CHICAGO, April 2 (UPI) -- U.S. businesses announced 20 percent fewer job cuts in March than in February, according to international outplacement firm Challenger, Gray & Christmas Tuesday, but the decline may not signal a quicker economic recovery.
The Chicago-based firm, which tracks job losses on a daily basis, said 102,315 job cuts were announced last month compared to 128,115 in February. Last month's toll was 37 percent lower than the 162,867 cuts in March 2001 and the lowest since last May, when 80,140 pink slips went out to employees.
While a decline in job losses may be good news for jobseekers, 443,134 jobs disappeared in the first quarter of 2002, up 9 percent from the same period a year ago.
The 102,315 job cuts announced last month was higher than the monthly average for every year since 1989 when the firm began tracking job loss announcements in corporate America.
"Certainly, the drop from nearly 250,000 job cuts last September is welcome relief, but the March figure is still 133 percent higher than the monthly average job-cut figure of 43,970 in 1991 and 1992 -- during the last recession," said chief executive officer John A. Challenger.
Retail businesses announced 22,760 planned reductions, followed by telecommunications with 21,831 lost jobs and consumer products with 11,025 cuts.
"If a recovery is indeed underway, it is doubtful that it will be felt by all sectors simultaneously," said Challenger. "Certain industries will continue to struggle. Even with a full-blown recovery, job cuts could escalate as companies increase investment in productivity-enhancing technology, which will require fewer people to do the same amount of work."
