
|
WEST |
December |
YTD |
|
California |
4,521 |
63,301 |
|
Texas |
3,113 |
38,521 |
|
Washington |
30 |
10,855 |
|
Oregon |
388 |
5,128 |
|
Colorado |
225 |
4,127 |
|
Arizona |
|
1,931 |
|
New Mexico |
|
1,494 |
|
Oklahoma |
198 |
1,132 |
|
South Dakota |
409 |
1,104 |
|
Alaska |
247 |
443 |
|
Idaho |
|
429 |
|
Utah |
|
390 |
|
North Dakota |
|
269 |
|
Wyoming |
|
222 |
|
Montana |
|
99 |
|
Nevada |
|
6 |
|
Hawaii |
|
0 |
|
TOTAL |
9,131 |
129,451 |
|
SOUTH |
December |
YTD |
|
Florida |
356 |
15,365 |
|
N. Carolina |
140 |
13,215 |
|
S. Carolina |
102 |
9,881 |
|
Georgia |
178 |
7,087 |
|
Kentucky |
649 |
6,114 |
|
Tennessee |
271 |
5,417 |
|
Mississippi |
|
3,298 |
|
Virginia |
226 |
3,252 |
|
Alabama |
264 |
3,092 |
|
Arkansas |
|
2,651 |
|
West Virginia |
|
2,543 |
|
Louisiana |
286 |
2,300 |
|
TOTAL |
2,472 |
74,215 |
JOB CUTS BY REASON
|
|
December |
YTD |
|
Cost-Cutting |
13,271 |
191,295 |
|
Closing |
4,857 |
106,216 |
|
Restructuring |
12,910 |
64,188 |
|
Merger/Acquisition |
424 |
15,229 |
|
Loss of Contract |
328 |
11,106 |
|
Demand Downturn |
10,516 |
|
|
Outsourcing |
94 |
5,830 |
|
Voluntary Severance |
539 |
4,970 |
|
Bankruptcy |
4,829 |
|
|
Hurricane Irma |
1,117 |
|
|
Oil Prices |
1000 |
|
|
Hurricane Harvey |
934 |
|
|
Immigration Raid |
800 |
|
|
Relocation |
685 |
|
|
Legal Trouble |
55 |
|
|
TOTAL |
32,423 |
418,770 |
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 |
94,478 |
97,292 |
418,770 |
|
AVG |
198,910 |
154,023 |
176,176 |
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.
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 |
14,530 |
9,101 |
11,778 |
9,657 |
7,662 |
12,079 |
|
September |
422,726 |
487,075 |
492,306 |
567,705 |
445,617 |
425,683 |
|
October |
37,387 |
135,532 |
86,107 |
147,935 |
87,874 |
75,065 |
|
November |
61,300 |
108,994 |
10,026 |
11,291 |
14,177 |
28,526 |
|
December |
8,218 |
35,198 |
11,465 |
7,332 |
11,362 |
16,266 |
|
TOTAL |
1,100,654 |
868,702 |
690,751 |
821,506 |
765,206 |
630,477 |
ANNOUNCED HIRING PLANS
|
INDUSTRY |
December |
YEAR-TO-DATE |
|
Aerospace/Defense |
1,090 |
10,753 |
|
Apparel |
492 |
|
|
Automotive |
858 |
14,605 |
|
Chemical |
588 |
|
|
Commodities |
925 |
|
|
Computer |
302 |
128,523 |
|
Construction |
300 |
510 |
|
Consumer Products |
1,060 |
4,253 |
|
Education |
85 |
2,740 |
|
Electronics |
150 |
3,066 |
|
Energy |
1,354 |
|
|
Entertainment/Leisure |
130 |
98,537 |
|
Financial |
473 |
5,565 |
|
Food |
369 |
4,971 |
|
Government |
2,480 |
|
|
Health Care/Products |
72 |
6,552 |
|
Industrial Goods |
231 |
8,847 |
|
Insurance |
500 |
5,730 |
|
Legal |
0 |
|
|
Media |
1,332 |
|
|
Non-Profit |
930 |
|
|
Pharmaceutical |
6,748 |
|
|
Real Estate |
200 |
|
|
Retail |
1,045 |
568,562 |
|
Services |
1,145 |
35,449 |
|
Telecommunications |
400 |
29,896 |
|
Transportation |
8 |
156,846 |
|
Utility |
200 |
|
|
TOTAL |
8,218 |
1,100,654 |
Copyright 2017 Challenger, Gray & Christmas, Inc.
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