U.S. Labor Market Weakens in August with Smallest Job Gains Since 2021, 75,891 Layoffs

Sep 5, 2024, 12:30 PM

The U.S. labor market showed signs of weakening in August 2024, with several key indicators highlighting a slowdown. The ADP employment report revealed that private payrolls increased by just 99,000, the smallest gain since January 2021, and well below the expected 145,000. This marks the fifth consecutive month of slowing job growth. Additionally, Challenger reported 75,891 announced layoffs in August, a significant rise from the previous month's 25,885, marking the highest total for the month in 15 years. Initial jobless claims for the week ending August 31 were 227,000, slightly below the expected 230,000, while continuing claims stood at 1.838 million. Despite the low number of layoffs, the overall labor market appears to be losing momentum. Year-to-date hiring reached a historic low, and the previous month's ADP data was revised lower. Challenger job cuts increased by 1.0% year-over-year.