By Kevin Kastner
WASHINGTON (MNI) – There were 38,810 layoff intentions announced in
May, up from 38,326 in April, but down sharply from the 111,182 job cuts
announced in May 2009, job placement firm Challenger, Gray and
Christmas, Inc. said in a report released Wednesday. The data are not
seasonally adjusted.
Layoffs in May were led by the government sector, which reported
16,697 job reductions in the month.
“Unlike the private sector, which is beginning to see the fruits of
recovery, the budget crisis for many states and municipalities is only
getting worse,” said John Challenger, chief executive officer of
Challenger, Gray & Christmas.
With tax revenues down and an election year discouraging tax
increases, state and local governnents have “no other choice but to make
drastic cuts in public programs and the jobs that go with them,” he
added.
Challeger said that announced jobs cuts have retunrned to
pre-recession levels and that usually the upcoming summer months are
when the level of job cuts dips to the lowest levels of the year.
“It is difficult to imagine the pace of downsizing slowing even
further, considering that the economy, while recovering, is still in a
relatively fragile state,” he said. “However, monthly job cuts may
indeed continue to fall during the summer, when many businesses hold off
on making dramatic staffing changes.”
In other data released, hiring intentions fell to 14,922 in May
from 15,654 in April, but were up from 8,124 in May 2009. May hiring
plans were led by the financial sector.
** Market News International Washington Bureau: 202-371-2121 **
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