By Ovunc Kutlu
ISTANBUL (AA) - Job cuts in the US monthly jumped 193% in August, compared to July, while hiring fell to its lowest level since 2005, according to a report Thursday.
US-based employers announced 75,891 cuts in August, which rose from 25,885 cuts announced in the previous month, said Challenger, Gray & Christmas, an outplacement firm headquartered in Chicago, Illinois.
Last month was the highest August total for job cuts since 2009, except August 2020, when 76,456 layoffs were recorded, it noted.
"August’s surge in job cuts reflects growing economic uncertainty and shifting market dynamics," Andrew Challenger, senior vice president of Challenger, Gray & Christmas, Inc. said in the report.
"Companies are facing a variety of pressures, from rising operational costs to concerns about a potential economic slowdown, leading them to make tough decisions about workforce management," he added. "Cuts are following a very similar trend from last year as ongoing pressures have challenged labor decisions."
American companies have announced a total of 536,421 job cuts in the US during the January-August period of this year, according to the report.
In August 2024, the tech industry announced the most job cuts in 20 months, since 41,829 cuts were recorded in January 2023. The sector announced 39,563 job cuts in August, and a total of 105,426 since the beginning of this year.
"The tech sector is moving from a growth and innovation focus into one of profitability and efficiency AI and automation adoption is also driving job cuts at tech companies across roles and functions," said Challenger.
"This talent, however, is still in high demand. Many of these professionals will land elsewhere, in and outside of the tech industry. That said, we’re entering a period of slower hiring, so it may take longer than it has at any point in the last decade," he added.
The report, in addition, said hiring plans have fallen to their lowest total in the January-August period of this year since the firm has begun tracking hiring plans in 2005.
"The previous lowest total through August occurred in 2008, when 80,387 hiring plans were announced," said the report. The year of 2008 was marked by the global financial crisis -- the most severe since the Great Depression in 1929.
"US employers have announced 79,697 hiring plans, down 41% from the 135,980 plans recorded through August last year," it added.