U.S. job cuts rose to a six-month high in August, as some managers remained concerned about the economy’s susceptibility to shocks, but hirings also increased by nearly five-fold last month, a report said on Tuesday.
Employment consulting firm Challenger, Gray & Christmas Inc. said employers announced 74,150 layoffs in August, up 6.6 percent from 69,572 in July.
However, hiring plans increased in August to 132,105 from 26,880 in July, with the most hiring announcements made by retailers. Hiring in the retail sector normally picks up in late summer as companies gear up for the holiday season, the report noted.
Yet, many of the retail jobs added over the next few months may disappear by the end of the holiday season next February, said John Challenger, chief executive of the firm.
“There is undoubtedly a lot of concern about the fragile state of this recovery and the fact that it could be easily derailed by a sudden and significant shock, such as a terrorist attack or a major disruption to the country’s oil supply,” he said.
Last week, the government reported that the economy generated 144,000 new non-farm jobs in August, slightly fewer than economists had predicted. June and July job creation was revised higher by a total of 59,000.
