September 2022 Challenger Job Cuts Report
Published October 6, 2022
Job Cuts Surge 46% In September, Up 68% From Same Month Last Year
U.S.-based employers announced 29,989 cuts in September, a 46.4% increase from the 20,485 cuts announced in August. It is 67.6% higher than the 17,898 cuts announced in the same month last year, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
September marks the fifth time this year that cuts were higher in 2022 than in the corresponding month a year earlier.
In the third quarter, employers announced 76,284 job cuts, down 1.6% from the 77,515 cuts announced in the previous quarter. It is up 45.1% from the third quarter of 2021 when employers planned to cut 52,560 workers from payrolls.
So far this year, employers announced plans to cut 209,495 jobs, down 21% from the 265,221 cuts announced in the first nine months of 2021. It is the lowest recorded January-September total since Challenger began tracking monthly job cut announcements in 1993*.
“Some cracks are beginning to appear in the labor market. Hiring is slowing and downsizing events are beginning to occur,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.
Retailers led in job cut announcements in September with 9,273, just as many are determining holiday hiring plans. So far this year, the industry has announced 18,213, up 11% from the 16,466 announced in the same period last year.
Technology companies followed with 4,212 cuts in September, for a total of 18,620 so far this year. This is up 86% from the 10,025 cuts announced during the same period last year.
The Automotive sector leads all industries in job cuts this year with 28,922, up 194% from the 9,831 cuts announced through September last year.
Meanwhile, cuts in the Financial Technology (Fintech) sector have increased 927% over last year, from 563 through September 2021 to 5,780 cuts through the same time this year.
The Financial sector, which is dealing with a possible recession and housing downturn, has announced 14,832, up 81% from the 8,205 announced through September 2021.
“The cooling housing market and Fed’s rate hikes are leading to job cuts among mortgage staff at banks and lenders. The recession concerns are leading to increased uncertainty, and companies across sectors are beginning to reassess staffing needs,” said Challenger.
September Hiring Intentions Fall To Lowest Level Since 2011
In fact, in September, employers announced plans to hire 380,014 workers, the lowest September total since 2011, when 76,551 hiring plans were announced.
“Typically, Retail and Transportation/Warehousing are ramping up hiring for the holiday season and announcing their plans in September. This low figure suggests companies that typically staff seasonal hires are waiting to see whether consumers will show up for the holiday season,” said Challenger.
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