News: Layoffs decline in Q1: Job market shows resilience amid high interest rates

Talent Management

Layoffs decline in Q1: Job market shows resilience amid high interest rates

In Q1 this year, layoffs totalled 257,254, down from 270,416 last year, highlighting a resilient job market despite high interest rates.
Layoffs decline in Q1: Job market shows resilience amid high interest rates

In March, layoff announcements in the United States surged by 7%, reaching the highest level since January 2023. The increase was primarily driven by job eliminations in the technology and government sectors. 

However, despite this uptick, the total number of cuts announced year-to-date decreased by 5% compared to the same period last year, reflecting the resilience of the job market. According to a report released on Thursday by outplacement firm Challenger, Gray & Christmas, job cut announcements rose to 90,309 in March from 84,638 in February. 

Compared to March 2023, the level saw a slight increase of 0.7%, up from the 89,703 cuts announced during the same period last year. During the first quarter of this year, the technology industry maintained its lead in job cuts, surpassing other sectors by announcing 14,224 layoffs in March alone and a total of 42,442 since the beginning of the year. 

Conversely, the U.S. government emerged as the primary contributor to job cuts last month, with 36,044 layoffs announced, marking the highest figure since September 2011. The reductions were primarily concentrated within Veterans Affairs and the United States Army. 

In the first quarter of this year, companies have announced 257,254 layoffs, reflecting a decline from the 270,416 reported in the same period last year. This trend indicates a resilient job market, even amidst high interest rates. 

A recent report from payroll processor ADP revealed the creation of 184,000 private-sector jobs last month, surpassing expectations. Additionally, the government is anticipated to report an overall addition of about 200,000 payroll jobs in March. 

Employers primarily attributed job eliminations to cost-cutting and restructuring efforts, according to Challenger. Andy Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc., noted that many companies are adopting a "do more with less" approach, with technology leading the trend across industries. However, sectors such as energy and industrial manufacturing are witnessing more job cuts this year compared to last.

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Topics: Talent Management, #HRCommunity, #Layoffs, #HRTech

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