There were 35,038 corporate layoffs announced in America last month, according to new data from Challenger, Gray & Christmas. That is a 17 percent jump from October, the highest reading since April, and 30 percent above this same period last year. However, only 386,347 job cuts have been announced 2017-to-date, 22 percent fewer than in the first eleven months of 2016 and the lowest 11-month total since 1997. At the same time, total hiring announcements reached 1,092,436 in November, the highest print on record.
John A. Challenger, chief executive officer of Challenger, Gray & Christmas, added that “Employers have reported a lack of skilled workers to fill demand in many industries. In this tight labor market, those with the requisite skills and training have a leg up over the competition.” The labor shortage could get even worse in 2018, as evidenced by another Challenger, Gray & Christmas report which found that more than six in ten surveyed employers plan on expanding their workforce next year. That includes 42 percent of employers that already ramped up their pace of hiring in 2017 and intend on doing the same in 2018. All of this suggests that initial jobless claims in America, one of the best leading economic indicators, will remain near record lows, at least in the near-term.
Sources: Econoday, Challenger, Gray & Christmas, U.S. DoL, FRBSLPost author: Charles Couch