US job cut announcements drop again in June, Challenger says

3rd Jul 2024 15:10

(Sharecast News) - Job cut announcements appeared to repeat the pattern observed in 2023, dropping quickly in June, the results of a closely followed survey revealed.

But they were expected to pick up again.

According to Challenger, Gray & Christmas, US companies announced 48,786 job cuts last month, for a 23.6% decline month-on-month.

"June is typically a low month for job cut announcements, as most companies are midyear or at the end of their fiscal years. The months following fiscal year ends tend to have a spike in cuts, as those plans are implemented," said Andrew Challenger, senior vice president and workplace expert for Challenger, Gray & Christmas, Inc..

"Over the last decade, job cuts have primarily been announced during the first half of the year. Prior to 2013, major announcements would bookend the year."

Nonetheless, last month's tally was 19.8% higher than in the same month one year before.

It was also the highest June total since the 170,219 cuts unveiled during that same month in 2020 and the most for a month of June, when 2020 is excluded, since 2009.

June was the third month year-to-date during which job cuts had risen past their year earlier level, yet at 434,645 they were 5.1% lower overall when compared with the first six months of 2023.

By sectors, consumer products manufacturers announced the most job reductions with 5,311, followed by 4,647 among technology companies.

Going the other way, employers announced their intention to take on 19,087 workers in June, the second best monthly result thus far for 2024, for a year-to-date total of 69,920.

Yet that was also the lowest number of hires planned for any first half of a year since the 76,751 recorded in 2016.