Planned Job Cuts Surge

A renewed surge of cuts in the energy sector drove Challenger's lay-off count to 45,346 in July, up from a 34,000 average in the prior two months but in line with the prior trend. Layoffs out of energy, which eased off in June and May, surged again, up 17,725 to suggest that the Spring jump in oil prices, which has now faded, did little to boost employment. Computers are second in July's layoff count, at 9,875 for their highest total since April. This report won't be changing expectations for tomorrow's employment report but it does raise the question whether the oil patch, instead of stabilizing, will continue to erode.