U.S.-based companies announced 102,943 job cuts in January, up from 43,651 in December. This is the highest number since September 2020 and the highest January print since 2009.
The technology sector accounted for 41 percent of all cuts (41,829), followed by retailers (13,000), and real estate (2,191).
Employers announced plans to hire nearly 33,000 workers, mainly in the entertainment and leisure sectors. This is down 58 percent from the same time a year ago and down 37 percent month-over-month.
“We’re now on the other side of the hiring frenzy of the pandemic years,” said Andrew Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc., in a statement. “Companies are preparing for an economic slowdown, cutting workers and slowing hiring.”
This comes after the ADP reported that the private sector created 106,000 jobs in January.
The non-farm payroll (NFP) report from the Bureau of Labor Statistics (BLS) is expected to show the U.S. economy created 186,000 new positions.
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