WASHINGTON, Jan 9 (Reuters) – Hiring announcements by U.S. employers last year were the lowest since 2015, a report showed on Thursday, confirming a sharp moderation in job growth over that period.
Global outplacement firm Challenger, Gray & Christmas said companies announced 769,953 hiring plans, down 1.3% from 2023.
Job-opening announcements slipped to 7,999 in December from 11,621 in November. Leisurely hiring paced the drag in job gains throughout last year; the jobless rate spiked at mid-year to 4.3% after it began at 3.7% when the year opened, before easing to hold steady at 4.2% in November.
That reflects more continuing uncertainty about economic conditions and cautious employer approaches to expansion, said Andrew Challenger, senior vice president for Challenger, Gray & Christmas. Most employers expect further uncertainty with the change in administration, causing the hiring slowdown.
Planned job cuts stood at 761,358 last year, the highest since 2020, when the COVID-19 pandemic roiled the labor market, up 5.5% from 2023. Announced layoffs outside the pandemic were the highest since 2009.
Despite the jump in announcements, Labor Department data, such as weekly jobless claims and the Job Openings and Labor Turnover Survey, have kept showing low layoffs.
Planned job cuts decreased by 33% to 38,792 in December. The technology sector accounted for most announced job cuts last year, followed by healthcare, automotive, services, and consumer products industries.
Market or economic conditions, cost-cutting, closing, and restructuring were the top reasons for planned layoffs.
