More than 75 employers accept resumes and speak with potential new employees at a job fair Wednesday, February 21, 2024, in Lake Forest, California.
Paul Bersebach | Media News Group | Orange County Register | Getty Images
Job cuts announcements in February reached their highest level since the global financial crisis, according to employment consultancy Challenger, Gray & Christmas.
total 84,638 program cuts It grew 3% from January and 9% from the same month last year, with technology and financial companies at the forefront.
From a historical perspective, it was the worst February since 2009, when 186,350 announcements were made, and the worst of the financial crisis appeared to be coming to an end. Financial markets bottomed out the following month, paving the way for the longest economic expansion on record, which lasted until the COVID-19 pandemic hit in March 2020.
The number of companies listed for layoffs throughout the year was 166,945, a decrease of 7.6% compared with the same period last year.
“In early 2024, we witnessed a sustained wave of layoffs,” said Andrew Challenger, labor and workplace expert at the company. “Businesses are aggressively cutting costs and embracing technological innovation, and these initiatives are significantly transforming their workforce. need.”
Following a series of high-profile layoffs, the technology sector has shed the most jobs this year, with 28,218, although that number is down 55% from the same period last year. Compared with the first two months of 2023, layoff announcements from financial companies increased by 56%.
Other industries slated for significant cuts include industrial goods manufacturing (up 1,754% annually), energy (up 1,059%) and education (up 944%).
However, the number of layoffs does not reflect the Weekly unemployment claims, showing that unemployment is short-lived and workers are able to find new positions. Initial claims for unemployment insurance in the latest week were 217,000, unchanged from the previous period and in line with Wall Street estimates.
Experts at challenger companies say companies most often cite turnaround plans as the main reason for layoffs. Artificial intelligence was cited as the cause of only 383 cuts, although “technology updates” overall were at the root of more than 15,000 cuts, nearly as many as in all years since 2007 combined.
The Challenger report states: “In fact, in addition to artificial intelligence, companies are also implementing robotics and automation technologies. It is worth noting that last year alone, 4,247 employees were directly laid off, which shows the impact of artificial intelligence on the enterprise workforce. getting bigger.”
