Companies in the United States reduced layoffs in December, with the fewest announced since July. Even so, the total layoffs in 2023 are the highest since 2020, when the COVID-19 pandemic emerged. The figures were presented in a report released on Thursday.
The total announced layoffs was 34,817 in December 2023, down 24 percent from 45,510 in November, according to data released by staffing firm Challenger, Gray & Christmas. The announced layoff number is down 20 percent compared to December 2022.
The total number of layoffs announced during 2023 will approximately double from 2022 to more than 720 thousand. This is the highest figure since 2020, when more than 2 million people were reported laid off at that time, the report said.
“Layoffs are starting to decline, and hiring remains steady toward the end of 2023,” said Andy Challenger, employment and labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc.
“Despite this, labor costs are still high. “Employers are still being very cautious and making budget cuts into 2024, so the hiring process will likely slow for many job seekers and cuts will continue in the first quarter, albeit at a slower pace,” Challenger added.
The technology and retail industries recorded the highest number of layoffs in 2023, with employers most frequently citing economic uncertainty and closure of businesses, units, or stores as reasons for layoffs. Employers in the technology industry announce 168,032 layoffs annually, slightly below the sector’s record of 168,395 set in 2001. (ns/jm)