WASHINGTON (dpa-AFX) - Job cuts in the U.S. rocketed in August, while hiring was the lowest for the year-to-date period, monthly survey results from the outplacement services firm Challenger, Gray & Christmas, Inc. showed on Thursday.
U.S.-based employers announced 75,891 cuts in August, a whopping 193% increase from the 25,885 cuts announced in the previous month.
Layoffs were 1 percent higher from the 75,151 cuts announced in the same month in 2023.
In the year-to-date period, U.S. companies announced 536,421 job cuts, which were 3.7 percent less than those announced in the same period last year. Excluding the 115,762 job cuts announced in August of 2020, last month was the highest August total since 2009, when 76,456 layoffs were recorded, the report said.
The JOLTS report showed on Wednesday that job openings were broadly flat in July.
In further signs of labor market softening, the Challenger report revealed that hiring plans have fallen to the lowest year-to-date total since Challenger began tracking the same in 2005.
In August, hiring plans totaled 79,697, down 41 percent from the 135,980 plans recorded through August last year.
'August's surge in job cuts reflects growing economic uncertainty and shifting market dynamics,' Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc., said.
'Companies are facing a variety of pressures, from rising operational costs to concerns about a potential economic slowdown, leading them to make tough decisions about workforce management,' he added.
'Cuts are following a very similar trend from last year as ongoing pressures have challenged labor decisions,' Challenger said.
Among sectors, the tech sector shed 39,563 jobs in August, which was the biggest layoff in 20 months.
Both education and industrial manufacturing sectors announced triple digit rates of increase in job cuts during the year-to-date period.
Jobs were also lost in the entertainment/leisure, retail and news/media industries.
Cost-cutting and market/economic conditions were cited as the reasons for laying off employees.
The Challenger report also said that employers specified Artificial Intelligence (AI) as a reason for job cuts for the first time since April.
In August, 5,943 cuts were due to AI, all of which occurred in the technology space. So far this year, 7,126 cuts are due to AI, the report said.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
