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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Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.
U.S. ‘would be lucky’ to get a mild recession, Ken Rogoff warns
Layoff upswing doesn’t dampen labor market
Published Oct. 12, 2022
Read full story hereLayoffs swelled 46% in September compared to August figures, with U.S. employers announcing 29,989 job cuts for the month, a study released Oct. 6 by executive outplacement firm Challenger, Gray & Christmas showed. This represents a 68% bump from layoffs reported in September 2021, the report found.
Challenger’s report also shows that although September marks the fifth time this year cuts were higher than those made during the corresponding month in 2021, overall planned job cuts in 2022 are still markedly below those of the previous year.
The financial sector has announced 14,832 job cuts so far in 2022, an 81% jump from the number of layoffs announced the year prior through September 2021, according to Challenger’s report.
Labor Market ‘Cracks’ Beginning To Appear As Job Cuts Surge And Unemployment Claims Unexpectedly Rise
Published Oct 6, 2022
U.S.-based employers announced nearly 30,000 cuts in September, up 46% from August and nearly 68% from one year ago—marking the fifth month this year that cuts were higher than in 2021, career services firm Challenger, Gray & Christmas reported Thursday morning.
“Some cracks are beginning to appear in the labor market,” the firm’s Andrew Challenger said in a statement, adding that the cooling housing market and Fed’s rate hikes are leading to job cuts among mortgage staff at banks and lenders and that recession concerns have fueled increased uncertainty.
Despite widespread reports of layoffs hitting giant corporations, the labor market has remained one of the economy’s strongest pillars this year. According to Challenger, U.S. employers have announced plans to cut nearly 210,000 jobs, down 21% from the 265,000 cuts announced at this point last year and marking the lowest total for the period since at least 1993. Fed officials have long pointed to the strong job market as justification for their aggressive interest rate hikes, which work to tame inflation by slowing the economy. As a result, investors are hoping for worse-than-expected jobs data to help justify smaller hikes.
The Federal Reserve Pivot Is Coming In December; Here’s Proof
Published on Oct 18, 2022
Outplacement firm Challenger, Gray & Christmas reported on Oct. 6 that companies announced plans in September to hire 380,000 workers. That was down from nearly 940,000 a year ago and the weakest total for September since 2011.
A Not-So-Great Resignation? Workers who found a better-paying role feel less job security as recession fears rise
By Sarah Foster
Published on October 20,2022
Employers announced almost 30,000 job cuts in September, up nearly 68 percent from the same month last year and the fifth time this year that cuts eclipsed those in the corresponding month a year earlier, according to jobs data firm Challenger, Gray and Christmas. Layoffs in the technology sector are up almost 85 percent from last year and have accounted for nearly 9 percent of all total layoffs in 2022, the agency also found. It highlights how the shakiness of an individual’s employment status also depends on the industry in which they work.
Target CEO: We’re seeing ‘healthy’ spending despite ‘unusual’ economic times
Published on October 18, 2022
U.S.-based employers announced 29,989 job cuts in September, a 46.4% increase from August, according to data from outplacement firm Challenger, Gray & Christmas. The figure is a stunning 67.6% higher from the same month last year. September marked the fifth time this year that job cuts were higher in 2022 than in the same month a year ago, the data showed.
Remote workers could be the first to go in the next round of recession layoffs
That bias will be that much stronger if it’s coming from top executives, said Andy Challenger, senior vice president at Challenger, Gray & Christmas, an outplacement firm that tracks layoffs. For CEOs who have a strong preference for having people back in the office, he said, letting go of remote workers could be a way of killing two birds with one stone. “HR leaders know that’s a really bad policy, that it would be a blunt tool,” Challenger said. “But I think some CEOs are following that path.” … Meanwhile, even as the labor market has held up remarkably well, layoffs are increasing. The firm Challenger counted almost 30,000 job cuts announced in September by U.S. employers — a 68% increase from the same month in 2021. Layoffs have surged among tech firms, especially young ones in the San Francisco Bay Area.
Bad winter coming for U.S. media companies
by Sara Fischer
published on Oct 25, 2022
Driving the news: New data from Challenger, Gray & Christmas finds that news media layoffs are beginning to tick up again after a relatively stable summer. So far, nearly 3,000 media jobs have been cut this year, with more than one-third (1100) coming from the news media industry.