US layoffs surge in August, led by tech sector cuts

US employers announced the highest number of layoffs in five months in August, primarily driven by cuts in the technology sector due to economic uncertainty and rising costs.

Challenger, Gray & Christmas reported 75,891 layoffs last month, nearly tripling July’s numbers and marking the largest month-to-month (MoM) increase in a year. Despite this surge, year-to-date layoffs are down 3.7 per cent. Challenger Vice President Andrew Challenger attributed the increase to economic pressures, including rising operational costs and concerns about a potential slowdown.

Recent government data showing higher unemployment and increased layoffs have led Federal Reserve policymakers to consider interest rate cuts this month to protect the job market. The technology sector experienced the largest impact, with 39,563 layoffs in August, a significant rise from around 6,000 in July and the highest since January 2023. The health sector followed with 6,158 announced layoffs.

Attribution: US News & World Report

Subediting: M. S. Salama