Initial Jobless Claims Jump Most In 8 Months As Energy Sector Layoffs Spike Back To 6-Month Highs

Just when you thought (for the 10th time this year) that the worst was over in the US energy space, Challenger Grey reports a massive spike in Energy sector layoffs – to six-month highs. For context, energy sector layoffs are 9 times higher in 2015 than 2014 and Texas – with 103,422 layoffs – is the worst state for job cuts (despite Dallas Fed Fisher’s previous insistence that the state is ‘diversified’). Despite the ongoing side in initial jobless claims, employers have announced 543,935 job cuts in 2015 so far, 31% higher than 2014.

Claims surged 16k in the last week – a 6.15% rise which is the most since February…

Is this the catch up?

It’s not over…

Led by a surge in Texas…

As Challenger concludes, it could be about to get a lot worse…

“Now, we are heading into what has historically been a period of heavy job cutting, even in the strongest economy. The fourth quarter is when many companies make adjustments to operations and payrolls in order to hit year-end earnings goals.”