Chicago, IL, Dec. 26—The U.S. is on pace to record more job losses in 2001 than it has in at least nine years, according to the job placement firm Challenger, Gray & Christmas. Since the terrorist attacks on September 11, U.S. companies have announced 624,411 job cuts, more than the 12 month totals for every year from 1993 to 1997. 

Through the end of November, companies had announced close to 1.8 million job cuts for the year, nearly three times more than were announced last year, and the largest number since Challenger began tabulating such figures in 1993.

“This year the downsizing just dwarfs anything we've seen before” John Challenger, chief executive officer of the company that tracks employment trends, said.

The worst year prior to 2001 was 1998, when 677,795 job cuts were announced.

The job losses cut across three significant economic sectors: manufacturing/industrial, high technology and travel. Challenger compiles figures from job cut announcements and does not count actual job losses, which can come from firings, early retirements and attrition. The telecommunications industry led the way with 292,756 planned cuts through November.

Besides the struggling economy and the September 11 attacks, Challenger pointed to two other trends that seem to have led to more layoffs: an increase in mergers in recent years and a frenzy of overhiring that occurred as the economy soared in the mid to late 1990s. Challenger said he has also been struck by the fact that even industry leading companies are now downsizing.

Copyright 2001 Floor Focus Inc