Layoff plans jump 44% to 70,672, Challenger says - MarketWatch

WASHINGTON (MarketWatch) -- Job reduction announcements by major U.S. corporations soared by 44% to 70,672 in April after falling to an eight-month low in March, according to a monthly report released Wednesday by outplacement firm Challenger Gray & Christmas.

Layoff plans were up 18% compared with April 2006. It's the first time since September that layoffs rose on a year-over-year comparison.

The job cuts in April were led by Citigroup (C :

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C53.95, +0.19, +0.4% ) , which announced plans to eliminate 17,000 positions. See archived story. With 33,789 reductions in April, the financial sector has now announced plans to cut 50,221 jobs so far this year, overtaking the auto industry as the top job reducer.

The declining housing market led to 6,000 lost jobs in the financial sector in April, the firm said.

"Coming on the heels of a lower-than-expected [gross domestic product] reading in the first quarter, the April job-cut surge is likely to further increase concerns about the strength of the economy and the job market," said John Challenger, CEO of the outplacement firm, in a statement.

In April, the top industries for job reductions were financial with 33,789, government with 5,643, autos with 4,089, industrial goods with 3,968 and consumer products with 3,391.

The Challenger release comes two days before the national nonfarm payrolls report from the Labor Department. Economists are expecting a relatively weak 100,000 gain in employment. See Economic Calendar.

In a separate report, a survey of worker confidence showed employees growing slightly more uncomfortable about their personal finances. The Hudson employment index, based on interviews with 9,000 workers, fell to 107.5 in April from 109 in March. Workers were also more dissatisfied with their jobs.

The Challenger report covers only a tiny fraction of those who lose their jobs each month.

In February, for instance, a total of 1.2 million workers were discharged from their jobs involuntarily, representing about 0.9% of total employment, according to the latest available data from the Labor Department. By comparison, 2 million people quit their jobs voluntarily in February.

The layoff announcements tracked by Challenger could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements or workers leaving for other jobs, and they could be offset by hiring in other divisions of a company. End of Story

Rex Nutting is Washington bureau chief of MarketWatch.

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