Layoffs surge to alarming levels in February

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February 2024 witnessed a distressing surge in layoff announcements, marking the highest for the month since the global financial crisis of 2009, according to a report by Challenger, Gray & Christmas. The total of 84,638 planned job cuts represents a 3% increase from January and a worrisome 9% surge from the same month a year ago.

Tech industries, typically seen as pillars of stability, are grappling with a significant wave of layoffs, leading the pack with 28,218 job cuts. Despite this being a 55% decrease from the same period last year, the sheer volume underscores the challenges faced by even the most resilient sectors.

The historical context paints a bleak picture, as this February’s layoff figures are reminiscent of the aftermath of the 2008 financial crisis. In 2009, the labor market witnessed a staggering 186,350 announcements, signifying the depths of the economic downturn. Interestingly, the subsequent month saw financial markets hit their lowest point, marking the beginning of the longest economic expansion on record, which endured until the onset of the Covid pandemic in March 2020.

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