The May '12 Challenger job cuts report was disappointing.
It came in at 61,887, up 52.6% from
April's 40,559, and up 66.7% from May '11.
YTD job cuts of 245,540 are up 20.1%.
Top three reasons for job cuts were restructuring, closing and
cost-cutting, which we think indicate not-so-great, or moderate, economic
conditions at best. Total planned job
cuts in May were highest in the computer, transportation and financial
industries; and highest in the Western region with CA leading the way.
On the hiring front, according to Challenger, there were
7,722 announced hiring plans in May, down 4,072 m/m, and down 2,526 Y/Y. Hiring plans were highest in the automotive,
health care/products, and industrial goods industries.
This report certainly isn't positive. However, it does not necessarily indicate how
good or bad tomorrow's official employment report will be. A better indicator, although not
accurate, is the ADP report which will be released at 8:15am.
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