Econoday Economic Report: Challenger Job-Cut Report July 1, 2009

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Challenger Job-Cut Report

Released On 7/1/2009 7:30:00 AM For June, 2009

	Prior	Actual
Announced Layoffs - Level	111,182	74,393

Highlights
Jobless claims are definitely turning lower as is Challenger's layoff count, which fell sharply in June to 74,393 vs. 111,182 in May. June's total is the lowest since the first months of the recession. The report said the results suggest the worst of the economic crisis has passed and that second-half layoff announcements are likely to be below those of the first half. But it warned that government layoffs are likely to be heavy due to cutbacks at the state and local level. The government & non-profit sector along with autos showed the heaviest layoff announcements in the month. ADP's count will be posted at 8:15 ET, and if it's as upbeat as the Challenger report, accounts will be putting aside safety and seeking return for their investments.

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