Chicago, IL, May 2, 2006--Employers in April, for the fourth consecutive month, planned fewer job cuts than in the preceding 4-week period.
Outplacement consultancy Challenger, Gray & Christmas Inc. said 59,688 April job cuts were 8.1 percent lower than March's 64,975. Total job cuts announced since January were 315,566, 8.5 percent lower than the 4-month total a year ago.
"The slowdown in job cuts is a product of the strong economic performance in the first quarter, which saw (gross domestic product) advance 4.8 percent, the highest gain in 2 1/2 years. Consumers are more confident and business leaders are more confident and are focusing on worker retention," said a CGC spokesman.
"The expectation that a tight labor market automatically means higher wages is not working now. Simply put, until employers can sell the idea to customers that prices must go up, wage hikes will be few and far between. Perks, yes--flex-time, telecommuting--but not necessarily much more pay. Competitors will be quick to devour any attempt at hiking prices," he said.
