Washington, DC, Jun. 1--Job reductions by U.S. corporations were nearly unchanged in May at 73,368, up 1.6 percent from April's 72,184, according to a monthly tally released Tuesday by outplacement firm Challenger Gray & Christmas.
Retail companies announced 10,868 job reductions in May. Telecommunications companies announced 8,750, and government and nonprofit organizations cut 7,532 jobs.
Layoffs have essentially been flat for the past three months, near 70,000. The 12-month monthly moving average rose to 89,500 from 89,105.
May layoff announcements were up 6.9 percent from the 68,723 reported in May 2003. Year-to-date, layoffs are down 28 percent from a year ago. The financial sector has cut the most jobs this year, 46,647.
"Overall, job cuts are down from last year and significantly lower than the record numbers we saw in 2002 and 2001, but there are still some worrisome trends," said John A. Challenger, president of the firm. "Increased job cutting in the retail, financial and industrial goods sectors is not what one would expect in a strong recovery situation.
"We still have not returned to pre-recession levels, when job cuts averaged about 51,000 per month," he said.
The company tracks layoff announcements, not actual layoffs or reductions, which can be accomplished immediately or over a course of months. Some of the reductions result in voluntary departures, including retirements. The figures are not seasonally adjusted.
For the first time, Challenger also released a tally of hiring announcements. In May, U.S. corporations announced plans to hire 55,307 workers. About half the hiring was in unspecified services and in government.
