U.S. planned layoffs fall for third month in Oct

NEW YORK, Nov 4 (Reuters) - Planned layoffs at U.S. firms
fell for a third straight month in October to a 19-month low,
feeding hopes the labor market will continue to improve as
economic activity rebounds.

Planned job cuts announced by U.S. employers fell to 55,679
in October, down 16 percent from 66,404 in September, according
to a report released on Wednesday by global outplacement
consultancy Challenger, Gray & Christmas, Inc.

The October job cuts were the lowest since March 2008, when
employers said they would shed 53,579 workers, and the October
numbers are 51 percent below the year-ago announced layoffs.

For the year through October, announced job cuts are up 36
percent from the prior-year period, at 1.19 million. The total
announced layoffs this year are just 31,406 shy of last year's
total of 1.22 million.

John Challenger, chief executive of Challenger, Gray,
cautioned that the employment market recovery will not be as
swift as its fall.

"Companies will, at first, be very cautious not to
over-hire, in case this recovery is not sustainable. Even when
the pace of job creation accelerates, it simply will take a lot
of time to reabsorb all of these displaced workers," he said in
a statement.

Planned layoffs in October were driven by the automobile
industry, with 13,420 announced layoffs. The sector, with a
total of 164,440 planned layoffs this year, may see more
downsizing in 2009, the report said.

Government and non-profit entities rank second in
year-to-date payroll reductions, with announced layoffs of
160,434 workers. The sector is poised for more cuts as many
state and local governments grapple with hefty budget
deficits.
(Reporting by Camille Drummond; Editing by Leslie Adler)