Another evidence of the slowdown in the US job market! Layoffs surge while new job openings decrease significantly.
This year, challenger companies have announced plans to lay off 557,057 people, an increase of 210% compared to the same period last year.
On Thursday, the US released its Challenger job cuts data for August.
The data shows that job cuts by US Challenger companies reached a new high since May.
Increase in Job Cuts
In August, US Challenger companies announced a total of 75,151 job cuts, compared to 23,697 in the previous month, marking a new high since May.
Andy Challenger, Senior Vice President of Challenger, Gray & Christmas, a job placement firm, stated that "it is not surprising to see an increase in job cuts as technology disrupts industries and companies look to cut costs."
He also mentioned that "job openings are decreasing, and American workers are now less willing to leave their positions." After the hiring frenzy during and after the pandemic, the job market is undergoing a readjustment.
Challenger, Gray & Christmas also reported that the number of job cuts announced by US employers in August was more than three times higher than the same period last year.
Andy Challenger further explained that the healthcare industry, especially hospitals, is experiencing significant workforce changes as they strive to provide high-quality medical services while maintaining profitability. The turnover rate for hospital CEOs is also higher than last year.
210% Increase in Year-to-Date Job Cuts
According to Challenger, Gray & Christmas, "companies have announced plans to cut 557,057 jobs so far this year, a 210% increase compared to the same period last year (179,506 job cuts)."
This year's job cuts have reached the highest level from January to August since 2020 (when a total of 1,963,458 job cuts were announced), and it is the third-highest level since 2009.
In August, employers announced plans to hire 7,744 employees, the lowest monthly total since November 2020. So far this year, companies have announced plans to add 135,980 positions, a decrease of 83% compared to the same period last year.