US layoff announcements surge in August, hiring plans at record low

5th Sep 2024 11:52

(Sharecast News) - There was a surge in layoff announcements at US companies last month, while hiring plans were at their lowest ebb ever recorded, the results of a survey revealed.

According to Challenger, Gray & Christmas, US companies made 75,891 job cut announcements during the month of August, nearly tripling July's tally.

In comparison to a year before, layoff announcements were up by 1%, but 3.7% lower year-to-date.

Even so, Andrew Challenger, a senior vice president at the consultancy, said: "August's surge in job cuts reflects growing economic uncertainty and shifting market dynamics.

"[...] Cuts are following a very similar trend from last year as ongoing pressures have challenged labor decisions."

Indeed, companies' hiring plans fell to their lowest level year-to-date since the consultancy began tracking them back in 2005, Challenger said.

"The labor market overall is softening," he added.

Technology outfits made 39,563 job cut announcements in August, with Challenger saying that the sector was moving from a focus on growth and innovation to one on profitability and efficiency.

Technology, Retail and Media&News had all announced fewer job cuts year-to-date than across the same period of 2023.

But the opposite was true in Education, Entertainment/Leisure and Industrial Manufacturing.