Layoffs surged in February to highest level since 2009
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The pace of job cuts by U.S. employers accelerated in February, 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 84,638 job cuts in February, a 3% increase from the previous month and a 9% jump from the same time last year.
It marked the highest layoff total for the month of February in data going back to 2009.
«As we navigate the start of 2024, we're witnessing a persistent wave of layoffs. Businesses are aggressively slashing costs and embracing technological innovations, actions that are significantly reshaping staffing needs,» said Andy Challenger, senior vice president of Challenger, Gray & Christmas.
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A job seeker attends a Veteran Employment and Resource Fair in Long Beach, California, on Jan. 9. (Eric Thayer/Bloomberg via Getty Images / Getty Images)
Technology companies bore the brunt of the job losses in February, with the industry shedding 12,412 employees. In total, the tech sector has lost 28,218 jobs since the start of the year.
Financial firms followed with 26,856 layoffs since the start of the new year, a 54% increase from the same period last year.
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Industrial goods manufacturing companies have also seen a sharp jump in layoffs so far this year, slashing 7,806 positions – a stunning 1,754% increase from last year. Energy companies have also announced 1,059% more cuts
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