Challenger Job-Cut Report

DEFINITION of 'Challenger Job-Cut Report'

A report, released monthly, that provides information on the number of announced corporate layoffs. The Challenger Job-Cut Report is produced by Challenger, Grey & Christmas and tracks layoffs by industry and region. The report is an indicator used by investors to determine the strength of the labor market.

BREAKING DOWN 'Challenger Job-Cut Report'

It is important to note that although the Challenger Job-Cut Report could be used as a leading indicator for new jobless claims, not all layoff announcements result in job losses in the near term. Some companies will announce layoffs that will take place further into the future. In a situation such as this, people may quit voluntarily or the company's situation may change in order to keep their employees. The report is broken down by industry, which is valuable to provide insight into these trends that will likely affect prices of stocks in each of the industries.