July Lay-Offs Lowest in a Year

Chicago, IL, August 1, 2007—Planned lay-offs fell 23% in July to the lowest in 12 months, but cuts in the transportation and electronic industries were the most in more than a year, an independent report showed on Wednesday.

 

Announced lay-offs totaled 42,897 in July, down from 55,726 in June, according to Challenger, Gray & Christmas Inc., an employment consulting firm. July's job cuts were the lowest since July 2006, when they totaled 37,178.

 

High fuel costs pinched the transportation industry in particular, leading to 9,722 lay-offs in July, the most of any industry. Mortgage-related businesses in the financial sector apparently had a slight respite from job cuts in July, but John A. Challenger, chief executive officer of Challenger, Gray & Christmas, warned that more could be in store.

 

"We have not seen the end of housing-related job cuts. The collapse in subprime lending will continue to ripple through the financial sector," he said.

 

The financial sector continues to lead job cuts for the year, with 67,006 year-to-date, compared with 31,680 in 2006.