Former World Bank President David Malpass claims there is an “opportunity” for the Federal Reserve to consider cutting interest rates “in the morning with Maria”.
of pace of work Job cuts by U.S. employers are accelerating in early 2024, a sign that the labor market is starting to deteriorate in the face of ongoing inflation and high interest rates.
That’s according to a new report published by Challenger, Gray & Christmas, which finds companies plan to cut 82,307 jobs in January, a massive 136% increase from the previous month. did. However, compared to the same period a year ago, it has decreased by about 20%. This was the second-highest January layoff total in data dating back to 2009.
“After a quiet fourth quarter, a wave of layoff announcements hit U.S.-based companies in January,” said Andy Challenger, senior vice president at Challenger, Gray & Christmas. . The layoffs were driven by “broader economic trends and a strategic shift towards increased automation and AI adoption in a variety of sectors, but in most cases companies are looking to cut costs as the primary driver of headcount reductions.” I’m pointing it out.”
The number of well-paying jobs is decreasing
Job seekers attend the Veterans Employment and Resources Fair on January 9, 2024 in Long Beach, California. (Photographer: Eric Thayer/Bloomberg via Getty Images/Getty Images)
Financial companies bore the brunt of the job losses in January, with 23,238 people laid off across the industry. This is the highest monthly total for financial sector job cuts since September 2018, when the bank announced 27,343 job cuts.
of Technology department This was followed by 15,806 layoffs, the highest number since May 2023 and a staggering 254% increase from just a month ago.
US economy adds 216,000 jobs in December, more than expected
“The impact of the rapid adoption of artificial intelligence is starting to be felt from an employment perspective, particularly in media and technology, but it is having an impact across sectors,” Challenger said. “However, companies are not blaming AI entirely for many layoff decisions.”
Food manufacturing companies also accounted for the bulk of the layoffs in January, shedding 6,656 positions, the sector’s highest monthly total since November 2012. Challenger said “higher costs and increased automation” are reshaping the way the industry operates.
According to the report, the industry is battling headwinds such as climate change and immigration policies that impact labor dynamics.
Job seekers visit a booth during the Spring Job Fair held at the Las Vegas Convention Center on April 15, 2022. (KM Cannon/Las Vegas Review Journal/Getty Images)
Another source of layoffs in January was retail stores, which cut 5,364 jobs in January, a significant increase from the 110 layoffs announced in December.
The biggest reason for last month’s layoffs was restructuring. Companies also blamed store closures and artificial intelligence for job cuts.
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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 findings were released ahead of the Labor Department’s release of its more closely watched January jobs report on Friday morning, with employers hiring 180,000 more workers as the number of employees increases. It is expected that this will be shown. 216,000 people in December.
The unemployment rate is expected to rise gradually to 3.8%.
