Industry

Layoffs Drop Significantly in June

As everyone anxiously awaits tomorrow’s employment numbers, a separate report is showing that companies are making the lowest number of layoffs in over a year.

The most recent report from Challenger, Gray & Christmas found that employers made 37,551 layoffs during June, a whopping 39 percent decrease from May, and marking the lowest number of job cuts in the last 13 months.

Although we’re not out of the woods yet, this is a huge step in the right direction, and offers a glimmer of hope at a time when many people are predicting that the economy is still getting worse.

“Even with recent signs that the economy is headed for another summer slump or worse, including the first contraction in manufacturing activity in three years, employers appear reluctant to shed too many workers,” Challenger CEO John A. Challenger said in a press release. “While it does not take long to shrink payrolls, it can take a significant amount of time to rebuild them, particularly as reports of the growing skills gap becomes more widespread.”

Even more encouraging is that the biggest job cuts in June were in education, just in time for schools and universities to wrap up things for the summer. And even that industry’s 6,569 layoffs were down 36 percent from last year.

“Continued weakness in the recovery will further delay hiring, which will, in turn, further delay the full recovery,” Challenger said. “Whether or not we see an  increase in job cuts depends on the length and severity of the recovery’s slowdown.

“However, barring some major economic catastrophe, companies in  the U.S. are likely to hold steady for the remainder of the year,” he added. “We probably  will not see a major ramp up in hiring or firing; certainly, not before the November elections. Even after the election and regardless of who wins, it  could be several months until companies understand the full implications of  the outcome and how to plan for the future.”

Check out the full report for more info on what industries and states are seeing the most layoffs, the top reasons companies are letting people go, and the industries planning to hire in the coming months.

Leave a Reply

Your email address will not be published. Required fields are marked *

Suggested articles

The Recruiter's Guide to the TCPA and Texting
IndustryRecruitmentTopics

The Recruiter’s Guide to the TCPA & Texting

The Telephone Consumer Protection Act (TCPA), enacted in 1991, is designed to protect consumers from unsolicited calls and messages. While its initial focus was on telemarketing calls, the TCPA’s reach now extends to texting, posing unique challenges for recruiting agencies who heavily rely on texts for candidate and client engagement.

Read more
Woo + PCRecruiter Webinar, January 14 2025
EventsIndustryPartnershipsTopics

Webinar with Woo.io on January 14

Join Gabe Mendelsohn, Partnerships Manager at Woo.io, alongside PCR’s James Blair and Drew Rothman in a webinar about uncovering the hidden potential in your database.

Read more
SEEK Update and Rounded View
PCR UpdatesSoftware

New Style Options & SEEK Update

PCR 9 is getting a few end-of-year enhancements in this week’s release, including some stylistic updates as well as updates and improvements to our integration with SEEK.

Read more

Who are PCRecruiter?

Find out more about who we and what we do.