Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Looming job cuts march on - report

The number of job cuts announced in July jumps 26%. Airlines and financial firms top the list, according to a monthly study.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Ben Rooney, CNNMoney.com staff writer

The airline fee I dislike most is:
  • Fuel surcharge
  • Baggage fee
  • Pillow and blanket charge
  • Coffee and water charge

NEW YORK (CNNMoney.com) -- The nation's employers continue to put jobs on the chopping block at a steep rate as the economy struggles, according to a new report.

Challenger, Gray & Christmas, an outplacement consultancy firm, said Monday that planned job cuts announced by employers in July jumped 26% to 103,312 from 81,755 announced in June. That's up 141% from a year ago, when employers announced planned job cuts totaling 42,897.

The July figure marks the second-highest number of planned job cuts this year, rivaling the May reading that showed 103,522.

"We have seen job cuts increase in the majority of industries that we track," John Challenger, chief executive of Challenger, Gray & Christmas, said in a statement.

Monday's report indicates that the downturn in the housing and financial sectors, "has spread throughout much of the economy," Challenger said.

Indeed, the report showed job cuts in the works increasing from a year ago in 17 of the 25 industries tracked by Challenger.

Employers in the transportation industry announced the largest number job cuts on the horizon, at 17,051 for the month.

Planned job cuts in the transportation sector were dominated by airlines, which have struggled with soaring fuel costs and declining ticket sales due to softening consumer confidence, according to Challenger.

Transportation was followed by the financial services sector, where employers announced 15,517 job cuts on the block.

Financial firms remained led the year, having already announced 100,775 planned layoffs through July, the report showed.

Employers in the retail and automotive industries also ranked high on the list.

The Challenger report follows a Labor Department report Friday that showed the nation's unemployment rate climbing to a four-year high of 5.7%. It was the worst reading since March 2004, and slightly worse than economists' forecast of 5.6%.

But there was a bright spot in the government's report. The economy lost 51,000 jobs lost in July, which was much lower than the 75,000 loss that economists had expected.  To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
Best business class airline lounges around the world Between August 2015 and May 2016, Skytrax surveyed over 19.2 million customers to find the best airline lounges. Here is what they found. More
What Boeing's new 737 Max 9 has under the hood Boeing unveiled its new, longer 737 Max 9 airliner earlier this month, the second member of the updated single-aisle jet family. The first aircraft will deliver to airlines starting in 2018. More
Toy Fair surfaces holograms, robotic animals, dolls for boys The Toy Industry Association's annual fair revealed countless tech-enabled toys -- and some fresh takes on old classics. More