ECONOMIC DATA ANALYSIS

Challenger Layoffs (July)

• Challenger reported that the rate of layoff announcements was little changed in July with 41,676 job cuts
announced versus 39,358 in June. Layoff announcements in July 2010 were 57.2% below July 2009’s
level (the data are not seasonally adjusted).

• Job cut announcements were led by the government, financial, and telecommunications sectors.

3-mo 12-mo
Jul Jun May ago ago

Total Layoffs 41,676 39,358 38,810 38,326 97,373

Automotive 1,074 438 17 1,298 2,716
Aerospace 2,281 954 1,329 1,177 3,011
Computers & Electronics 1,776 9,611 495 1,721 3,027
Construction 1,132 72 62 709 1,234
Consumer goods 1,424 2,050 511 421 1,094
Financial 5,498 470 2,363 3,551 5,030
Food 2,429 1,194 613 579 1,300
Government 7,193 5,306 16,697 14,973 7,131
Health care 2,694 1,789 740 4,567 1,726
Industrial Goods 2,362 1,463 409 343 6,548
Retail 812 4,306 608 899 2,654
Services 1,411 2,279 515 877 980
Telecommunications 1,199 748 202 260 17,601
Transportation 5,331 3,672 3,262 1,774 27,954

BOTTOM LINE: Another low reading on layoff announcements—in the first seven months of 2010, layoff
announcements totaled 339,353, a 65.9% decline from the first seven months of 2009.

Challenger Layoff Announcements Challenger Layoffs: Financial

thousands 12-month moving sum, thousands

250 250 24 24

20 20
200 200

16 16
150 150

12 12
100 100
8 8

50 50
4 4

0 0 0 0
00 01 02 03 04 05 06 07 08 09 10 00 01 02 03 04 05 06 07 08 09 10
Source: Challenger, Gray & Christmas, Inc. /Haver Analytics Source: Haver Analytics

John Ryding Conrad DeQuadros

ryding@rdqeconomics.com dequadros@rdqeconomics.com
(212) 584-3881 (212) 584-3882
August 4, 2010
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