U.S. employers planned to cut 40,559 jobs in April, an 11% increase from a year ago, according to the latest report from outplacement firm Challenger, Gray & Christmas Inc.
The April total is also up 7.1% from the 37,880 job cuts announced in March. In April 2011, employers unveiled 36,490 job cuts, last year's lowest monthly total.
"While job gains may indeed hit a lull in the coming months, we do not foresee a sudden upsurge in downsizing activity," said John A. Challenger, the firm's chief executive. "Even with the increased job cuts in consumer products, retail and transportation, the monthly totals remain well below levels that would signal a reversal in the recovery."
The education sector dominated the latest round of layoffs with 9,027 cuts last month, more than double March's total. Challenger noted school districts remain under pressure to cut costs amid massive state and local budget deficits, though year-to-date, the education sector has cut 32% fewer jobs than it did a year ago.
The government sector had the second-highest number of job cuts last month, with 3,100 planned cuts. Year-to-date, the job cuts announced by government agencies are 83% lower than the 52,660 job cuts announced in the first four months of 2011.
For the year, consumer-products firms have announced the highest number of job cuts. The sector has unveiled 20,134 planned job cuts through April, more than triple the number of cuts by this point a year ago. The bulk of the sector's job cuts occurred in February and have since fallen dramatically. Consumer-products companies announced 1,696 job cuts in April.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjo es.com
(END) Dow Jones Newswires
May 03, 2012 08:25 ET (12:25 GMT)
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