The pace of downsizing remained virtually unchanged in May, as employers nationwide announced plans to cut 37,135 positions from their payrolls during the month. That figure is just 1.8 percent more than the 36,490 job cuts announced in April, according to a report released this morning by global outplacement firm Challenger, Gray & Christmas Inc.

The May total was also about the same as a year ago, declining just 4.3 percent from the 38,810 job cuts announced in May 2010. May marks the third time this year and the tenth time in the last 14 months that announced job cuts totaled less than 40,000.
Employers have now announced 204,374 job cuts in 2011, 21 percent fewer than the 258,319 planned layoffs reported in the first five months of 2010.

The government and nonprofit sector continues to dominate monthly job-cut announcements, with these employers reporting 14,755 in May or nearly 40 percent of all job cuts announced during the month.  The May total was up 37 percent from April’s 10,371, but 11.6 percent lower than the 16,697 government job cuts announced in May 2010.  Since January 2009, the government and nonprofit sector has announced 380,523 job cuts.

“Despite several signs of weakness in the recovery, the continued slow pace of downsizing outside of the government sector suggests that employers do not see these as long-term problems,” said John Challenger, the firm’s CEO. “Most employers realize that these types of ups and downs are typical during recoveries.  So, it is unlikely that we will see a sudden resurgence in corporate downsizing in the months ahead unless there is a major shock to the economy.”