U.S. job cuts fell sharply in the second half of the year, raising prospects for a job-market rebound next year, human-resources expert Challenger, Gray & Christmas says.
However, while hiring is expected to accelerate in 2010, unemployment could remain stubbornly high, as millions of Americans who abandoned the job search out of frustration – and, therefore, not counted among the unemployed – reenter the labor pool, Challenger Gray said.
Since the recession began in December 2007, employers have announced nearly 2.5 million job cuts, the firm said.
Job cuts appear to have peaked last January, reaching 241,729, the highest monthly total since January 2002
“The end of the year is typically when we see a surge in layoff activity,” said Challenger Gray CEO John Challenger. “The fact that job cuts continued to decline in the fourth quarter is a good sign that the job market has truly started the recovery process. Unfortunately, the recovery process is slow, so it could be several months or even years before unemployment returns to pre-recession levels,” Â
Â
