US job losses fall by 49% in June, the lowest level in seven months

A recent survey indicates that job cutbacks in the US fell by 49% in June to a seven-month low, providing some relief from the layoff season and suggesting that things may have stabilised.

As per the study by career services company Challenger, Grey & Christmas. Employers with US locations made 40,709 layoffs in June, which is a 49% decrease from the 80,089 cuts made in May.

According to a study, it represents a 25% increase from the 32,517 announced in the same month last year.

Despite the decline, June’s total is the sixth time so far this year that cutbacks have been greater than the same month a year ago.

According to the research, “Employers have announced 458,209 cuts so far this year, a 244% increase from the 133,211 cuts announced through June 2022.”

The previous record-breaking first-half number was 1,585,047 cuts in 2020.

It is the largest January to June total since 2009, when 896,675 job cutbacks were reported, with the exception of 2020.

“The decline in cuts is normal over the summer. The slowest month for announcements on average has traditionally been June, according to Andrew Challenger, senior vice president of Challenger, Grey & Christmas.

Additionally, given that the Fed is holding rates, it’s feasible that the significant employment losses attributed to inflation and interest rates would not materialise.

In contrast to the 77,715 cutbacks made in the second quarter of 2022, businesses announced 187,793 cuts in the second quarter, an increase of 142%.

Compared to the 270,416 cutbacks that were announced in the previous quarter, it is down 31%.

With 141,516 job cutbacks reported so far this year, the IT sector has declared the most job layoffs (2,353% more than the 5,769 cuts revealed during the same time last year).

A total of 48,212 job cutbacks have been reported by US retail corporations this year, which is the second-highest number after the 5,896 cuts made in the same period last year.

In the first half of the year, services businesses announced 31,820 cutbacks, 163% more than the 12,081 cuts made in same sector at the same period in 2022.

Challenger claimed that the layoffs at services organisations “might be reflecting the cost-cutting many companies are undergoing to prepare for an economic slowdown.”

This year, 18,836 jobs were lost in the media sector. 2,091 of them worked in news, including internet, broadcast, and print.

According to the research, US firms have already committed to adding 115,462 employees in 2023, which is the fewest so far since the first half of 2016, when 76,751 new hiring were reported.

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