US hiring announcements in 2024 lowest in nine years

Audio By Carbonatix

Enlarge

WASHINGTON (Reuters) – Hiring announcements by U.S. employers last year were the lowest since 2015, a report showed on Thursday, confirming a sharp moderation in job growth over that period.

Global outplacement firm Challenger, Gray & Christmas said

companies announced 769,953 hiring plans, down 1.3% from 2023.

Hiring announcements dropped to 7,999 in December from 11,621 in November. Sluggish hiring accounted for the slowdown in job gains last year, with the unemployment rate jumping from 3.7% at the start of the year to 4.3% in July and then stabilizing, hovering at 4.2% in November.

“The slower hiring pace reflects ongoing uncertainty in economic conditions and cautious approaches by employers to expansion,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. “Most employers are anticipating additional uncertainty with the upcoming administration, which is leading to slower hiring.”

Planned job cuts totaled 761,358 last year, the highest since 2020 when the labor market was roiled by the COVID-19 pandemic, up 5.5% from 2023. Outside the pandemic, announced layoffs were the highest since 2009.

Despite the surge in announcements, Labor Department data like weekly jobless claims and the Job Openings and Labor Turnover Survey have consistently shown low layoffs.

Planned job reductions dropped 33% to 38,792 in December. The technology sector accounted for the bulk of announced job cuts last year, followed by healthcare, automotive, services and consumer products industries.

Market or economic conditions, cost cutting, closing and restructuring were the top reasons for planned layoffs.

(Reporting by Lucia Mutikani; Editing by David Gregorio)