Planned Job Cuts Rise 15% in June

The number of planned job cuts by U.S. businesses rose 15% in June from a year ago, according to the employment firm Challenger, Gray & Christmas. Businesses announced plans to cut 63,397 jobs last month, which was also 15% higher than the 55,231 in May, according to the monthly survey by the Chicago-based employment firm. “The corporate focus on cost controls, the success with outsourcing, has kept workers off guard and has stifled the inclination to seek more pay,” said Rick Cobb, vice president of Challenger, Gray & Christmas. Last month marked the 15th month in a row that job cuts have been higher than the same month in the previous year. So far this year, employers announced they would cut 383,548 jobs, 42% more than during the first six months of last year, the report said. That puts the total number at the highest level in 10 years, the report said. Recent government figures point to a solid job market. Last week, the Labor Department reported companies hired 268,000 workers in June. At the same time, the nation’s unemployment rate last month rose to 4.3% from a 29-year low of 4.2% in May. The Challenger report collates job cut announcements; it does not track actual layoffs.