MNI BRIEF: US Layoffs Surge in August, Hiring Dips -Challenger

U.S. employers announced 75,891 job cuts in August, triple the 25,885 in July and just a tad higher than in the same month last year, according to a report Thursday from global outplacement firm Challenger, Gray & Christmas Inc. That marks the highest August total since 2009, excluding the 115,762 job cuts announced during the pandemic in August 2020.

So far this year, companies have announced 536,421 job cuts, down 3.7% from 557,057 through August of last year. The tech sector accounted for about half of the cuts announced in August. Federal Reserve officials have cited softening labor market conditions as a reason to start lowering borrowing costs this month. (See: MNI POLICY: Fed Prefers Gradual Rates Easing If Jobs Allow)

Employers also announced 79,697 hiring plans during the January to August period, down 41% from the 135,980 plans recorded through August last year. The year-to-date total is the lowest since Challenger began tracking it in 2005, the report said.