Job Cuts Balloon in January, Says Consultancy

Chicago, IL, February 4, 2008 -- Job cuts increased 69 percent in January from December, according to outplacement consultants Challenger, Gray & Christmas Inc.

The firm said planned job cuts skyrocketed to 74,986 from 44,416 in December.

Cuts increased 19 percent from last January's 62,975.

The January 2008 figure represents the highest total since August, when there were 79,459 layoffs

According to Challenger, the hardest hit sectors were housing and finance. Other sectors, including retail, leisure and hospitality, and professional and technical services sectors, gained jobs.

But job cuts remain far below the 2001 recession levels, which averaged 140,000 per month from March to September.

"The fact that job cuts have not reached pre-September 11 levels could be an indication that the impact of the economic slowdown on the job market may be muted," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, in a statement.