U.S. employers in August unveiled the greatest number of layoffs in five months, led by cuts in the technology sector, amid a cloudy outlook for growth and ongoing cost concerns, a monthly tally of workforce reduction announcements showed on Thursday.
Firms announced 75,891 layoffs last month, roughly triple the number in July and the largest month-to-month increase in a year, outplacement firm Challenger, Gray and Christmas said. Still, announced staff reductions are down 3.7% year to date.
“August’s surge in job cuts reflects growing economic uncertainty and shifting market dynamics. 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,” Challenger Vice President Andrew Challenger said in a statement.
The data comes amid growing concern about the job market as recent government reports have shown increases in the unemployment rate and in the number of layoffs in July. The softening tone to employment data has caught the eyes of Federal Reserve policymakers, who are now expected to kick off interest rate cuts this month to protect the job market from a rapid deterioration.
More than half of August’s cut announcements were in the tech sector, totaling 39,563, up sharply from around 6,000 in July and the most since January 2023. The health sector had the next largest announced layoffs at 6,158.
(Source: ReutersReuters)
