August Layoffs Increase While 2024 Hiring Hits Record Low, According to Challenger Report
In August, layoffs reached their highest level in 15 years, according to outplacement firm Challenger, Gray & Christmas. Announced job cuts totaled 75,891 for the month, a 193% increase from July. While this figure was only 1% higher than August of the previous year, it was the highest number for August since 2009. On the hiring front, companies added just 6,101 new workers, down over 21% from the previous August. The year-to-date hiring announcements of nearly 80,000 mark a historic low since 2005.
Andrew Challenger, the firm’s senior vice president, noted that the surge in job cuts in August reflects growing economic uncertainty and shifting Market Dynamics. Companies are facing various pressures, from rising operational costs to concerns about a potential economic slowdown, leading them to make tough decisions about workforce management.
The report raises concerns about weakening labor market conditions, despite the growth of 1.4 million nonfarm payrolls this year. The Challenger layoffs data suggests a softening jobs picture, with companies in the technology field announcing the most cuts.
Overall, the labor market is softening, with companies citing cost-cutting and economic conditions as the primary reasons for job cuts. Artificial intelligence was also listed as a reason for layoffs for the first time since April.
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Lucas Bennett, completed his Finance degree at Bocconi University in Italy in 2018. He is highly skilled in corporate finance and risk management, beginning his career at a hedge fund in Milan. Lucas expertise extends to consulting for leading European firms, particularly within the energy markets sector. His analytical skills and strategic mindset have made him a sought-after consultant, and he continues to explore new opportunities within the financial services industry across Europe.