ECONOMY:
 

Job cuts on the rise - report

The nearly 75,000 layoffs were the highest total since August, according to a consulting firm, but the cuts are still not at 2001's recession pace.

Subscribe to Economy
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

Job market down, but not out
Even with all the economic turmoil going on, CareerBuilder.com still has a lot of jobs to offer.

NEW YORK (CNNMoney.com) -- Job cuts increased 69% in January from the previous month, as the U.S. economy continues to struggle amid a housing and credit slump, according to a survey released Monday by a consulting firm.

Global outplacement consultancy Challenger, Gray & Christmas Inc. said planned layoffs swelled to 74,986 from 44,416 in December.

The year-over-year increase was 19% from January 2007's 62,975.

The January 2008 total represents the highest monthly job cut figure since August, when there were 79,459 layoffs.

The housing and financial sectors were hit the hardest, according to Challenger, while the retail, leisure and hospitality, and professional and technical services sectors actually saw employment gains last month.

But despite the large increase in layoffs month to month, job cuts remain well below the 2001 recession levels, which averaged 140,000 per month from March to September.

"The fact that job cuts have not reached pre-September 11 levels could be an indication that the impact of the economic slowdown on the job market may be muted," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, in a statement.

Challenger believes that if the government's proposed economic stimulus package works, the United States will avoid reaching the 2001 levels.

However, if the economy falls into an all-out recession, Challenger thinks that the retail, consumer products and transportation sectors will witness job cuts, especially if consumer spending plummets.

Other sectors at risk of job cuts are the pharmaceutical industry, as existing patents begin to expire, and the automotive industry, which continues to struggle with U.S. sales, according to Challenger. To top of page

Photo Galleries
Want to buy -- and live in -- a piece of history? It's not that far out of reach. These historic homes are not only for sale, they are incredible bargains. More
5 ways retailers are tracking you If you think pesky salespeople are invading your personal space, check out these 5 technologies that are tracking your movements throughout a store. More
Moto X vs. Droid Turbo: Which Droid should you buy? Motorola has made the two best Android smartphones this year. Here's how they stack up. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.