U.S. Layoffs Surge in August

(Reuters) – U.S. employers in August announced the highest number of layoffs in five months, primarily driven by cuts in the technology sector, amid concerns about growth and costs.

Firms reported 75,891 layoffs last month, about triple the July figure and the largest month-to-month rise in a year, according to outplacement firm Challenger, Gray and Christmas. However, year-to-date announced reductions are down 3.7%.

“August’s surge in job cuts reflects growing economic uncertainty and shifting market dynamics. Companies face rising operational costs and potential economic slowdown, leading to challenging workforce management decisions,” said Challenger Vice President Andrew Challenger.

This data emerges as worries grow regarding the job market; recent government reports indicated rising unemployment rates and an increase in layoffs in July. Employment data’s softening prompted Federal Reserve policymakers to consider interest rate cuts this month to safeguard the job market.

More than half of August’s cuts, totaling 39,563, were in the tech sector, a sharp rise from about 6,000 in July and the highest since January 2023. The health sector followed with 6,158 announced layoffs.