The pace of downsizing slowed in July, as U.S.-based employers announced plans to cut 38,845 jobs from their payrolls, down 7.5% from the 41,977 cuts announced in June, according to the latest report on job cuts released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
July marks the second consecutive drop in monthly job cut announcements since May, and is the lowest total since August of last year, when 38,472 job cuts were announced.
Despite the drop, July’s total is 43.2% higher than the 27,122 job cuts announced in the same month last year. So far this year, employers have announced plans to cut 369,832 jobs, a 35.8% increase from the 272,301 cuts announced in the first seven months of last year. It is the highest seven-month total since 2015, when 393,368 cuts were announced.
“The US is enjoying the longest economic expansion in American history and the June jobs report documented a decidedly strong labor market. However, slowing GDP growth in the second quarter, cuts in business investment, and trade tensions led the Federal Reserve to cut its key interest rate by a quarter-point. This move signals trouble on the horizon for the current economic cycle,” said Andrew Challenger, Vice President of Challenger, Gray & Christmas, Inc.
“Employment tends to be a lagging indicator, as companies often keep hiring up to the edge of a recession. Right now, the labor market is strong. Employees can continue to anticipate moderate wage growth and advantageous employment prospects for the time being,” he added.