Layoffs Fall to Lowest Level in 9 Months

Layoffs in the United States fell in March to the lowest level in nine months, although companies remained reluctant to hire people, according to a report released Tuesday.

Planned job cuts decreased to 68,034 in March compared with 77,250 in February, the outplacement firm Challenger, Gray & Christmas Inc. said. The firm’s 12-month moving average, which smooths out month-to-month volatility, fell to 95,289 in March from 96,736 in February.

“The heavy job cutting we have seen over the past three years appears to be trending down,” said John Challenger, the firm’s chief executive, in a statement. “However, the job market seems to be in a state of limbo where companies are eager to hold on to the people they have but many are reluctant to create any new jobs.”

One reason given for the reluctance to hire was that most companies would rather keep older and more experienced workers than invest in the training of new ones.

Noting that the economy remains at a vulnerable point, Challenger said: “Employers know they are far better off with a seasoned, senior staff versus the cost of acquiring and training replacements in a period when the customer is king.”

The belt tightening on Wall Street that followed the recent recession continued last month, as the financial services industry led all others with 16,120 job cuts. The telecommunications industry was a distant second, with 9,823 layoffs.

The report said total planned layoffs in the first quarter of 2004 fell to 262,840 compared with the fourth quarter of last year when 364,346 cuts were announced.