Company Layoff Announcements
Company Layoff Announcements Market Sensitivity: Low Mean cashbackforexbtcg: Layoff stat forexcashbackcalculatortics for public company announcements Home Page URL: www.challengergray.com (data requires subscripti Eastforexcashback) Release Time: 7:30 a.m. (EST)); Generally released one week after the end of the corresponding month Frequency: Once a month Source: Chalinger, Gray & Chrismas, Inc. (CGC) Revisions: No revisions to previously published data Why it matters Since the 1980s, there cashback forex been a succession of merger waves of plant closings, reorganizations, East forex cashback consolidations, the kind of changes that can only be seen in an open, competitive, and dynamic economy But all of this activity has had a painful byproduct in the form of large numbers of unemployed displaced workers taking weeks, months, or even longer to The resulting loss of income will lead to a deterioration in household finances and a sharp reduction in consumer spending even those still in their former positions will feel uncomfortable for fear of losing their jobs such a widely spread uncertainty and stress depresses consumers, and if this mindset exists on a large scale, layoffs drag the economy into recession therefore if you want to predict So if you want to predict changes in economic performance, it is helpful to monitor company layoff trends (since May 2004, the firm has also been tracking job announcements). (Since May 2004, this company has also been tracking job announcements.) However, people do not have free Internet access to Challengers unemployment reports, and CGCs paying customers are the first to receive the data, which are released in the first week of the corresponding month. How to calculate a large selection of sources, including news bulletins, news-based newspapers, and specialty newspapers, collect the layoff data published in these sources and then add them up Their research covers publicly traded companies, but also includes some large private companies whenever possible The report focuses on comparative data on a month-to-month basis and on the number of layoffs from the previous year while also being organized by industry and region There is no table to view here for clues about the future direction of the economy, as Challenger does not allow access to those who do not subscribe to it, but the highlights of the report are available to the media and will be covered in sufficient space. In general, the unemployment figures have shown only limited interest from the investment community and economists because, first, they are not new and are based on company announcements made several weeks ago. Second, several other publicly released unemployment indicators are thought to be more informative, including weekly jobless claims, the U.S. Department of Labors own mass layoff statistics, and employment situation reports. Another problem is that the way the Challenger report categorizes layoffs by geographic area is based primarily on the location of corporate headquarters, so many of these layoffs occur elsewhere, even outside the U.S. The main question is whether the number of layoff announcements can be used as a leading indicator of economic turning points? The answer is probably no. Since the 1980s, job cuts have been an enduring part of U.S. business operations, and there can be significant layoffs at any stage of the economic cycle. Just look at the last decade: Not only do we find companies firing workers during the recession of the early 1990s, but we also find significant cuts in the years of strong economic growth later in the same decade. The number of people on the payrolls market impact When news of slow growth became popular, investors might have taken some notes on the Challenger report otherwise, people would have ignored its impact on the market bonds In theory, the unexpectedly large rise in layoffs in this country could be interpreted as a bullish signal for the fixed income market massive cuts in the workforce would reinforce the notion that an economic downturn was coming However, the number of layoffs has been quite large for more than a decade and has little to do with the economic cycle. More importantly, the Challenger report is based on data that is already out of date, and nine times out of ten, the market has already taken this information into account.