Lisa Erickson, senior vice president at U.S. Bank Wealth Management, analyzes stock trends, the job market and potential “signs of further deterioration.”
of pace of work Layoffs by U.S. employers accelerated again in March, a sign that the labor market is beginning to deteriorate in the face of ongoing inflation and high interest rates.
That’s according to a new report released Thursday by Challenger, Gray & Christmas, which shows companies planning to cut 90,309 jobs in March, an increase of 7% from the previous month and a 0.7% increase from the same period last year. It turned out to be an increase of %.
This is the highest monthly layoff total since January 2023.
US wages are falling at an ‘alarming’ pace, they actually say
A job seeker holds a flyer at a career fair at the NC Works Career Center on March 20, 2024 in Wilmington, North Carolina. (Photographer: Alison Joyce/Bloomberg via Getty Images/Getty Images)
“We did see an increase in layoffs as we closed out the first quarter, but they were still below last year’s levels,” said Andy Challenger, senior vice president of Challenger, Gray & Christmas. He said, “Many companies seem to be returning to a ‘do more with less’ approach.”
technology companies The industry felt the brunt of the job losses in March, with 14,224 employees being cut. A total of 42,442 jobs have been lost in the tech industry since the beginning of this year.
The government followed with 36,044 layoffs in March, including 10,000 from the Department of Veterans Affairs and 24,000 from the U.S. Army. This is the highest monthly total for the sector since September 2011.
Private sector job growth exceeded expectations in March
Financial institutions have also seen a rapid increase in layoffs this year, with 28,715 positions cut in the first quarter. However, this is about a 6% decrease compared to the 30,635 reductions announced for the same period in 2023.
Educators gather to speak with prospective employees during a Prince George’s County School District recruiting event at Henry A. Wise Middle School on Aug. 2, 2023, in Upper Marlboro, Maryland. ((Amanda Andrade-Rose/The Washington Post via Getty Images)/Getty Images)
Another source of job cuts in March was transportation companies, which have shed 15,746 jobs since the start of the year, an astonishing 483% increase compared to the same period last year.
Cost cutting was the biggest reason for layoffs last month, accounting for 66,302 layoffs in the first quarter. Companies also blame restructuring, store closures, adverse market conditions and bankruptcies.
Meanwhile, companies planned to add just 36,795 positions in the first quarter, down 48% year-over-year. This is the lowest number of recruitment plans announced since 2016.
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The labor market has remained historically tight over the past year, contrary to economists’ predictions of an economic slowdown. Economists say the economy is starting to normalize after last year’s breakneck pace, but it is far from a breakthrough.
The statistics came ahead of the Labor Department’s release of its more closely watched February jobs report on Friday morning.
The unemployment rate is expected to remain stable at 3.9%.
