Recent layoffs have been relatively limited overall, yet some organizations continue to trim their workforces to optimize operations, as highlighted in a fresh analysis. In March, companies across the U.S. eliminated a total of 90,309 positions, marking the highest figure of layoffs in a single month since January 2023, as reported by the global outplacement consultancy Challenger, Gray & Christmas. This number represents a 7 percent increase in layoffs from February's figures.
The technology sector has been notably impacted, with a total of 42,442 job cuts announced throughout the year to date. This is a sharp decline of 59 percent from the 102,391 job cuts reported in the same period last year. Additionally, the government sector played a significant role in the recent layoffs, with 36,044 jobs being cut in March alone, most notably within Veterans Affairs and the U.S. Army. This represents the highest monthly reduction in government jobs since September 2011.
Financial entities, along with businesses in the services and transportation industries, have also implemented significant job reductions in the last quarter. The primary reason cited for these layoffs has been cost reduction, with many companies adopting a strategy to "do more with less," according to Andy Challenger, senior vice president of Challenger, Gray, & Christmas.
Despite the recent spike in layoffs, the overall rate of weekly unemployment claims—a measure often used to gauge the frequency of layoffs in the U.S.—has remained unusually low for several months, even after reaching a two-month high this week. Moreover, the unemployment rate has consistently stayed below 4 percent for 25 months in a row, indicating a robust labor market.
The upcoming employment report from the U.S. Bureau of Labor Statistics is eagerly anticipated, as it will provide further insights into the health of the labor market and potentially indicate whether more job cuts are on the horizon.