Business

US Job Cuts Hit 90,000 in March

The United States witnessed a significant rise in job cuts, with employers announcing 90,309 layoffs in March, marking a 7% increase from February and the highest figure since January 2023.

This surge in job cuts, as highlighted by executive coaching firm Challenger, Gray & Christmas, stems from various factors including store closures, bankruptcies, and organizational restructuring.

The move towards a “do more with less” strategy is evident across several sectors, notably in technology, energy, and industrial manufacturing, indicating a broader trend of cost optimization amidst economic uncertainties.

Industry-Specific Layoffs

Government positions saw the largest number of planned reductions, totaling 36,044, with technology firms following with 14,224 job cuts.

The media sector is also feeling the pinch, shedding 2,246 jobs as it struggles with evolving business models.

High-profile layoffs include Ben & Jerry’s parent company Unilever, which plans to reduce its global workforce by 7,500, and other significant cuts announced by Credit reporting agency Transunion and grocery chain Lidl.

Labor Market Resilience

Despite these layoffs, the labor market remains robust, with low unemployment rates and solid hiring figures suggesting a healthy economic backdrop.

Job growth is anticipated to continue through 2024, albeit at a slower pace, according to PNC chief economist Gus Faucher.

The upcoming U.S. Department of Labor’s March jobs report is keenly awaited, with predictions estimating an addition of 200,000 jobs.

The recent layoffs, while notable, have not yet significantly impacted the broader job market, which continues to show signs of strength and resilience in the face of economic shifts.

With information from CBS News

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