– U.S.-based employers announced 57,727 job cuts in November 2024, marking the fourth-highest level of layoffs for the month since 2008. This figure represents a 26.8% increase from the 45,510 cuts in November 2023, according to a report by Challenger, Gray & Christmas, Inc.
The surge in job cuts was driven primarily by economic pressures in the auto and tech industries, which saw significant layoffs. Automotive companies announced the most job cuts, with 11,506 layoffs, the highest monthly total since April 2024. Technology firms followed closely, with 10,231 cuts last month.
The economic challenges faced by these industries include potential tariffs affecting U.S. automakers with overseas factories, intensifying competition from Chinese electric vehicle manufacturers, and shifts in government subsidies for EVs. Technology companies are also grappling with fluctuating demand and rising operational costs.
The impact of these job cuts is far-reaching, affecting not only the employees but also the broader economy. With the unemployment rate near historic lows, many out-of-work Americans are finding it increasingly difficult to secure new jobs. About 40% of the 7 million people who were out of work in October have been looking for work for more than 15 weeks, according to data from the Bureau of Labor Statistics.
Additionally, U.S. jobless claims rose to a one-month high during Thanksgiving week, with applications increasing by 9,000 to 224,000 in the week ended Nov. 30. New claims data tend to be choppy around the holidays, and the four-week moving average edged up to 218,250.
Families across the country are feeling the pinch, it’s a challenging time for many.
Sources:
https://www.forexfactory.com/news/1317207-us-november-2024-job-cuts-rise-auto-and-tech