US job cuts close to unchanged in May vs April-Challenger

NEW YORK, June 2 (BestGrowthStock) – The number of planned layoffs
at U.S. companies in May was almost unchanged from April, when
they touched a four-year low, suggesting employers are more
upbeat about the economic outlook, a report on Wednesday
showed.

Employers announced 38,810 job cuts in the month, slightly
more than the 38,326 unveiled in April, according to the report
from global outplacement consultancy Challenger, Gray &
Christmas, Inc.

The report on job cut announcements comes days ahead of the
government’s much-anticipated monthly U.S. payrolls report,
which is forecast to show non-farm payrolls rose by 513,000 in
May after climbing 290,000 in April. The jobs report is due
Friday.

“Announced job cuts have, for all intents and purposes,
returned to prerecession levels,” said John A. Challenger,
chief executive officer of Challenger, Gray & Christmas, Inc in
a statement.

“What makes the low job-cut totals we have seen this spring
particularly remarkable is that we still have not reached what
is the slowest downsizing period of the year, which typically
occurs during the summer months.”

The May job-cut figure was down 65 percent from year-ago
planned layoffs of 111,182, the report said.

While overall job cuts are on the decline, the government
and non-profit sector continue to downsize, it said.

“Unlike the private sector, which is beginning to see the
fruits of recovery, the budget crisis for many states and
municipalities is only getting worse,” said Challenger.

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(Reporting by Ciara Linnane, Editing by Chizu Nomiyama)

US job cuts close to unchanged in May vs April-Challenger