Challenger Reports Job Cuts Increased Modestly Month-Over-Month in May 2021

According to the latest released (6-3-21), Job-Cut Report from Challenger, Gray & Christmas (CG&C), Inc — a global outplacement and business and executive coaching firm — U.S. based companies announced planned job cuts announced by U.S.-based employers rose 7% in May to 24,586 from the 22,913 announced in April. Last month’s total is down 93.8% from May 2020, when employers announced 397,016 cuts. So far this year, employers have announced plans to cut 192,185 jobs from their payrolls, down -86% from the 1,414,828 jobs eliminated through the same period last year. In comments prepared for the release of the report, Andrew Challenger, Senior Vice President of CG&C said, “Many employers, especially those hit hard during the pandemic, such as Retailers and Hospitality and Leisure companies, are having a difficult time finding workers. Many are offering signing bonuses or higher wages to attract workers.” Challenger added, “As the labor market tightens, as is typical, workers may find employers offering more attractive perks and benefits, including higher starting wages, as they look for positions.”