Planned Job Cuts Decline from Last Year

Chicago, IL, June 1, 2011 -- U.S. employers announced fewer job cuts in May than a year ago, according to outplacement firm Challenger, Gray & Christmas.

Planned firings dropped 4.3% to 37,135 last month from May 2010, the firm said, as government and nonprofit agencies had the most cutbacks.

Announced job reductions in the first five months of 2011 were down 21% from the year-earlier period.

“It is unlikely that we will see a sudden resurgence in corporate downsizing in the months ahead unless there is a major shock to the economy,”  CEO John A. Challenger said in a press release.

Although there are recent signs of weakness, including slower manufacturing and a sluggish housing market, the report suggests “employers do not see these as long-term problems,” he said.

Compared with April, job-cut announcements rose 1.8%.