A report released on Wednesday found the number of planned layoffs at U.S. firms jumped in September to its highest point in more than two years. While this means many employees will need to prepare for a layoff, a separate report found that U.S. private-sector employers added more jobs than expected last month.
Heavy Military and BofA Cutbacks Spark Rise in Layoffs
The number of planned layoffs in September was much higher than expected due to heavy cutbacks by the U.S. military and Bank of America, according to a new report from consultants Challenger, Gray & Christmas, Inc.
Employers announced 115,730 planned cuts last month, which is more than double the 51,114 total for August. This figure was the highest since April 2009 when employers announced 132,590 layoffs.
This jump in planned cuts has significantly increased the total number of planned layoffs from the same time a year ago. For 2011 so far, employers have announced 479,064 planned layoffs, which is up 16.5 percent from the first nine months of 2010.
Separate Jobs Report Shows Increase in Payrolls
The consultants’ report brought grim news about the economy, but a separate report released by payrolls processor ADP offers a brighter picture about the current state of the workforce.
The processor found that private payrolls rose 91,000, above expectations for a gain of 75,000 in a Reuters poll. The data also comes ahead of Friday’s monthly report on total U.S. nonfarm payrolls from the U.S. Labor Department, which is expected to see a gain of 60,000 payrolls last month.
Gary Thayer, chief macroeconomic strategist at Wells Fargo Advisors in St. Louis, Mo., told Reuters that while the economy is recovering slowly, it is moving in the right direction.
“The problem is the government sector is cutting jobs,” he said. But despite the cuts, he explained that ”It looks like we’re still seeing the private sector create jobs, which is consistent with a slow-growing economy.”
