Recent numbers indicate that job cuts in the technology sector, one that has been hit hard by the current economy, are beginning to decrease.
The latest report on technology sector job cuts from Challenger, Gray & Christmas, Inc. found that job cuts announced by firms in that sector saw a significant decline during Q2. The number of jobs lost during this time was almost equal to the 33,644 jobs lost during the same time last year.
A total of 33,891 jobs were cut in the computer, electronics and telecommunications industries. This is a decrease of 60 percent from Q1, when 84,217 jobs were cut, the most since Q4 2002.
The computer industry saw the largest number of job cuts, with 19,881 announced layoffs. However, this is still 37 percent fewer cuts than the 31,580 layoffs during Q1. The electronics industry lost 12,134 jobs, a decrease from the 33,665 jobs cut during Q1. The telecommunications industry only lost 1,876 jobs, down from the 18,972 jobs cut during Q1.
A total of 118,108 jobs have been cut in the technology sector during the first half of this year, which is the largest six-month total in seven years. That number also is more than double the 50,989 job cuts announced from January to June 2008.
“Telecom and electronics firms appear to be benefiting from a recession-defying wireless market,” John A. Challenger, CEO of Challenger, Gray & Christmas, said. “Between the companies trying to outdo the iPhone and those helping more and more Americans disconnect their land lines for cellular-only phone communications, there are a lot of growth opportunities.
“Computer firms may lag a little as companies wait for more proof of recovery before they begin to reignite investments in new technologies, but the end of the recession should bring a flood of new spending in this area,” he added. “Some firms may even begin to invest early, in the hopes that productivity-enhancing technology can temper the need to recruit new workers.”
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