Job reductions soar 42% in May

[notiCIas]

Job reductions soar 42% in May

Report: Computer firms lead the announced employment cuts, followed by transportation industry.

June 2, 2005: 10:23 AM EDT


NEW YORK (CNN/Money) - Planned job cuts announced by employers soared 42 percent in May after hitting a five-year low in April, an employment firm said Thursday.

Employers planned to cut 82,283 jobs in May, compared to 57,861 the previous month, according to a monthly job-cut report issued by Challenger, Gray & Christmas.

Job reductions in computer companies, which announced 17,886 cuts last month, or about one-fifth of the monthly total, led the surge.

The transportation industry ranked second with 7,339 announced job cuts.

The report noted that employers appear to be retaining their workers, but seem reluctant to add new workers. Job creation, while improving, is still well below the pace of previous recoveries, it said.