In the past year, a lot of American companies had to let go of many employees. The layoffs in the previous year were much higher, about 98 percent more, compared to 2022. Challenger, Gray & Christmas recently shared these numbers – in the last year, 7,21,677 people lost their jobs, while in 2022, it was 3,63,832.
Now, experts are saying that in 2024, more people might face job cuts. This could happen because of higher interest rates and ongoing inflation.
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Major Company Layoffs 2024
Many Americans are hopeful, but there are still a few worries. Layoffs have already started this year, with Wayfair planning to let go of at least 13% of its global workforce. The publisher of Iconic Sports Illustrated is also cutting most of its staff, which the union says is a tough day for its members. Macy’s recently announced layoffs of around 3.5% of its total employees, about 2,300 people, and is closing five stores.
Despite these job cuts, people are more positive about the economy. Consumer sentiment increased by 13% in the first half of January compared to December, according to the University of Michigan. This might be because inflation is slowing down, mortgage interest rates are dropping, and gas prices are lower. The White House sees this as a win, suggesting that President Biden’s economic plan is making more Americans feel positive.
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Experts Prediction
In the coming year, 2024, many experts predict that more individuals could face job losses due to increased interest rates and continued inflation. Andy Challenger, a senior vice president, explained that companies are concerned about the high costs of labor. Up until now, they have been cautious, but in 2024, there is a possibility they will implement measures to reduce expenses.
This could result in a slower hiring process and a continuation of layoffs during the first quarter. The uncertain economic conditions are prompting companies to take careful steps to manage their finances. Employees might experience challenges as businesses make adjustments to navigate these economic factors.
Tech Sector Most Affected
In the last year, the U.S. tech Industry had the highest number of job cuts, with 1,68,032 employees losing their jobs. This is a big jump of 73 percent compared to the year before.
The Tech Sector is likely to see more job losses due to advancements in AI technology, mergers, acquisitions, and changes in talent and workforce. Even if the employees have the perfect degree in their academy, they are jobless because of a lack of skills.
In the retail industry in the U.S., there were 78,840 job layoffs just last year. This is a significant increase of 274 percent compared to the previous year in 2022.
Medical Field Job Layoff
Even in the medical field, people are losing their jobs. Last year, 58,560 employees were laid off from pharmaceutical companies, hospitals, and similar places. This is a big increase of 91 percent compared to the previous year, 2022.
The main reasons for these job cuts are seen as challenges in the market and economic conditions. Store closures, companies going out of business, and the influence of AI technology are also mentioned as factors leading to employee layoffs.
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| FAQ – Layoff 2024 |
1. What is the Layoff Policy in the USA?
In the USA, Companies with 100 or more employees must follow the WARN Act. It says they must either give a 60-day written notice for mass layoffs or pay the employees if they don’t provide the notice.
2. What are the most demanded jobs in 2024?
The most wanted jobs in the US in 2024 are expected to be in healthcare, technology, and services. Jobs like Nurse Practitioner and Wind Turbine Service Technician are in high demand.
