2014 had the fewest planned job cuts since 1997, according to a recent report from Challenger, Gray & Christmas, Inc., global outplacement consultancy. Employers announced job cuts totaling 483,171 in 2014, which is 5.0 percent fewer than the 509,051 cuts tracked in 2013, and it was the lowest annual total since 434,350 job cuts were recorded in 1997, said Challenger. Sixteen of the 28 industries tracked by Challenger saw fewer layoffs in 2014, with an average decline of 34 percent. The insurance industry experienced the biggest decline, with job cuts falling 65 percent from 6,519 in 2013 to 2,259 last year. The largest increases in job cuts occurred among employers in the entertainment industry and electronics, where job cuts more than doubled in both. In the entertainment and leisure industry, job cuts jumped 125 percent from 14,342 in 2013 to 32,235. Job cuts in the electronics industry went from 8,830 to 19,408; a 120 percent surge. For more detailed information, go to http://www.challengergray.com/press/press-releases/2014-december-job-cut-report-32640-cuts-top-lowest-job-cutting-year-1997.
Produced by Challenger, Gray & Christmas, the monthly job cuts report collects and categorizes announcements of corporate layoffs using mass layoff data from state departments of labor. The report is commonly used by investors as an indicator to determine the strength of the labor market. While the Challenger Job-Cut Report is useful as a leading indicator for new jobless claims, one must understand that not all layoff announcements result in job losses in the near term. The report does not distinguish between layoffs scheduled for the short-term or long-term. In a situation where job cuts are handled through attrition instead of actual layoffs, people may resign voluntarily or the company's situation may change in order to keep their employees. As a result, the report might not be able to give an accurate picture of the actual situation in the labor market.