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Challenger, Gray & Christmas CEO John Challenger weighs in on job cuts in April.
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Old weekly jobless claims -- -- point 7000 to their lowest level in a month and yet conversely job cuts are on the rise challenger gray and Christmas.
-- that -- -- April survey of company downsizing John Challenger joins me now from Chicago.
Details tell us some of the numbers about job cuts in April.
High -- yes we saw just over 40000 job cuts announced by US companies in April that was up 7%.
From what we saw in March up 11% from from what we saw in April a year ago.
Year ago especially bad and terms of sectors -- look at a chart here and I realized.
Maybe it's not such bad news is a lot of job cuts -- in government on that there's education government have healthcare so loser come related baby -- a good thing not a bad thing.
Well that no question and that education.
Was an area that saw the heaviest cuts.
This month over 9000 were announced.
And certainly we know.
That state and local governments.
-- -- big deficits are having to cut back.
On their education programs -- does mean job losses.
Do we think that the job cuts are more because the economy is not about selling -- stuff.
Or is there a portion of their.
Well it certainly could be on both of those factors the economy's not growing.
Very quickly 2.2 percent GDP growth.
As long as productivity.
Stays at a similar level that two to 3% level.
-- companies just don't need to hire as many people so we've got that going on the economy.
Companies are responding to their demand as they see more demand for their goods and services.
They add jobs.
What do you think we are in this economic recovery now given the 27000.
Decline in weekly jobless claims out this morning.
Well we'll see we've seen some.
Over the last month some relatively.
Not very positive.
Jobs numbers after some really quite strong job growth from September through February.
The solid job creation numbers fall back in March -- -- a spate of other relatively.
Negative reports compared to where we thought we might be.
Are concerned that maybe with a string things are slowing down but this this job -- -- today as a positive one.
But can you talk about the sectors education government where -- job cuts happen -- -- regionally in the US.
Who's taken at worst.
Well so far this year Texas has seen the heaviest number of cuts in terms of downsizing.
And -- month.
April was the west region that saw the -- -- cuts but they were fairly.
Evenly distributed around the country.
-- and where RD of what do you think we are an economic recovery here probably 60% -- -- -- wanna be probably 50% 70%.
Well from a job standpoint we've got a long way to go.
We lost about nine million jobs in the recession.
We've got about four million of those back that's still five million jobs fewer.
That where we weren't yet GDP right now is a blow.
What it was we went into the recession so there's a lot of change still of growth that has to happen.
Two.
Put those people back to work tonight to jobless semi recovery thank you John Challenger -- -- -- today.
Thank you Texas -- talking.
