U.S. Employers Announce 7% Increase in Job Cuts, Reverting to 'Do More with Less'

According to the latest data released by executive coaching firm Challenger, Gray & Christmas, employers in the U.S. announced 90,309 job cuts in March. This represents a 7% increase from the previous month, indicating a concerning trend in the labor market.

Highest Monthly Total Since January 2023

The figure of planned layoffs in March marks the highest monthly total since January 2023, when employers announced 102,943 cuts. This significant surge in job cuts raises questions about the stability of the U.S. job market.

Reasons Behind the Cuts

Companies are resorting to job cuts due to various factors such as store closures, bankruptcies, organizational restructuring, and general cost-cutting measures. Senior Vice President Andy Challenger noted that many companies are adopting a 'do more with less' approach, signaling potential challenges for workers in various industries.

Impact on Industries

While technology continues to lead in job cuts across industries, the data indicates that energy and industrial manufacturing sectors are cutting more jobs this year compared to the previous year. This shift in job dynamics within industries raises concerns about the overall employment scenario.

Contradictory Trends

The increase in job cuts in March may seem contradictory given the overall strength of the U.S. job market by traditional economic measures. With the nation's unemployment rate near a 50-year low and rising wages outpacing inflation, the surge in layoffs raises critical concerns about the underlying factors driving this trend.

Upcoming Jobs Report

The release of the Challenger figures comes a day before the U.S. Department of Labor is set to unveil the March jobs report. This report is anticipated to provide further insights into the current state of the labor market in the U.S.