Challenger April 2022 Job Cuts Report

Published May 5, 2022

U.S.-based employers announced 24,286 cuts in April, a 14% increase from the 21,387 announced in March and up 6% from the 22,913 cuts announced in April 2021. It is the first time this year job cuts were higher than the corresponding month a year earlier, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.

March Jobs Cuts Up 40% Over February | Created in Canva ProRelated: Challenger March 2022 Job Cuts Report: Cuts Jump 40% to 21,387

 

So far this year, employers announced plans to cut 79,982 job cuts, down 52% from the 167,599 cuts announced through the same period in 2021. It is the lowest recorded January-April total since Challenger began tracking monthly job cut announcements in 1993*. 

Challenger 2022 April Job Cuts Report - Year to date U.S. job announcements Jan Feb March April from 1993 to 2022.

*From 1989-1992, an outside newsletter tracked job cut announcements. Source: Challenger, Gray & Christmas, Inc. ©

“Job cut plans appear to be on the rise, particularly as companies assess market conditions, inflationary risks, and capital spending,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.

“Despite this, job openings are still at record highs. Workers who are being cut will have lots of opportunities and will likely land quickly,” he added.

Indeed, the latest Job Openings and Labor Turnover Survey (JOLTS) for March reported a series-high number of job openings at 11.5 million and 4.5 million quits, another record.

Industries with the Most Cuts

After four consecutive months of Health Care/Products leading job cuts, Entertainment/Leisure led all industries in April with 3,675 job cuts for a total of 6,667 this year. That is a 40% decrease from the 11,149 cuts in this sector announced through April 2021.

Source: Challenger, Gray & Christmas, Inc. ©

The Services sector announced the second-most cuts in April with 3,453, followed by Financial companies with 2,772. Retailers announced 2,213 job cuts in April.

Photo by Bit Cloud on Unsplash

 

Related: What A Difference A Year Makes: April 2021 Job Cuts Fall To 22,913; Lowest Monthly Total Since June 2000

Hiring Announcements

Employers in the United States announced 88,662 hiring plans in April, down 16% from the 105,224 hiring plans in March and up 16% from the 76,345 announced in the same month last year. Hiring plans are up 24% from the 392,578 announced in the first four months of 2021 with 486,603. 

Announced hiring plans from U.S. employers by month 2019, 2020, 2021, 2022

Source: Challenger, Gray & Christmas, Inc. ©

 

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Challenger's Media Coverage

U.S. weekly jobless claims rise; productivity plunges at fastest pace in 74 years

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Published on May 6, 2022

But there are signs that high labor costs are starting to hurt small businesses, especially those in the leisure and hospitality industry. A separate report from global outplacement firm Challenger, Gray & Christmas on Thursday showed job cuts announced by U.S.-based companies rose 14% to 24,286 in April.

 


 

U.S. weekly jobless claims increase; layoffs creep up in April

yahoo! finance logo

Published May 5, 2022

Read the full article here

But there are signs that high labor costs are starting to hurt small businesses, especially those in the leisure and hospitality industry.
A separate report from global outplacement firm Challenger, Gray & Christmas on Thursday showed job cuts announced by U.S.-based companies increased 14% to 24,286 in April.
The second straight monthly increase in layoffs was led by the leisure and hospitality industry.
“Job cut plans appear to be on the rise, particularly as companies assess market conditions, inflationary risks, and capital spending,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. “Workers who are being cut will have lots of opportunities and will likely land quickly.”

U.S. unemployment rate remains at pandemic low of 3.6 percent

The Washington Post Logo Newspaper

 

 

Employers added 428,000 jobs in April, data shows

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May 6, 2022|Updated May 6, 2022 at 1:33 p.m. EDT

Read full article here

Major companies, including Wells Fargo, have begun laying off workers in recent weeks, and others, including Amazon, have said they are overstaffed, further muddying the jobs outlook. (Amazon founder Jeff Bezos owns The Washington Post.) Overall, U.S. employers announced more than 24,000 job cuts in April, a 14 percent increase from the month before, according to figures released this week by the executive outplacement firm Challenger, Gray & Christmas.

 


 

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