U.S. Hiring Announcements Drop to Lowest Level Since 2015

WASHINGTON (Reuters) – Hiring announcements by U.S. employers last year were the lowest since 2015, confirming a sharp moderation in job growth.

Global outplacement firm Challenger, Gray & Christmas reported that companies announced 769,953 hiring plans, which is a 1.3% decrease from 2023.

Hiring announcements fell from 11,621 in November to 7,999 in December. This sluggish hiring contributed to a slowdown in job gains, with the unemployment rate increasing from 3.7% at the start of the year to 4.3% in July, and then stabilizing at 4.2% in November.

> “The slower hiring pace reflects ongoing uncertainty in economic conditions and cautious approaches by employers to expansion,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. “Most employers are anticipating additional uncertainty with the upcoming administration, which is leading to slower hiring.”

Planned job cuts totaled 761,358 last year, marking the highest level since 2020 during the COVID-19 pandemic, representing a 5.5% increase from 2023. Outside of the pandemic, layoffs were at their highest since 2009.

Despite the increase in planned layoffs, Labor Department data such as weekly jobless claims and the Job Openings and Labor Turnover Survey have shown consistently low layoffs overall.

Planned job reductions decreased by 33%, totaling 38,792 in December. The technology sector accounted for the majority of job cuts last year, followed by healthcare, automotive, services, and consumer products industries.

The primary reasons for planned layoffs include market or economic conditions, cost-cutting, closing, and restructuring.