Chicago, IL, March 2, 2006--Planned layoffs fell by 15.5 percent in February to their lowest level in four months with reduced job cuts in telecommunications, consumer products manufacturing and industrial goods, according to Challenger, Gray & Christmas Inc., an employment consulting firm.
Total announced layoffs in the month were 87,437 jobs, compared with 103,466 planned cuts in January. Overall in 2006, U.S. employers have announced 190,903 job cuts, 4.9 percent lower than the 200,738 cuts in the first two months of 2005.
Employers in the government and automotive sectors, which saw the heaviest job cutting in 2005, have continued to eliminate workers at a high rate in 2006, Challenger said in a statement. The 68,990 job cuts announced by these two sectors alone this year account for 36 percent of all downsizing in 2006.
However, other areas of the economy are improving, Challenger said.
"Businesses are starting to ramp up spending on new equipment and technology and consumer spending looked relatively strong in January, despite predictions that they were tapped out," John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement.
"This may mean fewer job cuts in the months ahead as companies try to meet the steady demand for their products," he said, adding "even companies eliminating jobs could be adding jobs at the same time."
