WASHINGTON (Reuters) – Hiring announcements made by U.S. employers last year were the lowest since 2015, a report showed on Thursday, underscoring a sharp moderation in job growth over that period.
Global outsourcing firm Challenger, Gray & Christmas said companies announced 769,953 hiring plans, down 1.3% from 2023.
Job advertisements fell to 7,999 in December from 11,621 in November. A hiring slowdown was responsible for slower job gains last year, with the unemployment rate jumping from 3.7% at the start of the year to 4.3% in July and then stabilizing at 4.2% in November.
“The slow pace of hiring reflects the continuing uncertainty in economic conditions and a cautious approach by employers to expansion,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. “Most employers anticipate more uncertainty regarding the incoming administration, leading to a slowdown in hiring.”
Planned job cuts totaled 761,358 last year, the highest level since 2020 when the labor market was affected by the COVID-19 pandemic, and a 5.5% increase from 2023. Outside of the pandemic, announced layoffs were the highest since 2009.
Despite the spike in advertising, Labor Department data such as weekly unemployment claims, job openings survey and labor turnover have consistently shown layoff rates to decline.
Planned job cuts fell 33% to 38,792 in December. The technology sector made up the bulk of job cuts announced last year, followed by the health care, auto, services and consumer products industries.
Market or economic conditions, cost cutting, closures and restructuring were the main reasons behind the planned layoffs.
(Reporting by Lucia Mutikani; Editing by David Gregorio)