October Layoffs the Worst Since 2003

Layoffs in the US have reached recession-level numbers, reports the Washington Post, which cites new data from the private firm Challenger, Gray & Christmas to back that up:

• So far this year, employers have announced 1.1 million job cuts, a figure in line with the Great Recession of 2008-09, and the biggest number since the pandemic. Layoffs are up 65% over last year, per Reuters.
• October alone saw more than 153,000 cuts—a 183% jump from the previous month, per the Post—making it the worst October for layoffs since 2003.

"We're entering new territory with these layoffs in October," says John Challenger, the firm's CEO. "We haven't seen mega-layoffs of the size that are being discussed now—48,000 from UPS, potentially 30,000 from Amazon—since 2020 and before that, since the recession of 2009." The hardest-hit sectors include technology, retail, warehousing, and service. Technology firms, in particular, have cited the disruptive impact of artificial intelligence as a factor, with tech layoffs up 17% from last year.

Despite the spike in layoffs, the broader economy appears stable for now, per the Post. The most recent official data puts the unemployment rate at 4.3%, though economists warn that conditions could deteriorate quickly. In fact, the rate is expected to reach 4.5% in the coming months, per CBS News.