Job cuts jump to highest level since January 2023
U.S. Bank Wealth Management Senior Vice President Lisa Erickson analyzes stock movements, the job market and potential 'further signs of deterioration.'
The pace of job cuts by U.S. employers accelerated again in March, a sign the labor market is starting to deteriorate in the face of ongoing inflation and high interest rates.
That is according to a new report published Thursday by Challenger, Gray & Christmas, which found that companies planned 90,309 job cuts in March, a 7% increase from the previous month and a 0.7% increase from the same time last year.
It marked the highest monthly layoff total since January 2023.
WAGES IN THE US ARE FALLING AT A 'STRIKING' PACE, INDEED SAYS
Jobseekers hold fliers during a career fair at an NC Works Career Center in Wilmington, North Carolina on March 20, 2024. (Photographer: Allison Joyce/Bloomberg via Getty Images / Getty Images)
«Layoffs certainly ticked up to round out the first quarter, though still below last year’s levels,» said Andy Challenger, senior vice president of Challenger, Gray & Christmas. «Many companies appear to be reverting to a ‘do more with less’ approach.»
Technology companies bore the brunt of the job losses in March, with the industry shedding 14,224 employees. In total, the tech sector has lost 42,442 jobs since the start of the year.
The government followed with 36,044 layoffs in March, including 10,000 jobs from Veterans Affairs and 24,000 from the U.S. Army. It marks the highest monthly total for the sector since September 2011.
PRIVATE SECTOR JOB GROWTH RISES MORE THAN EXPECTED IN MARCH
Financial firms have also seen a sharp jump in layoffs so far this year, slashing 28,715 positions during the first quarter. However, that is down about 6% from
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