Report: I.T. Sector Had Most Job Cuts in August

By Baselinemag  |  Posted 2006-09-05 Print this article Print

Computer companies led the layoff pack with 17,371 announced job cuts in August, according to recruiting firm Challenger, Gray & Christmas. Still, the industry is off 2005's pace.

Computer companies led the layoff pack in August with 17,371 announced job cuts, according to recruiting firm Challenger, Gray & Christmas. Still, the industry is off 2005's pace.

Total job cuts announced by companies in all sectors spiked in August, to 65,278, up 76% from a six-year low of 37,178 in July, the firm said in its monthly report.

The computer sector led all industries with 17,371 job cuts in August, compared with 7,238 announced layoffs in August 2005. The automotive industry was in second place for August 2006, with 7,639 job cuts.

For the year to date, though, the tech sector isn't shrinking as fast as it did last year. Through August 2006 computer companies had announced 50,253 layoffs, down 18% from the 61,361 job cuts the industry announced through August 2005.

While employers have announced 538,914 job cuts this year, that's 24.3% fewer than the 711,816 cuts announced through August 2005. But John A. Challenger, CEO of Challenger, Gray & Christmas, notes that fewer jobs are being created.

"Downsizing is well off the pace we have seen in recent years, indicating that the job market is strong in terms of providing more job security," he said, in a press release. But, he adds, "companies simply are not hiring despite the healthy economy."


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