U.S. employers reported the fewest job cuts for any October since 2023. A total of 43,994 job reductions were announced, according to Challenger, Gray & Christmas. This number is a 71% drop from last year, when companies reported the highest cuts in over two decades. The decrease in layoffs comes as hiring plans increase, with businesses getting ready for the holiday shopping season.
Key Details
In October, employers planned to hire nearly 445,000 workers. This is a 57% rise from a year ago and the highest number for any October since at least 2009. Amazon plans to hire 300,000 seasonal workers, making up nearly two-thirds of the seasonal hiring. United Parcel Service also announced plans to add 100,000 workers. Andy Challenger, chief revenue officer at Challenger, said companies are spreading out their hiring announcements. They are waiting longer to assess the season's dynamics before deciding on staffing levels.
Background
The October jobs report is set to be released on Friday. It is expected to show that the U.S. economy added about 59,000 jobs, up from September's 29,000. The unemployment rate is projected to stay steady at 4.2%. However, wage growth is expected to lag behind inflation. Annual wage increases are expected at 2.9%, which is below the inflation rate of 3.7% recorded in September. Diane Swonk, chief economist at KPMG, noted that the labor market has low turnover and fewer new entrants. This is contributing to slow job growth.
Related coverage: Amazon to Hire 300,000 Seasonal Workers for Holiday Season, Block Announces Second Round of Job Cuts in 2026.
The drop in job cuts and the rise in hiring plans could boost consumer spending during the holiday season. This would benefit sectors like retail and logistics. However, wage growth lagging behind inflation may limit overall consumer buying power. Investors will look for the October jobs report release on November 6 for more insights into labor market trends.
Based on reporting by: nbcnews.com, businesstimes.com.sg