BUSINESSWEEK ONLINE : JULY 24, 2000 ISSUE
ECONOMIC TRENDS Job Cuts Decline--but So Do Exits Tight labor market holds a surprise Corporate America's downsizing inclinations are waning. Challenger, Gray & Christmas Inc., which keeps tabs on layoff plans, reports that the job cut total in June fell to a mere 17,241, the lowest number in three years and the tenth consecutive month with a reading below its year-earlier level. ''Despite reports of a slowing economy, companies still face severe labor shortages,'' notes a spokesman. An exception is the dot-com sector, whose 2,967 layoffs in June were the most among industries announcing cuts. While employers appear to be rethinking, or at least deferring, their downsizing plans, some dissatisfied employees may be rethinking their own plans to fly the coop. In April, the percentage of the unemployed made up of workers quitting their jobs voluntarily, which normally rises sharply during recoveries, finally climbed into the 15%-plus range it had reached in earlier expansions. But in recent months it has fallen back to 12.1%--suggesting that economic worries may be inhibiting the urge to seek greener pastures. By GENE KORETZ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Job Cuts Decline--but So Do Exits CHART: Pink Slippage INTERACT E-Mail to Business Week Online

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