As the economy continues its slow crawl toward recovery, the upcoming Labor Day holiday (September 7) could mark a turning point in a job market that has reached one of its lowest points in decades, with more than 14 million Americans unemployed and another six million who have abandoned their job search out of frustration.
Labor Day often kicks off the heaviest downsizing periods of the year. However, an analysis of layoff trends by global outplacement firm Challenger, Gray & Christmas, Inc. indicates that the heaviest job-cutting of the year may have occurred in the opening months of 2009, when recession-related downsizing appears to have reached its peak.
ìWe see more and more signs that the economy is beginning to turn around. While it is too soon to expect a massive hiring binge that will move some of the nearly 20 million jobless Americans back onto payrolls, the pace of job cuts is likely to continue its downward trend,î said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
In January, employers announced plans to cut 241,749 jobs, according to Challenger, Gray & Christmas, which has tracked planned layoff announcements daily since 1993. That was highest monthly job-cut figure since a record-total of 248,475 was reached in January 2002. However, after reaching the January peak, job cuts declined in each of the five months that followed.
Overall, job cuts announced between January and April totaled 711,100, which the largest total for that four-month period on record. While August job cuts are still being tabulated, with 282,948 job cuts announced from May through July, it is clear that the four-month period ending this month will see significantly fewer job cuts than the previous four months.
ìYear-end job cuts are likely to increase from the levels recorded during the summer months, which typically see fewer job cuts, but we will probably not return to the levels reached between January and April. Job cuts are expected to continue the overall downward trend in 2010, when we might actually begin to see some small improvements in hiring,î said Challenger.
ìRegardless of how well the economy is doing, the end of the year is always a precarious time for workers as companies scramble to meet annual earnings goals. At the same time, they are making decisions about the coming yearís budget, expansion plans, etc. All of these factors help determine staffing levels – whether to add workers, eliminate workers or both,î said Challenger.
What do you do if you are among those at risk of job loss in the closing months of the year?
Challenger sees Labor Day as the start of the New Year in the workplace and a great time for workers to evaluate their job situation and make ìNew Yearísî resolutions tied to keeping their jobs or finding new ones.
ìThe most important thing you can do if you suspect that your job is at risk is to not sit around and simply wait for the shoe to drop. Take action now to either improve your standing in your current position or take steps to find a new position. The worst thing you can do is take a wait-and-see approach,î said Challenger.
ìUnless your company goes out of business, it is possible to keep your job, but you have to demonstrate that your presence is essential to the continued survival of the company. This is not a time to be shy about tooting your own horn.
ìFor those who prefer to abandon the sinking ship, the first step is to shore up and expand your professional network. Start reaching out to people you have met through industry meetings or professional associations and let them know that you are interested in new opportunities.
Heaviest job cuts are behind us'
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