As everyone anxiously awaits tomorrow’s employment numbers, a separate report is showing that companies are making the lowest number of layoffs in over a year.
The most recent report from Challenger, Gray & Christmas found that employers made 37,551 layoffs during June, a whopping 39 percent decrease from May, and marking the lowest number of job cuts in the last 13 months.
Although we’re not out of the woods yet, this is a huge step in the right direction, and offers a glimmer of hope at a time when many people are predicting that the economy is still getting worse.
“Even with recent signs that the economy is headed for another summer slump or worse, including the first contraction in manufacturing activity in three years, employers appear reluctant to shed too many workers,” Challenger CEO John A. Challenger said in a press release. “While it does not take long to shrink payrolls, it can take a significant amount of time to rebuild them, particularly as reports of the growing skills gap becomes more widespread.”
Even more encouraging is that the biggest job cuts in June were in education, just in time for schools and universities to wrap up things for the summer. And even that industry’s 6,569 layoffs were down 36 percent from last year.
“Continued weakness in the recovery will further delay hiring, which will, in turn, further delay the full recovery,” Challenger said. “Whether or not we see an increase in job cuts depends on the length and severity of the recovery’s slowdown.
“However, barring some major economic catastrophe, companies in the U.S. are likely to hold steady for the remainder of the year,” he added. “We probably will not see a major ramp up in hiring or firing; certainly, not before the November elections. Even after the election and regardless of who wins, it could be several months until companies understand the full implications of the outcome and how to plan for the future.”
Check out the full report for more info on what industries and states are seeing the most layoffs, the top reasons companies are letting people go, and the industries planning to hire in the coming months.