Hiring announcements by U.S. employers in 2024 fell to their lowest since 2015, according to Challenger, Gray & Christmas. Companies reported 769,953 hiring plans, a 1.3% decline from 2023. In December, hiring dropped to 7,999 from 11,621 in November, reflecting sluggish job growth. The unemployment rate rose from 3.7% in January to 4.3% in July before stabilizing at 4.2% in November.
Andrew Challenger, senior vice president at Challenger, Gray & Christmas, attributed the slowdown to economic uncertainty and cautious expansion strategies. He noted, “Most employers are anticipating additional uncertainty with the upcoming administration, leading to slower hiring.”
Planned job cuts hit 761,358 in 2024, the highest since the pandemic-stricken 2020, marking a 5.5% increase from 2023. Outside the pandemic, layoffs were at their highest since 2009. However, December saw a 33% drop in planned job reductions, totaling 38,792.
The technology sector led job cuts, followed by healthcare, automotive, services, and consumer products industries. Employers cited market conditions, cost-cutting, closures, and restructuring as primary reasons for layoffs.
Despite the surge in announced layoffs, Labor Department data, including weekly jobless claims and the Job Openings and Labor Turnover Survey, indicated consistently low layoffs throughout the year.
This data underscores a sharp moderation in job growth as employers adopt a cautious approach amid economic uncertainty.
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