In December 2024, US-based employers significantly increased job cuts compared to the previous year, with a total of 38,792 cuts reported. This figure marks an 11% rise from December 2023 and a notable reduction of 33% from November 2024. The technology sector emerged as the hardest hit, accounting for the largest portion of job reductions with 11,430 cuts.
Throughout the fourth quarter of 2024, employers eliminated a total of 152,116 jobs. This figure represents a striking 30% increase from the same period last year, albeit a decrease of 13% from the third quarter of 2024. On a broader scale, the total number of job cuts in 2024 reached 761,358, reflecting a 5.5% rise from 2023.
Notably, when excluding the economic turmoil of 2020 due to the COVID-19 pandemic, this year showcases the highest job cuts since 2009. Andrew Challenger, senior vice president of Challenger Gray & Christmas, commented on the prevailing trends, stating that 'Companies underwent extraordinary change in 2024 due to rapid technological advancement and shifting economic conditions.' He elaborated that many employers are currently bracing for increased uncertainty with the new administration, which is contributing to a slowdown in hiring and a rise in layoffs across various sectors. In conjunction with these developments, the Bureau of Labor Statistics is anticipated to disclose on Friday that the US economy added 165,000 nonfarm jobs in December, following an increase of 227,000 jobs in November.
This report is crucial as it provides further insights into the labor market trends during a period of economic transition. Experts from Oxford Economics have remarked, 'The December employment report will likely support the Federal Reserve's conviction that a more measured pace of normalizing interest rates is appropriate.' They project that approximately 185,000 jobs were added last month, a figure viewed as a 'solid increase' despite interruptions in the labor market caused by strikes and storms earlier in the fourth quarter..