Challenger Job Cuts measures the amount of planned and announced corporate layoffs in a month. Generally, high readings will correspond to deteriorating business conditions and a probability of a serious economic downturn. However, technological advancement, e. g. introduction of machine-operated production lines, can also be one of the reasons behind the growing number of layoffs.
The report provides information on individual industries, which is a great way of estimating the well-being of sectors of the national economy and predicting the future behavior of the stock market.
United States Challenger Job Cuts
In May 2017 US-based companies announced that they plan to lay off 51 692 people, a 41.2% increase when compared to April figures. Ford Motor Company is responsible for 39% of the total job cuts, announcing that as much as 20 000 people will lose their job with the company. The retail sector announced 5 777 job cuts, shifting consumer preferences are believed to be the reason. The indicator averaged 66 653 in the period between 1994 and 2017. An all-time high reading of 248 475 was recorded in January 2002, while an all-time minimum appeared in June 1997 and was equal to 15 100.
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