Planned layoffs slow in April

By Charles Riley, staff reporterMay 4, 2011: 7:52 AM ET

NEW YORK (CNNMoney) — Employers announced fewer planned job cuts in April, even as government sector layoffs mounted, according to a report released Wednesday.

The number of jobs cut fell 12% to 36,490 from March’s 41,528, according to outplacement consulting firm Challenger, Gray & Christmas. Year over year, job cuts dropped 5% from 38,326 in April 2010.

April’s number is the lowest so far this year, and the third lowest over the last 16 months.

“The slow pace of downsizing suggests employers remain optimistic about business conditions going forward, despite higher energy costs, government deficits and slipping confidence among consumers,” said John Challenger, CEO of Challenger, Gray & Christmas.

Despite the slow pace of layoffs in the economy at large, the government and non-profit sector was hit hard by job losses.

Government positions dominated planned job cuts, accounting for 10,731 job cuts last month, bringing the four-month total to 52,660.

“The weak link in the job market right now is the government sector, which continues to shed employees at a heavy rate,” Challenger said. “Most of cuts tracked this year were concentrated in the state and local agencies.”

The Challenger report — along with an additional report from ADP — typically set the tone for the government’s highly anticipated monthly employment data.

Ahead of the jobs report, 22 economists surveyed by CNNMoney are predicting the economy added 193,000 jobs in April, while the unemployment rate held steady at 8.8%.

For the full year, the same economists predict job growth of just under 200,000 a month, and an 8.4% unemployment rate by the end of the year. 

First Published: May 4, 2011: 7:30 AM ET