US Job Cuts Surge to 75,891 in August, Up 193% as Tech Sector Hit Hard

Sep 5, 2024, 11:38 AM

The latest Challenger, Gray & Christmas report reveals a significant surge in job cuts announced by U.S.-based employers in August 2024. The actual number of layoffs reached 75,891, a substantial increase from the previous month's 25,885. Year-over-year, the job cuts rose by 1.0%, down from 9.2% in the previous period. The tech sector experienced the largest increase in job cut announcements, while the food industry saw the largest decrease. This marks the highest August print in 15 years and the biggest sequential jump since August 2023. Job cuts were up 193% compared to July. The report attributes the rise in layoffs to growing economic uncertainty and shifting market dynamics, including concerns about a potential economic slowdown. Additionally, the report highlights that hiring has fallen to its lowest year-to-date level since Challenger began tracking in 2005, with cuts in leisure and entertainment up 85% YTD.