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

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:
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. 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: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. 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 2018 and/or its affiliates.