U.S. Job Cuts Reach Highest Level Since 2020 as Economic Worries Grow

U.S. employers’ hiring announcements for 2024 hit their lowest level since 2015, confirming a sharp slowdown in job growth during this period.

According to leading U.S. hiring data, companies announced plans to hire 769,953 employees on Thursday, a 1.3% decrease from 2023.

Corporate job postings fell from 11,621 in November to 7,999 in December. The slowdown in employment growth is primarily attributed to sluggish hiring.

761,358 job cuts were planned last year, the highest since 2020, when the COVID-19 pandemic disrupted the labor market, and a 5.5% increase from 2023.

Andrew Challenger, senior vice president of Challenger, Gray & Christmas, noted that the hiring slowdown reflects ongoing economic uncertainty and employers’ cautious approach to expansion.

He added that most employers anticipate additional uncertainty with the incoming administration, leading to slow employment.

The number of planned job cuts in December decreased by 33% to 38,792. Last year, most job cuts were announced in the tech sector, followed by the healthcare, automotive, services, and consumer goods industries.

The planned layoffs were primarily due to market conditions, economic factors, cost-saving measures, closures, and restructuring.

Meanwhile, the unemployment rate surged from 3.7% at the beginning of the year to 4.3% in July before stabilizing at 4.2% in November.

Despite the surge in layoff announcements, Department of Labor data, including weekly unemployment claims, job openings, and employment turnover surveys, consistently show low layoff rates.