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Job cuts rise 15% in June
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July 7, 1999: 5:18 p.m. ET
Downsizing in first half of year surpasses same period in '98, a record
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NEW YORK (CNNfn) - The number of announced job cuts soared 15 percent in June, pushing the job cut figure in the first half of the year 42 percent above the same period in 1998, the largest downsizing year of the decade, according to a closely watched report.
Job-cut announcements totaled 63,397 in June, up 15 percent from May's 55,231, out-placement firm Challenger, Grey & Christmas said Wednesday.
Job cuts for the first half of the year totaled 383,548, 42 percent above the 270,000 in the same period last year, the biggest downsizing year of the decade, the firm said.
June's increase, which was 15 percent higher than June, 1998, marked the 15th consecutive monthly gain.
Still, the high number of job cuts comes amid a period of remarkably tight labor markets, suggesting the newly unemployed are quickly finding employment.
The jobless rate rose marginally to 4.3 percent in June from May's 4.2 percent, a 29-year low. And 268,000 nonfarm-payrolls were added during the month., the Labor Department said. Further, the number of Americans filing for first-time unemployment benefits in June stayed near the 300,000 mark every week, a figure consistent with strong job creation.
Still, June had its share of high-profile layoffs. In one of the biggest, Procter & Gamble Co. said it would cut 15,000 jobs in a broad restructuring meant to lower costs and speed product development.
Looking ahead, economists will get their first look at July's job picture Thursday when the Labor Department reports on weekly unemployment benefit claims. Economist polled by Reuters forecast claims in the week ended July 3 rising to 305,000 from 299,000 the previous week.
The Challenger report said the financial, retail and consumer good sectors continue to see the most layoffs, accounting for 30 percent of the downsizing in 1999. The Midwest led the regions in job cuts followed in descending order by the West/Southwest, the East and the South.
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