US Layoffs Fall 14% in October

U.S.-based employers dialed back layoffs in October from the previous month, but the number of job cuts attributable to low oil prices ticked back up to a six-month high, global outplacement firm Challenger, Gray & Christmas reported Thursday.

October payroll reductions fell 14 percent from September to 50,504, and were down 1.3 percent from the year-ago period.

More than one-quarter of announced layoffs — 13,671 positions — were blamed on falling oil prices. U.S. crude futures fell to a 6½-year low below $38 at the end of August and have since recovered to about $45, but still 40 percent below the price at this time last year.

However, Challenger, Gray & Christmas CEO John Challenger said in a statement it was not time to be too concerned.

“While falling oil prices are impacting the bottom lines of companies in the energy and industrial goods sectors, they are helping many other employers, such as those in transportation and plastics manufacturing,” he said.

Pink slips in the energy patch accounted for the highest total layoffs by sector. Energy firms announced 17,344 layoffs, marking a resurgence in cuts after five months of moderate payroll reduction in the space.

Challenger noted that employers are heading into a period that has historically seen heavy reductions even in strong economic periods. But the past is no guarantee for future performance, he warned.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza