Tarathip Kwankeeree
U.S.-based employers announced plans for 64,789 job cuts in April, 28% fewer than announced in March and 3.3% fewer than in April 2023, the Challenger Report said on Thursday.
Year-to-date, U.S. companies have announced 332,043 job cuts, down 4.6% from the 337,411 announced through April of last year.
“The labor market remains tight. But as labor costs continue to rise, companies will be slower to hire, and we expect further cuts will be needed. This low April figure may be the calm before the storm,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas.
That caution in hiring is reflected in the amount of time it takes jobseekers to find a new position. The average duration of unemployment was roughly 5 months in March, or 21.6 weeks, up from 4.4 months, or 19.1 weeks, in the same month a year ago, according to the Bureau of Labor Statistics.
The automotive sector cut the most jobs in April — 14,373 — chiefly on Tesla’s announcement that it will eliminate 14,000 jobs, or 10% of its global workforce. YTD, auto companies announced 20,189 cuts, up 108% from the 9,709 cuts announced in April 2023.
Education followed with the next highest amount of cuts — 8,092 — in April, bringing the YTD total to 17,892, a 635% Y/Y increase.
On a YTD basis, the technology sector continues to lead all industries in job cuts with 47,436, a 58% decline from the 113,944 cuts in the sector in the same period a year ago, Challenger, Gray, & Christmas said.