A shocking decline in employment occurred in October.

Employment Figures for October 2023 Released

According to a report by the global workforce consulting firm Challenger, Gray & Christmas, October 2023 experienced the worst layoff announcements since 2003. Employers announced the termination of 153,074 positions in an effort to reduce costs and decrease pandemic-era employment. This figure is significantly higher than the 55,597 cuts reported in October 2024.

The report states that the total for October 2023 is the highest October figure in the last twenty years and represents the highest number recorded in a single month during the fourth quarter since 2008. In the first ten months of this year, U.S. companies closed a total of 1,099,500 positions, which is 44% higher than the 761,358 layoffs reported throughout 2024.

The technology sector leads in layoffs within the private sector. Andy Challenger noted that the average number of layoffs this month is significantly above the norm.

Challenger stated, “Some sectors are adjusting after the employment boom during the pandemic, but this is exacerbated by the adoption of artificial intelligence, weakening consumer and corporate spending, and rising costs, increasing layoffs and hiring freezes.” He added that those currently laid off are facing challenges in quickly finding new positions.

Companies such as Amazon, Target, and UPS have announced significant layoffs. It is noted that the cuts made throughout 2023 represent the highest levels since the chaos created in the labor market during the pandemic in 2020.

Challenger’s report emerges from a data drought from the Department of Labor due to government shutdown. The last official employment report reflects labor conditions from August, and the employment report for October is not expected to be published tomorrow. Until August, it was observed that the labor market was essentially stagnant. The unemployment rate rose to 4.3%, and job seekers struggled to find available positions.

On the other hand, according to data published by ADP, limited job growth was observed in the private sector in October. By the end of October, the number of new hires planned by employers was announced as 488,077, representing the lowest year-to-date total compared to the 750,333 job acquisition plans reported in the same period of 2024.