US Layoffs in First 8 Months Lowest in 4 Years, Signaling Still Wanting to Hire
Macro
Challenger, Gray & Christmas reported that private sector layoff announcements in the US during the first 8 months of this year totaled 529,914 positions, the lowest level in 4 years. Meanwhile, hiring plans during the same period surged to a 3-year high, reflecting that companies still want to hire. AI was not the primary reason for layoffs in August for the first time since February, while organizational restructuring became the top reason. However, when counting the entire year, AI remains the top reason. Andy Challenger, Chief Revenue Officer of Challenger, said that although companies have increased hiring plans, filling open positions has not been rapid. Economists view the labor market as being in a low-hire, low-fire state. The US Department of Labor reported that initial jobless claims rose by 2,000 to 206,000, slightly above expectations. It is scheduled to release August nonfarm payroll figures today, with analysts expecting an increase of 58,000 positions, after a decrease of 23,000 in July, and the unemployment rate holding steady at 4.1%.
