Job Cuts on the Rise in the U.S.
Recent data released by executive coaching firm Challenger, Gray & Christmas revealed that employers in the U.S. announced 90,309 job cuts in March. This marks a 7% increase from February and represents the highest monthly total since January 2023, when 102,943 cuts were announced.
According to Challenger, companies are implementing these layoffs due to store closures, bankruptcies, organizational restructuring, or general cost-cutting measures. Senior Vice President Andy Challenger stated that many companies seem to be adopting a 'do more with less' approach, leading to the surge in job cuts.
Despite the strong U.S. job market by traditional economic standards, the number of March layoffs is surprising. The nation's unemployment rate is at a 50-year low, and wages are outpacing inflation. In January, the economy added 353,000 jobs, exceeding the expectations of most economists.
While technology remains the leading industry in job cuts this year, sectors like energy and industrial manufacturing are also cutting more jobs compared to the previous year.
