Private Sector Job Cuts Soar in August
According to the Challenger, Gray & Christmas, Inc. (CG&C) Job Cut Announcement Report released on Thursday, US-based employers announced 75,891 cuts in August, a 193% increase from the 25,885 announced in July. Year-over-year, cuts increased 1.0%.
So far this year, companies have announced 536,421 job cuts, down 3.7% from 557,057 announced through August of last year. Excluding the 115,762 job cuts announced in August 2020, last month was the highest August total since 2009, when 76,456 layoffs were recorded.
According to CG&C, job cuts were widespread, with the technology sector leading the way, followed by education, entertainment and leisure, industrial manufacturing, retail, and media and news.
US employers announced 79,697 hiring plans year-to-date, down 41% from the 135,980 plans recorded through August last year. This is the lowest total since Challenger began tracking in 2005. The previous lowest total through August occurred in 2008, when 80,387 hiring plans were announced.
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