October Job Cuts Surge From Last Year as Job Openings Drop, Hiring Flat

A Safran technician works at the LEAP engine maintenance center during a media visit to Steenokkerzeel, near Brussels, on Oct. 29, 2024. John Thys/AFP via Getty Images

U.S. layoff announcements increased in October from a year ago, signaling that the labor market is still gradually cooling after an overheated stretch in the post-COVID-19 pandemic economy.

Companies announced 55,597 layoffs in October, down by 24 percent from September and up by 51 percent from the same time a year ago, according to new data from global recruitment firm Challenger, Gray & Christmas.

The aerospace and defense industry led the October layoffs with a total of 18,465 cuts. This was primarily driven by Boeing’s announcement that it would eliminate 17,000 employees as part of the struggling company’s turnaround efforts.

“Major cuts from bellwether companies tend to have downstream effects which could mean more job losses for suppliers and customers in the near term,” Andrew Challenger, senior vice president for Challenger, Gray & Christmas, said in a statement.

Retail slashed close to 7,700 jobs in October, the second-highest number for the month. The consumer products industry followed, eliminating more than 4,500 positions.

Technology has been the top sector for layoffs in 2024, with job cuts totaling 120,470.

The group noted that October was the seventh straight month with higher job cut announcements than in the previous year.

In the first 10 months of 2024, businesses have announced 664,839 personnel reductions, an increase of nearly 4 percent from the same year-to-date span of 2023. Outside of the COVID-19 pandemic, this is the highest year-to-date total since 2009.

Cost-cutting has been the main reason for this year’s layoffs. Closures and market conditions have also contributed to the steady drop in headcount.

Hiring plans also have been lackluster in 2024.

Employers announced plans to hire 266,743 workers in October, but Amazon accounted for 250,000 of them.

In the first 10 months of the year, employers released plans to hire more than 750,000 employees, the lowest year-to-date total since 2016.

“Job openings have fallen and hiring is pretty flat at the moment,” Challenger stated. “Companies appear to be in a holding pattern as we await election results and the potential regulatory and market environment that follows.”

Snapshot of the US Labor Market

This week’s main event, the Nov. 1 release of the October jobs report, is the final significant snapshot of the U.S. labor market ahead of the presidential election.

Heading into the Nov. 5 presidential election, the U.S. labor market has been sending mixed signals.

John Butters, vice president and senior earnings analyst at FactSet, said the median estimates for employment gains and the unemployment rate are 117,500 and 4.1 percent, respectively. If the payroll number is accurate, it would be the lowest reading since April and trail the 12-month average of 203,200.

A hiring sign is displayed in the window of a restaurant in Alexandria, Va., on Aug. 22, 2024. Anna Rose Layden/Getty Images

The White House warned that the October jobs data could experience a ripple effect from this month’s labor action.

“We expect payrolls to be affected by the strikes; that’s pretty much baked in,“ Jared Bernstein, head of the Council of Economic Advisers, told reporters at an Oct. 30 news briefing. ”The Bureau of Labor Statistics has told us that there are 41,000 and change workers who will not be counted on payrolls in October.”

Thousands of Boeing factory workers have been on strike since Sept. 14. Members of the International Association of Machinists and Aerospace Workers recently voted against the company’s latest contract offer as leaders attempt to revive a pension program management eliminated a decade ago.

Economists have cautioned that hurricanes Helene and Milton might distort upcoming economic statistics.

“The income and spending picture was likely messy in October, with big distortions from Hurricanes Milton and Helene and the Boeing and dock workers strikes,” Bill Adams, chief economist for Comerica Bank, said in a note.

However, although the federal government’s weekly report on individuals filing for first-time unemployment benefits was elevated in early October, weekly jobless claims have since receded.

For the week ending on Oct. 26, initial jobless claims fell by 14,000 to 216,000, the lowest since May, according to the Department of Labor.

Continuing jobless claims—a measurement of the number of individuals already receiving weekly unemployment benefits—dipped to 1.862 million from a downwardly revised 1.888 million. The four-week moving average, eliminating the week-to-week volatility, also dropped to 236,500 from an upwardly adjusted 238,750.

The labor market has paused as fewer workers quit their jobs and more businesses curtail their hiring efforts.

According to the Bureau of Labor Statistics, the number of job vacancies was below 8 million in September, the lowest since January 2021. Additionally, the number of people voluntarily leaving their jobs declined to 3.071 million, the lowest since August 2020.

RedBalloon’s October Freedom Economy Index found that 77 percent of small businesses are neither hiring nor firing staff, up from 54 percent a year ago.

The economy remains the top issue for many Americans at the ballot box. Whether the labor market will play a role in the presidential contest remains to be seen.

Recent surveys suggest that more Americans are upbeat about the national employment situation.

The Conference Board’s Consumer Confidence Index found that consumer confidence bounced back in October because of improving views on current job availability.

“Compared to last month, consumers were substantially more optimistic about future business conditions and remained positive about future income,” Dana M. Peterson, chief economist at The Conference Board, said. “Also, for the first time since July 2023, they showed some cautious optimism about future job availability.”

Mark Malek, chief investment officer at Siebert Financial, noted that recent data suggest that labor conditions are loosening, but the “market, while weaker than a year ago, is still standing on two feet.”

The broader economy could be showing signs of slowing growth, according to Judith Raneri, senior vice president and portfolio manager at Gabelli Funds.

“Recent data show that while the U.S. economy is still resilient, signs of slowing growth are emerging,“ Raneri said in a note. ”Q3 2024 GDP grew at 2.8 percent, just below the 3 percent forecast, with strong consumer spending driving growth. However, record-high credit card debt suggests potential financial strain, and the labor market is softening, with slower job gains.”