Reply #14: US Aug layoffs surge, housing slowdown cited

[UpInArms]

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-09-05T113832Z_01_N05230969_RTRIDST_0_ECONOMY-LAYOFFS-CHALLENGER-UPDATE-1.XML

NEW YORK, Sept 5 (Reuters) - Planned U.S. layoffs surged 76 percent in August compared with the previous month amid signs that a slowdown in housing was starting to have an impact on employment, an independent report showed on Tuesday.

Announced layoffs in August totaled 65,278 jobs, compared with a six-year low of 37,178 in July, according to Challenger, Gray & Christmas Inc., an employment consulting firm. It was the only second time this year that monthly job cuts have increased.

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"There are some signs that the housing slowdown is taking a toll on jobs," said John A. Challenger, chief executive of Challenger, Gray & Christmas.

"Job-cutting in real estate this year is nearly double last year. However, we have not as yet seen a major uptick in job cuts in the sectors we might expect during a significant slowdown. The housing slowdown has not had a major impact on the job market, yet."

The report said the surge in planned layoffs might also be a signal of an early start to year-end cuts as companies start implementing 2007 payrolls plans.

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