Fewer layoffs, more hiring seen this summer

With downsizing and gasoline prices on the decline, workers may be more willing and able to use additional paid leave this summer, according to Chicago-based Challenger, Gray & Christmas Inc.

Increased travel this summer will boost consumer spending in tourist destinations, which will lead to increased hiring among hotels, restaurants, shops and amusement venues.

Challenger data shows a dramatic decline in job cuts. Through the first quarter, employers announced plans to cut 181,183 jobs, 69 percent fewer than the 578,510 layoffs announced in the first quarter of 2009.

The first-quarter total was, in fact, the lowest first quarter total since 2000. The declining pace of downsizing continued in April, as monthly job cuts dropped to 38,326, the lowest since July 2006.