HomeMarket News Unprecedented Surge in U.S. Job Cuts in 2023: Challenger Job...

Unprecedented Surge in U.S. Job Cuts in 2023: Challenger Job Cuts Report

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December Cuts Drop, but Overall 2023 Sees Startling Increase

After a tumultuous year of job cuts, U.S.-based employers announced 34,817 layoffs in December. This figure represents a 24% decrease from the 45,510 cuts reported in November and a 20% decline from the preceding month.

However, the staggering statistics do not end there. The year 2023 witnessed an alarming 721,677 planned job cuts by companies, marking a staggering 98% surge from the 363,824 cuts recorded in 2022. This is the highest annual total since 2020, unleashing apprehension across the employment landscape.

Predictions for 2024: A Gloomy Outlook

According to Andy Challenger, a workplace and labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc., the layoffs have begun to taper off as the year concluded. Simultaneously, hiring has maintained a steady pace. However, the labor market is grappling with notably high costs.

Challenger painted a bleak picture for the upcoming year, asserting that employers remain exceedingly cautious and are steadfast in their cost-cutting strategies as they approach 2024. This reluctance has invariably led to a slowdown in the hiring process, consequently spelling challenging times for job seekers. Moreover, the foreboding news is that the cuts are expected to persist into the first quarter of 2024, albeit at a reduced pace.

Welcoming Chart of Job Cuts in 2023

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Image Source: challengergray.com

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