A shocking decline in employment occurred in October.

Employment Figures for October 2023 Announced

According to a report by global workforce consulting firm Challenger, Gray & Christmas, October 2023 became the month with the highest number of layoffs since 2003. Employers announced that153,074 positions were terminated in an effort to reduce costs and decrease pandemic-era employment. This figure is significantly higher than the55,597 layoffs reported in October 2024.

The report noted that the total for October 2023 is the highest October figure in the past twenty years and 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 of1,099,500 positions, which is 44% more than the761,358 layoffs reported throughout 2024.

The technology sector leads in layoffs within the private sector. Andy Challenger stated that the average number of layoffs is well above the monthly average.

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

Companies like Amazon, Target, and UPS have made significant layoff announcements. It is reported that the cuts made throughout 2023 are at the highest level since the chaos in the labor market during the pandemic following 2020.

Challenger's report emerges amid a data drought from the Department of Labor due to the government shutdown. The last official employment report reflects the labor conditions from August, and the employment report for October is not expected to be published tomorrow. Until August, the labor market was essentially seen as stagnant. The unemployment rate rose to 4.3%, and job seekers had difficulty finding 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 planned new hires by employers were announced as488,077; this represents the lowest year-to-date total compared to the750,333 hiring plans reported for the same period in 2024.