U.S. planned job cuts fell in January

U.S. planned job cuts dropped by 15 percent in January and below the 100,000 level for the first time since August 2004, a report said on Tuesday.

Employment consulting firm Challenger, Gray & Christmas Inc. said employers announced 92,351 layoffs in January, down from 109,045 in December.

The January total planned job cuts were the lowest since August 2004, when planned cuts totaled 74,150. January also marked the largest hiring month since August 2004, with employers planning on hiring 29,832 people last month, up from 21,262 in December.

The lower number of planned cuts in January are atypical of the month’s usual job cut activity and, but according to Challenger, some sectors of the the U.S. workforce may face rising job cuts in coming months.

“Merger/acquisition activity was the second leading cause of job cuts last month, behind cost-cutting. It will continue to be among the top job-cut reasons this year as an improving economy and increased competition force industry consolidation,” John A. Challenger, chief executive officer of Challenger, Gray & Christmas said in a release.

Employers in the telecom sector announced 1,429 job cuts in January, and are expected to announce more in the coming months due several major mergers.

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Cuts the government/non-profit, financial services, and automotive industries comprised more than one-third of the planned January job cuts.

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Challenger said employers in the health care, biotechnology, and manufacturing industries may soon jump on the job-cut bandwagon.

On Friday, the government will report on the U.S. employment situation in January. Economists polled by Reuters forecast a 190,000 rise in non-farm payrolls January compared with a 157,000 rise in December.