US Planned Layoffs Drop Again in October, Recruitment Firm Reports
The landscape of planned layoffs in the United States experienced a significant decline in October, marking a three-month low. This trend indicates that the job market remains robust ahead of the upcoming presidential election. According to a monthly tally of workforce reduction announcements, firms reported 55,597 layoffs last month, a 23.7% decrease from the 72,821 layoffs announced in September, as stated by outplacement firm Challenger, Gray & Christmas.
The decline in layoffs would have been even more pronounced if not for substantial cuts within the aerospace industry, particularly at Boeing. The company announced over 17,000 job cuts as it continues to navigate the challenges posed by an ongoing strike.
Despite the month-over-month improvement, year-to-date announced layoffs stand at 664,839 through October. This figure is 3.7% higher than the same period in 2023, making it the highest since 2020. That year saw approximately 2.16 million layoffs announced during its first ten months, largely due to the impact of the COVID-19 pandemic.
“Job openings have fallen, and hiring is relatively flat at the moment,” noted Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas. He added, “Companies appear to be in a holding pattern as we await election results and the potential regulatory and market environment that follows.”
The stability of the job market is underscored by voter concerns, which have largely centered on persistent inflation rather than employment levels. The jobless rate continues to sit at historically low levels. High prices have presented challenges for incumbent Democrats, including Vice President Kamala Harris, the party’s presidential nominee. Meanwhile, polls indicate a preference among voters for the economic policy proposals of Republican former President Donald Trump. The electoral race is considered highly competitive.
Additionally, the federal government’s more immediate measure of layoffs, reflected in weekly figures for new unemployment benefit applications, showed a temporary increase earlier this month. This rise was attributed to the impacts of Hurricanes Helene and Milton, along with the aftereffects of the Boeing strike. However, those figures stabilized by mid-month.
In contrast, the number of individuals continuing to receive unemployment benefits beyond a week is at a three-year high, though this increase has remained gradual. Economists describe the job market as healthy, with a return to better balance. The next update from the Labor Department is anticipated imminently.
The Challenger, Gray & Christmas data was released one day prior to the Bureau of Labor Statistics’ monthly nonfarm payrolls report. According to a poll of economists, it is expected that employers added 113,000 jobs in October. This figure contrasts with the 254,000 positions created in September, primarily due to disruptions from the hurricanes and the Boeing strike. The unemployment rate is projected to remain steady at 4.1%.
The US job market continues to demonstrate stability amidst various economic challenges. The decline in layoff announcements in October and the consistent jobless rate paint a positive picture ahead of the presidential election, though uncertainties and economic pressures remain.
