While layoffs increased in August, the Challenger report reveals that hiring in 2024 is at a record low.

• In August, layoffs surged to their highest monthly total in 15 years, while year-to-date hiring reached its lowest point in 19 years, according to a survey by Challenger, Gray & Christmas.
• In the technology field, companies announced the highest number of planned layoffs in 20 months, with a total of 41,829 cuts, according to the report.

In August, the number of layoffs increased significantly, reaching a 15-year high, while year-to-date hiring reached an unprecedented low, according to Challenger, Gray & Christmas.

The number of job cuts announced in August 2023 was 75,891, a 193% increase from July. Despite being only 1% higher than the same month in 2023, it was the highest number for August since 2009, as the economy was still recovering from the global financial crisis.

Nearly 80,000 new workers have been hired year-to-date, which is the lowest total since 2005. Despite adding 6,101 new workers in August 2023, companies have only added 2,500 new workers since July, up by just 6.1%.

"According to Andrew Challenger, senior vice president of the firm, August's increase in job cuts indicates economic uncertainty and changing market conditions. Companies are under various pressures, including rising operational costs and potential economic slowdown, which compel them to make difficult decisions regarding workforce management."

Despite the growth of 1.4 million nonfarm payrolls in the U.S. economy this year, concerns are rising that the labor market is weakening. Markets anticipate a softening jobs picture to prompt the Federal Reserve to lower interest rates later this month, even with inflation running higher than the central bank's 2% target.

In the technology field, the largest growth in planned layoffs was reported on Thursday, with companies announcing 41,829 cuts, the highest number in 20 months.

"The labor market overall is softening," Challenger said.

Since April, artificial intelligence has been listed as a reason for job cuts, along with cost-cutting and economic conditions.

Government reports indicate a slight increase in initial claims for unemployment benefits in recent weeks, but this does not align with the Challenger layoffs data, which suggests a major escalation.