The recession has been particularly tough for pharmaceutical-industry employees. During the first five months of 2009, 51,034 of them lost their jobs. Only the government and retail sectors laid off more workers during that period. Given these somber figures, many in the industry probably hoped for a positive omen in the US Bureau of Labor Statistics’s monthly jobs report, which was released on Friday.

Unfortunately, hope did not seem to be forthcoming. Although 431,000 jobs were added in May 2010, 411,000 of them were temporary positions with the US Census. Total private employment rose by 41,000 jobs, a small increase over the April level.

The picture becomes more positive if we examine the number of planned job cuts. So far this year, the pharmaceutical industry has shed 34,157 jobs, according to a new report by Challenger, Gray, and Christmas. That figure is only about 67% of the 51,034 jobs the industry cut during the same period in 2009.

Taken together with similar declines in other sectors, the drug industry’s decrease in job cuts is further evidence that job cuts have returned to prerecession levels, said John A. Challenger, chief executive officer of Challenger, Gray, and Christmas, in a statement accompanying the report. Challenger noted that the economy is still fragile, despite the nascent recovery, but indicated that job cuts could decrease further during the summer, which traditionally is the slowest period for downsizing.

I think the industry has reason for optimism. The slowed pace of pharmaceutical job cuts may indicate that the industry is finding its footing again. Let’s hope that drugmakers’ prospects continue to brighten throughout the summer months. By year’s end, it would be satisfying to point to this period as the beginning of the industry’s comeback.

[orig. published June 7, 2010]