On Thursday, November 6, the latest report released by the US human resources consulting firm Challenger, Gray & Christmas showed that American companies have laid off a total of 1,099,500 people in the first ten months of this year, marking a sharp increase of 65% compared to the same period last year and a 44% increase in total layoffs from the previous year.
According to the report, the layoff wave in American companies has significantly intensified this year. With the government shutdown leading to the suspension of official employment data releases, investors and decision-makers are turning to data and information from private institutions like Challenger, Gray & Christmas to assess the true state of the US job market and economic trends.
The report tracks unemployment situation every month. In October alone, American companies announced layoffs of 153,074 people, nearly tripling from 54,064 in September. Companies cited reasons for these layoffs as cost-cutting initiatives and the implementation of artificial intelligence (AI).
In this wave of layoffs, the warehousing industry saw the largest increase in layoffs, cutting nearly 48,000 positions, while tech companies stated that they will be laying off over 33,000 employees.
Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas, stated in a release, “Some industries are readjusting for overexpansion during the pandemic. However, the rapid adoption of AI, slowdown in consumer and business spending, and rising costs are pushing companies to tighten budgets and freeze hiring.”
A day earlier, data released by the payroll services company ADP showed that the private sector in the US added 42,000 jobs in October, ending a two-month decline trend.
Analysts point out that although the overall employment in the US remains resilient, the scale of layoffs in recent months and the economic transformation triggered by the adoption of AI are beginning to show signs of a new wave of structural adjustments.