| Actual | Previous | |
|---|---|---|
| Level | 34,817 | 44,510 |
Highlights
The Challenger layoff report for December has 34,817 announced job-cut intentions, down 23.5 percent from 44,510 in November and down 20.2 percent from December 2022. For 2023 as a whole, there were a total of 721,677 layoff intentions compared to 363,824 in 2022. Leading layoff intentions for both 2023 and 2022 is the tech sector at 168,032 and 97,171, respectively.Significant downsizing occurred at big tech companies in late 2022 and continued into 2023, along with the arrival of AI capabilities that many businesses are turning to.
In December, layoff intentions are led by 6,260 in the financial sector or 18.0 percent of the total. In the aftermath of the UAW strikes, there were 4,858 job cuts planned in automotive or 14.0 percent of the total. Technology companies announced another 4,470 cuts, or 12.8 percent of the total.
Reasons cited for layoff announcements in December are led by closings with 7,967 announcements, or 22.9 percent of the total. Another 6,350 give no reason, or 18.2 percent of the total. Market/economic conditions are given as a reason by 5,357 or 15.4 percent of the total. Businesses are not planning massive year-end layoffs, but the reasons suggest businesses are generally being cautious about losing experienced workers unless necessary.
Businesses are also being cautious about taking on new workers. In December, hiring intentions fell 80.6 percent to 3,022 from 15,566 in November and are down 94.2 percent from a year ago. Intentions to hire are strongest for warehousing which had 921 announcements, or 30.5 percent of the total. This suggests that some seasonal workers during the holiday shopping season could well be offered permanent employment.
In December, layoff intentions are led by 6,260 in the financial sector or 18.0 percent of the total. In the aftermath of the UAW strikes, there were 4,858 job cuts planned in automotive or 14.0 percent of the total. Technology companies announced another 4,470 cuts, or 12.8 percent of the total.
Reasons cited for layoff announcements in December are led by closings with 7,967 announcements, or 22.9 percent of the total. Another 6,350 give no reason, or 18.2 percent of the total. Market/economic conditions are given as a reason by 5,357 or 15.4 percent of the total. Businesses are not planning massive year-end layoffs, but the reasons suggest businesses are generally being cautious about losing experienced workers unless necessary.
Businesses are also being cautious about taking on new workers. In December, hiring intentions fell 80.6 percent to 3,022 from 15,566 in November and are down 94.2 percent from a year ago. Intentions to hire are strongest for warehousing which had 921 announcements, or 30.5 percent of the total. This suggests that some seasonal workers during the holiday shopping season could well be offered permanent employment.
Definition
This monthly report counts and categorizes announcements of corporate layoffs based on mass layoff data from state departments of labor. The job-cut report must be analyzed with caution. It doesn't distinguish between layoffs scheduled for the short-term or the long term, or whether job cuts are handled through attrition or actual layoffs. Also, the job-cut report does not include jobs eliminated in small batches over a longer time period. Unlike most economic data, this series is not adjusted for seasonal variation.
Description
The job-cut report is basically a rehash of the weekly jobless claims report but provides additional insight into where layoffs are occurring. There is industry and geographic (states) detail that is not available with weekly jobless claims.
