Investing February 5, 2002

Job Cut Announcements Skyrocket

February 5, 2002 (PLANSPONSOR.com) - US job cuts announced in January skyrocketed 32% compared to December, even as the Department of Labor (DoL) released figures showing the unemployment rate dipping.
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In January companies announced plans to fire 212,704 people, up from December’s figure of 161,584, according to outplacement firm Challenger, Gray & Christmas. The January figure is the third largest since Challenger started its survey in 1993.

However, the most recent unemployment report from the DoL showed the rate dropping by 0.2% to 5.6% in January, down from December’s six-year high (see Unemployment Down to 5.6% ).

The fall, the first in eight months, brings the unemployment rate to its lowest level since before September’s terrorist attacks accelerated its ascent.

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