Tags: Challenger | job cuts | oil prices | workers

Challenger Report: Job Cuts Soared 63 Percent in January

By    |   Thursday, 05 February 2015 02:25 PM

While economists expect government data Friday to show that non-farm payrolls grew 230,000 last month, Challenger, Gray & Christmas' monthly report on job cuts wasn't so rosy.

Announcements of planned layoffs soared 63 percent in January to 53,041 from 32,640 in December. The January total was the highest since February 2013 and represents an 18 percent increase from 45,107 a year ago.

A total of 40 percent of the January layoffs were related to oil.

"We may see oil-related job cuts extend well beyond those industries directly involved with exploration and extraction," John Challenger, CEO of Challenger, Gray, said in a statement.

"The economies throughout the northern United States that have been thriving as a result of the oil boom could experience a steep decline in employment across all sectors."

To be sure, some industries throughout the country will benefit from falling energy prices, Challenger noted. Airlines, trucking companies, plastics manufacturers and paint makers already are benefiting.

Star CNBC commentator Larry Kudlow sees the economy as a whole reaping plenty of rewards from the plunge of oil prices to 5 ½-year lows.

"This is a gigantic tax cut for the American economy," he told "The Steve Malzberg Show" on Newsmax TV.

"It's not a marginal tax rate reduction, I'm just saying it has the same impact. People will have much more disposable income to spend on other goods and services, and the middle class needs that because they've not had big wage gains."

The oil price drop will be a boon for corporate America too, said the host of "The Larry Kudlow (radio) Show."

"Businesses need this," he argued. "Manufacturing companies and retailers and everybody else, they all have fuel costs, they all have heating costs."

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While economists expect government data Friday to show that non-farm payrolls grew 230,000 last month, Challenger, Gray & Christmas' monthly report on job cuts wasn't so rosy.
Challenger, job cuts, oil prices, workers
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2015-25-05
Thursday, 05 February 2015 02:25 PM
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