By Maria Armental
Steep spending cuts in the energy sector and Target Corp.'s
(TGT) mass layoffs as it closed its Canadian operations drove
midyear job cuts to the highest level since 2010, according to data
tracked by outplacement firm Challenger, Gray & Christmas.
Overall, employers announced 287,672 job cuts through June, up
17% from the year-ago period, Challenger said.
Meanwhile, employers have stepped up hiring, bolstered by a
rebounding automotive industry. Through June, employers had
announced 67,432 hires, compared with 61,042 for the year-ago
period.
Overall, the Labor Department has said, the number of job
openings rose in April to the highest level on record.
Challenger's report says the largest number of job
cuts--86,978--were attributed to restructuring while lower oil
prices were blamed for 69,582 job cuts.
The roughly 17,000 job cuts at Target because of its Canadian
closures drove retail to the second highest level of cuts, with
45,230 announced, up 68% from the year-ago period.
"Retailers should be enjoying the benefits of falling oil
prices, as consumers have the money they are saving at the gas pump
to spend elsewhere," Challenger Chief Executive John A. Challenger
said. "However, it appears that consumers were hoarding that
cash."
The most recent data, however, suggests that consumers are
starting to loosen up the purse strings, Mr. Challenger said.
The Commerce Department reported last week that consumer
spending rose 0.9% in May, up from a 0.1% increase in April. May's
increase was the largest monthly jump since August 2009, according
to government figures.
Mr. Challenger said the pace of downsizing should slow in the
second half of the year as consumers start to spend more and oil
prices stabilize.
Write to Maria Armental at maria.armental@wsj.com
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