U.S. July Job Cuts Double Year-Earlier Level

Job cuts announced by U.S. employers soared last month, led by reductions at airlines and financial firms, according to a report by a private placement firm. Firing announcements increased to 103,312 last month, up 141% from 42,897 in July 2007, Chicago-based Challenger, Gray & Christmas Inc. said in a statement recently. That's the biggest year- over-year percentage increase since Nov. 2001, at the end of the last official recession. Companies are trimming payrolls as fuel prices increase and the housing slump drags on. The Labor Dept. recently said the U.S. economy lost jobs for a 7th straight month in July and the unemployment rate reached the highest in over 4 years. The CEO of the placement company said in a statement that they have seen job cuts increase in the majority of industries that they track. The downturn, which was isolated to the housing and financial sectors just a few months ago, has spread throughout much of the economy, he said. Companies have announced a total of 579,260 cuts so far this year, up 33% from the 1st seven months of 2007, according to the report. The number of planned job cuts rose 26% last month from 81,755 in June, the report said. The figures aren't adjusted for seasonal effects, so economists prefer to focus on year-over- year changes instead of monthly figures. Transportation companies led industries in announced reductions in July, with 17,051. Financial firms followed with plans to eliminate 15,517 positions, and retail stores, which announced 12,160 cuts.