On January 30, 2024, a UPS driver made a delivery in Miami Beach, Florida.
Joe Reddell | Getty Images
Companies announced the largest level of layoffs in January since early 2023, a potential trouble spot in the labor market that will be in the spotlight this year, according to a Thursday report from Challenger, Gray & Christmas.
The employment placement company said it planned to lay off a total of 82,307 people this month, a 136% increase from December but still 20% lower than the same period last year.
This is the second-highest January layoff total and the lowest planned hiring level since 2009.
Technology and finance are among the hardest-hit industries, with some of Silicon Valley’s most ambitious leaders, such as Microsoft, letter PayPal announced layoffs at the start of the year.Amazon also said it would cut spending ups This is the largest number of layoffs in a month since March 2023.
“After a quiet fourth quarter, a wave of layoffs hit corporate America in January,” said Andrew Challenger, the company’s senior vice president. The layoffs were “driven by broader economic trends as well as various This is driven by industry shifts in strategy to increase the adoption of automation and artificial intelligence, although in most cases companies pointed to cost cutting as the main driver of layoffs.”
Financial sector layoffs totaled 23,238, the category’s worst month since September 2018. The total number of layoffs in the technology industry was 15,806, the highest since May 2023. Food manufacturers announced 6,656 job cuts, the most since November 2012.
“High costs and advanced automation technologies are reshaping the food production industry. Additionally, climate change and immigration policies are impacting the industry’s workforce dynamics and operational challenges,” Challenger said.
On Wednesday, ADP released a report saying private payrolls increased by just 107,000 this month. On Friday, the Labor Department will report nonfarm payrolls, which are expected to increase by 185,000.
Initial jobless claims totaled 224,000 in the week ended January 27, an increase of 9,000 from the previous week. The U.S. Department of Labor reported on Thursday that the number of people continuing to apply for unemployment benefits increased by 70,000 from a week later.
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