Econoday Economic Report: Challenger Job-Cut Report March 4, 2009

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Challenger Job-Cut Report

Released On 3/4/2009 7:30:00 AM For February, 2009

	Prior	Actual
Announced Layoffs - Level	241,749	186,350

Highlights
In a positive signal for Friday's employment report, Challenger's count of layoff announcements fell to 186,350 in February, well down from January's 241,749. Challenger's data aren't seasonally adjusted which makes year-on-year comparisons especially important. February's year-on-year gain is 159 percent, well down from January's 222 percent year-on-year jump. February's job losses were centered in autos, industrial goods, and retail. ADP's count is up at 8:15 ET.

Definition
This monthly report counts and categorizes announcements of corporate layoffs based on mass layoff data from state departments of labor. The job-cut report must be analyzed with caution. It doesn't distinguish between layoffs scheduled for the short-term or the long term, or whether job cuts are handled through attrition or actual layoffs. Also, the job-cut report does not include jobs eliminated in small batches over a longer time period. Unlike most economic data, this series is not adjusted for seasonal variation. Why Investors Care

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

2009 Release Schedule

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

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