In September, U.S. employers veered away from planned layoffs, with the warehousing sector notably reversing course, as revealed in the most recent report unveiled on Thursday. That being said, plans to cut back on staff were larger than they had been at the beginning of the year, and the trend of layoffs in the IT and retail sectors continued.
According to the report by Challenger, Gray & Christmas, the tally of announced job cuts by U.S. employers in the past month stood at 47,457, marking a significant decrease of approximately 37% from the 75,151 reported in August. It's worth noting, however, that these announced September reductions were still a considerable 58% higher than those recorded in September 2022.
The report further highlights that these layoffs were the most substantial since the onset of the COVID-19 pandemic in 2020. In most instances, employers pointed to market uncertainty as the primary driver behind these job cuts, followed by decisions to close plants, divisions, or stores.
Despite a notable rise in the count of announced job cuts this year, data from the JOLTS report released by the US Bureau of Labor Statistics indicate that monthly layoffs in 2023 have generally mirrored the figures from the previous year. The number of layoffs remained nearly unchanged from July to August and maintained a consistent trend compared to the same timeframe last year.
After laying off almost 22 million people during the beginning of the COVID-19 epidemic, U.S. firms continue to struggle with rebuilding their workforces. After their positions were returned, many quit their jobs in the "Great Resignation," seeking higher pay and a better work-life balance.
Employers in the technology, retail, and finance sectors have recently announced job cuts in response to fears of a possible recession and the impact of rising costs on revenues.
In September, U.S. employers revealed their intentions to generate 590,353 fresh job vacancies, representing a substantial surge compared to the 380,014 job openings reported in September 2022. The primary purpose behind these job opportunities is to fulfill seasonal employment requirements, as stated in the Challenger report.
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