Econoday Economic Report: Challenger Job-Cut Report June 3, 2009

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Challenger Job-Cut Report

Released On 6/3/2009 7:30:00 AM For May, 2009

	Prior	Actual
Announced Layoffs - Level	132,590	111,182

Highlights
Challenger's layoff count fell to 111,182 in May vs. April's 132,590 to hint at sequential improvement in Friday's employment report. But the data do not include still unconfirmed layoffs at auto dealers. Cuts in May were heaviest in the government sector as tax receipts at the state and local level, hit by the recession, dry up. ADP's closely watched count comes out 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