Econoday Report: Challenger Job-Cut Report 2, 2005

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2005 U.S. Economic Events & Analysis

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Challenger Job-Cut Report

Definition
A monthly report on the number of announced corporate layoffs. It is not adjusted for seasonal variations. The report indicates trends in the labor market. Why Investors Care

Released on 11/2/05 For Oct 2005

Announced Layoffs, Level
Actual	81,301

Highlights
Challenger's count of lay-off announcements rose in October, to 81,301 vs. 71,836 in September and perhaps a bad sign for Friday's employment report. Financial markets showed no reaction to the report.

The data are not seasonally adjusted so a look at year-on-year rates is also important, and these readings are mixed. October-to-October was down 20%, which is good, but is still less than September-to-September's 33% improvement.

Hiring intentions rose in the month to a firm 28,460 vs. 15,666 in September in a good sign for labor demand.

Though the text of the report is pessimistic as usual, it did note that year-end job cutting has not materialized. It said Katrina-related job cuts have also been slow to materialize as companies are being cautious to see how rebuilding demand unfolds.

Trends

The Challenger Job-Cut Report could serve as a leading indicator for new jobless claims. However, not all layoff announcements result in near term job losses. For instance, companies often announce layoffs that will result in job losses but not immediately. Companies would simply not replace workers who quit voluntarily.

Data Source: Haver Analytics

2005 Release Schedule

Released On: 1/5 2/2 3/2 4/5 5/3 6/2 7/6 8/3 9/2 10/5 11/2 12/7

Released For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

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