Job cuts in US surge by 193 percent last month, with total of 75,891 layoffs
(MENAFN) In August, job cuts in the US surged by 193 percent compared to July, with employers announcing a total of 75,891 layoffs, up from 25,885 the previous month, according to a report from Challenger, Gray & Christmas. This marked the highest number of job cuts for August since 2009, excluding August 2020 when layoffs peaked at 76,456. The significant increase in job cuts reflects a growing sense of economic uncertainty and shifting market dynamics, as companies navigate rising operational costs and potential economic slowdowns.
Andrew Challenger, senior vice president at Challenger, Gray & Christmas, highlighted that the surge in layoffs is indicative of the various pressures companies are facing. These pressures, including rising costs and concerns about economic stability, are leading businesses to make difficult decisions about their workforce. This trend mirrors challenges from the previous year, suggesting ongoing difficulties in labor management and decision-making amidst a volatile economic environment.
The tech sector was notably impacted in August, recording the highest number of job cuts in 20 months. The industry announced 39,563 layoffs for the month, bringing the total for the year to 105,426. This shift reflects a broader move within the tech sector from a focus on growth and innovation to prioritizing profitability and efficiency. The rise in job cuts is also driven by the adoption of AI and automation, which is impacting roles across various functions within the industry. Despite these cuts, the demand for skilled tech professionals remains high, though job placement may be slower due to the current hiring environment.
Furthermore, hiring plans have dropped to their lowest levels since Challenger, Gray & Christmas began tracking them in 2005. Through August, only 79,697 hiring plans were announced, a significant decrease of 41 percent from the 135,980 plans reported during the same period last year. This downturn in hiring plans mirrors the slow hiring pace of 2008, a year marked by the global financial crisis. The current hiring slowdown highlights the cautious approach employers are taking in response to ongoing economic uncertainties and labor market challenges.
MENAFN08092024000045015839ID1108648709
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.