U.S. layoff announcements surged 175% year-on-year in October, with more than 153,000 announced. It was the highest number for an October since 2003, according to Challenger, Gray & Christmas. The total for 2024 is now over a million, up 65% from a year ago.
The firm said the surge reflects the significant disruption from the growing use of AI, as well as a slowdown in consumer and corporate spending and rising operating costs. Major companies such as Amazon and Target have announced significant layoffs in recent months.
However, not all layoff announcements will immediately affect the unemployment rate. The U.S. labor market is adjusting after a period of rapid post-pandemic growth.
Evaluating the health of the economy has become increasingly challenging as the prolonged U.S. government shutdown has suspended the release of official data including the Labor Department’s monthly jobs report.
In the absence of official data, investors and policymakers are now relying on private reports such as ADP and Challenger. However, Fed Chairman Jerome Powell warned that the absence of official data could affect the accuracy of monetary policy and delay future interest rate cuts.
