Planned Job Cuts Fewest in Two Years

Chicago, IL, Dec. 2, 2009--Employers in November announced the fewest number of job cuts since the recession began two years as the economic recovery encouraged companies to retain workers, according to placement firm Challenger, Gray, Christmas.

In a related item, ADP reported that private-sector firms in the U.S. eliminated 169,000 jobs in November, the fewest jobs lost since July 2008.

Challenger said that planned firings fell 72 percent in November to 50,349 from 181,671 during the same month last year. Announcements were down 9.6 percent from October.

“Barring any unexpected shocks to the economy, we appear to be coming out of the woods when it comes to downsizing,” John A. Challenger, chief executive officer of the placement company, said in a press release.

“At the moment, payrolls continue to experience net losses every month, a trend that is likely to repeat through the end of the year.”

The level of announced job cuts was the lowest since December 2007, Challenger said.

The Challenger report also showed companies in November announced plans to hire 10,076 workers. The energy, automotive and computer industries topped the list of planned employment.

ADP said that in October a revised 195,000 jobs were lost compared with the 203,000 originally reported. Job losses peaked at 736,000 in March and have lessened every month since.

"Although overall economic activity is stabilizing, employment usually trails economic activity, so it is likely to decline for at least a few more months," ADP said.

Goods-producing jobs fell by 88,000 in November, including 44,000 in manufacturing and 44,000 in construction. Services-producing jobs fell by 81,000.