In September, the U.S. recorded 72,821 job cuts, a 4% decrease from the 75,891 reported in August, according to a report by Challenger, Gray & Christmas Inc.
Despite this slight month-over-month decline, job cuts were up 53% compared to September 2023. The technology sector experienced the highest number of layoffs, with 11,430 cuts, 5,616 of which were attributed to the impact of artificial intelligence.
During the third quarter of 2024, the country saw 174,597 job cuts, marking a 16% drop from the previous quarter but a 19% rise compared to the same period last year.
Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas, noted that the labor market is at a critical juncture.
He suggested it could either stall or tighten in the coming months, depending on how changes in interest rates affect employer costs and consumer savings.
Challenger also pointed out that consumer spending is projected to rise, which could boost demand for workers, particularly in consumer-facing industries.
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