SUMMER LABOR MARKET COOLS

Published August 1, 2024

U.S.-based employers announced 25,885 job cuts in July, a 47% decrease from the 48,786 cuts announced one month prior. It is up 9% from the 23,697 cuts announced in the same month in 2023, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.

July’s total marks the fourth time this year cuts were higher than the corresponding month a year earlier. It is the highest total for the month since 2020, when 262,649 cuts were recorded.

So far this year, companies have announced 460,530 job cuts, down 4.4% from 481,906 cuts announced through July last year. With the 1,847,696 cuts recorded through July 2020, it is the third-highest year-to-date total since 2009 when 994,048 cuts were announced through July.

“The job market is indeed cooling, with hiring at the lowest point in over a decade.  While we are seeing increased cuts in manufacturing sectors, both consumer and industrial, most industries are cutting below last year’s levels,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.

Which Industries Cut Workers In July?
Technology                                                                 

The Technology sector cut the most jobs in July with 6,009, for a total of 65,863. This leads all industries in job cut announcements in 2024 and is down 54% from 146,254 job cuts in the sector announced during the same period last year.

“Technology particularly is going through enormous change, and with earnings misses and years of hyper hiring for many of these companies, it’s not surprising the industry is leading in job cutting activity,” said Challenger.

Services

The Services sector cut the second-most jobs in July with 2,932. So far this year, this industry has announced 30,778, an 8% decrease from 33,290 cuts announced during the same period in 2023.

Food

Food manufacturers announced plans to cut 2,423 cuts in July for a total of 19,437. This is up 107% from the 9,387 cuts announced during the same time in 2023.

“Several factors are converging in the Food space to impact staffing, including shipping issues, new technology, and climate change. Meanwhile, the growing use of weight loss drugs may change how people eat and what these companies offer, further disrupting talent needs,” said Challenger.

Consumer Products

Consumer Products manufacturers announced 1,807 job cuts in July, for a total of 22,846 in 2024. This is down 5% from the year-to-date total of 24,120 announced last year.

Health Care/Products

Health Care/Products companies, including hospitals, cut 1,711 jobs in July and 25,178 this year. This is down 39% from 40,947 announced in the same period last year.

Media & News

The Media industry, which includes television, film, streaming, and News, announced 589 cuts in July for a total of 9,339, down 51% from 19,086 announced in the industry through July 2023.

News, which includes digital, broadcast, and print, and is tracked as a subset of Media, announced 172 layoffs in July for a total of 2,569, up 10% from the 2,329 cuts tracked during the same period last year.

Why Are Companies Cutting?

“Cost-cutting” is the leading cause for job cuts in July and this year with 6,626 and 88,547 respectively. Market/Economic Conditions follows for the year with 81,359.

Another 80,976 job cuts were attributed to store, unit, or department “Closing,” while 64,695 job cuts were caused by “Restructuring.”

Companies have not cited technology, with artificial intelligence directly or due to “technological update” for any job cuts since April.

Hiring Plans Lowest Since 2012

U.S. employers announced plans to hire 3,676 workers in July, the lowest monthly total since December 2023 when 3,022 hiring plans were announced. It is the lowest total for July since Challenger began keeping detailed hiring announcements in 2009.

For the year, employers have announced plans to hire 73,596 workers, the lowest year-to-date total since 2012, when 72,858 hiring plans were recorded.

# # #

Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.

Contact Challenger for Media Inquiries

 

 

 

Download Now to See Full Report