Washington, DC, August 1, 2006--Major U.S. employers announced the fewest number of job cuts in six years during July, according to a monthly tally compiled by outplacement firm Challenger Gray & Christmas.
Announcements of job reductions fell by 50% to 37,178 for the month from 75,076 in June. The latest month's total is down 64% from the 102,971 job cuts announced last July. It's the lowest since 17,241 in June 2000.
The figures, released Tuesday, are not seasonally adjusted.
So far this year, companies have announced 481,536 job cuts, down 25% from the first seven months of 2005. It would be the first year since 2000 with fewer than 1 million job reductions.
However, The July falloff could be a "calm before the storm," cautioned John Challenger, chief executive of the outplacement firm that tracks the numbers. With the exception of 2005, job cuts typically dip in the summer months when bosses are vacationing, he said.
"We have seen several warnings of heavier job cuts in the coming months," Challenger said.
For example, Intel and Boeing both part of the Dow Jones Industrial Average, have warned that major reductions in staff could be coming, he said.
Job cuts in the auto industry fell sharply in July, to just 924, after nearly 70,000 in the first six months of the year.
The Challenger report covers only a tiny fraction of those who lose their jobs each month.
In May, for instance, a total of 1.37 million workers were discharged involuntarily, according to the latest data from the Labor Department.
The layoff announcements tracked by Challenger could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements or workers leaving for other jobs. They could be offset by hiring in other divisions of a company
