Main Article: Challenger Job Cuts - InvestmentWiki
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- U.S.-based employers announced 47,457 cuts in September, down 37% from the 75,151 cuts announced in August. It is up 58% from the 29,989 announced in the same month one year prior.
- Employers announced 146,305 cuts in the third quarter, a 92% increase from 76,284 cuts announced in the same quarter last year. It is down 22% from the 187,793 cuts announced last quarter.
- YTD companies have planned 604,514 cuts, a 198% increase from the 209,495 cuts announced through September 2022. It is the highest January-September total since 2020, with the exception of 2020, it is the highest January to September total since 2009.
https://omscgcinc.wpenginepowered.com/wp-content/uploads/2023/10/Challenger-Job-Cuts-Report-September-2023.pdf
U.S.-based employers announced 36,836 cuts in October, a 22% decrease from the 47,457 cuts announced one month prior. It is 9% higher than the 33,843 cuts announced in the same month last year.
- In Q3 job cuts announcements were -22 q/q, but 130% y/y. YTD they are up 163.5% at 641,350.
- Tech, retail, health care, warehousing, and financial biggest contributors.
- Economic conditions, closing, cost-cutting, and restructuring are the reasons most cited.
- Hiring plans YTD at 761k (573,300 seasonal hirings), -46% y/y, But still outpacing cuts.
“Job cut plans have slowed significantly since the first half of the year, and consumers have continued to spend, even in the face of high inflation. Pandemic savings and higher wages have gotten many workers through economic uncertainty,” said Andy Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc.
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U.S.-based employers announced 45,510 cuts in November, a 24% increase from the 36,836 cuts announced one month prior. It is 41% lower than the 76,835 cuts announced in the same month in 2022.
“The job market is loosening, and employers are not as quick to hire. The labor market appears to be stabilizing with a more normal churn, though we expect to continue to see layoffs going into the New Year,” said Andrew Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc.
- So far this year, companies have announced plans to cut 686,860 jobs, a 115% increase from the 320,173 cuts announced in the same period last year. It is the highest January-November total since 2020, when 2,227,725 cuts were recorded. Prior to 2020, it is the highest year-to-date total since 1,242,936 cuts were announced through November 2009.
- In November, employers announced plans to hire 15,566 workers, for a total of 775,501. This is the lowest year-to-date total for announced hiring plans since 2015, when 679,286 hiring plans were recorded through November
https://omscgcinc.wpenginepowered.com/wp-content/uploads/2023/12/Challenger-Report-November-23.pdf
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We ended the 2023 year with way more job cuts and fewer hiring plans from 2022.
However, as we see from the table, job cuts were concentrated in the first part of the year, and mostly from the tech sector, and it has stabilized since then. We would probably need a new pick up in cuts to have a significant impact on the employment numbers.
- In the fourth quarter, companies announced plans to cut 117,163 jobs, down 20% from the 146,305 cuts
announced in the third quarter of the year. It is down 24% from the 154,329 cuts which occurred in the final quarter of 2022. - In 2023, companies planned 721,677 job cuts, a 98% increase from the 363,824 cuts announced in 2022. It is the highest annual total since 2020, when 2,304,755 cuts were recorded. With the exception of 2020, it is the highest total since 2009, when 1,288,030 job cuts were announced.
- US-employers announced plans to add 780,123 positions in 2023, down 47% from the 1,482,364 in 2022. It is the lowest number of announced hiring plans since 2015, when employers planned to hire 690,751 workers.
https://omscgcinc.wpenginepowered.com/wp-content/uploads/2024/01/Challenger-Report-December-2023.pdf
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Challenger Job cuts spiked in January, with 82,307 cuts in January, a 136% one month prior. It is down 20% from in the same month in 2023.
I think there could be seasonality in this involved because the start of the year is when most companies start to implement changes for the whole year. We also saw this last year. But is also one of the highest January.
With the exception of last January’s total, this is the highest number of job cuts announced in
January since January 2009, when 241,749 cuts were announced in the first month of that year
Last month, “restructuring” was the most-cited reason for job cuts with 28,329, followed by plant,
store and unit “closing” which accounted for 14,555 cuts
What looks pretty soft is the hiring plans announced.
U.S. employers announced plans to hire 5,376 workers in January, the lowest January total on
record. It is up 78% from the 3,022 announced hiring plans in December, which was the lowest
monthly total on record.
Maceoedge has also pointed out the high amount of layoffs this January, they have track 103 jub cuts announces.
https://twitter.com/MacroEdgeRes/status/1752841908257268198
Both these companies track job cut announcements that companies make in news, earnings, etc, so is not the total amount of cuts in the economy, and cuts do not happen right away since company have to give notice and severance to employees
Most of labor data shows the same. Cooling in hiring, but not so much in lay offs yet.
In the first quarter, companies announced plans to cut 257,254 jobs, down 5% from the 270,416 cuts announced in the same quarter last year. It is up 120% from the 117,163 cuts that occurred in the final quarter of 2023.
U.S. employers announced plans to add 36,795 positions in the first quarter, a 48% decrease from the 70,638 hiring plans announced during the same period last year. This is the lowest number of announced hiring plans since 2016
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The Challenger, Gray & Christmas report showed 172k job cuts in February:
- +245% m/m
- +103% y/y
- The highest total for the month since 2009 and the highest monthly total since July 2020
Over 1/3 was government sector cuts: 62K highest on record due to DOGE cuts Nearly 1/3 was in consumer & retail: +50k
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