Layoff Announcements up 76% in August — Report

by Patrick Lunsford, CollectionIndustry.com

Announcements of layoffs at major U.S. employers rose by 76% in August, only the second increase this year, according to a monthly survey conducted by Challenger Gray & Christmas released Tuesday.

Job-cut announcements rose to 65,278 in August from 37,178 in July, “in what may signal an early start to year-end downsizing,” the report stated.

The figures reflect raw data rather than seasonally adjusted figures; typically, job cut numbers are lower in summer months.

The report comes four days after the Labor Department reported that nonfarm payrolls grew by 128,000 in August, while the unemployment rate ticked lower to 4.7%. Government data show a softer pace of hiring, while first-time claims for jobless benefits have ticked slightly higher.