There were 55,285 corporate layoffs announced in America last month, according to a new report from Challenger, Gray & Christmas. That was a 43.7 percent increase from August, the 2nd-highest monthly total for announced layoffs 2018-to-date, and 70.9 percent higher compared to this same period last year. However, nearly half (47.9 percent) of these job cuts were due to Wells Fargo’s announcement that it will cut between 5 and 10 percent of its workforce over the next three years.
John Challenger, chief executive officer of Challenger, Gray & Christmas, added that “As the job market remains near full employment and companies struggle to find workers, large-scale job cut announcements like the one from Wells Fargo will actually provide the workers necessary for companies to gain momentum and sustain growth.” Moreover, corporate layoffs overall remain relatively low and are often being offset by announcements of even larger hiring plans. Add to that initial jobless claims continuing to hover near a half century low and it is clear that the labor market is tight, and employers are reluctant to let go of talent as they expand operations.
Sources: Econoday, U.S. DoL, Challenger, Gray & Christmas, FRBSL
Post author: Charles Couch